Auditing Assignment

In: Business and Management

Submitted By Pravi2Shesh
Words 1439
Pages 6
AYB 301 Audit & Assurance

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Group Ethics Project
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Semester 1, 2015
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Total Word Count: 1250
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This case study will analyse the ethical dilemmas faced by David, audit manager at C & A who is hired to do the financial year-end audit for MAL. The six step ethical framework will be adopted to gain an understanding of principles and obligations for analysing the situation faced by David and arrive to a professional and responsible resolution.

Step 1: Relevant Facts of the Case

MAL-Marburg Appliances Ltd | * White goods company listed on the ASX * Reckless furnishing of financial statements. * Issues not identified in previous audit report * Unqualified audit reports issued for the previous 5 years * Closing inventory count is overstated as it included obsolete goods. | Penny Yang | * The CFO of MAL * Offered David a discounted yearly gym membership * Intimidated David and Michael to finish audit within 6 weeks, or MAL will change the audit team | Joe Miller | * A new warehouse manager * Inexperienced in large volume of purchase and sales | Michael Thompson | * New lead audit partner at MAL * Not familiar with “white goods industry ” | David Brown | * Employed by mid-tier firm of C&A * Audit manager for MAL * Received a $10,000 increase in salary * Not involved in MAL’s audit before * Ask his friend (Peter) for advice |

Step 2: Identify The Ethical Issues

Part A: General Application | Case Issues | S110 Integrity S110.1 members should be straightforward and honest in all professional and business relationship. S110.2 cannot knowingly associate…...

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