Essay About Old Linear Accelerators And Professional Judgments

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[pic 1][pic 2][pic 3]Assignment 1 – AuditingLecturer –  Farooque HussainSubmitted by:Nupur Agrawal11591429 Question 1 – Case Study1. Determine the facts:In the given case we can summarize the following facts, CCCL owns two old linear accelerators used in radiation therapy, Radiographers using these linear accelerators have raised concerns that they have adverse radiation impacts on patients. CEO of CCCL, Adam Chase approached Belinda Battersby (the audit partner responsible for financial report audit) , to provide an opinion that the linear accelerators are fit for use.Adam pointed out that CCCL audit is up for tender the following year and suggested that Battersby & Associates might like to take on the linear accelerators engagement without charging the fees as a gesture of goodwill.  2. Define the ethical issuesStakeholders include:Belinda BattersbyRadiographersPatientsThe potential clientThe competitor firmsEthical issuesAdam has requested Belinda to provide an opinion that the linear accelerators are fit for use and he give the hint of the issue of tender and asking for favor of engagement for free. The major ethical issue arises for Belinda being an Auditor that whether she should give the misleading statement in Audit report and get the tender for following year or she should refuse to give the misleading statement about the accelerators and maintain her integrity and objectivity while auditing a financial report.3. Identify the major principle, rules and valuesIn reference to APES 110, Section 100 to 150 (Gay & Simnett, 2010),Integrity – An auditor has to be straight forward and honest in all professional and business relationship and should give fair and truthful dealings and fair statements without any omissions and false statements.Objectivity – An auditor not to permit bias, conflict of interest or undue impact of others to override professional judgments. Professional behavior – to keep up proficient information and ability at the level required to guarantee that a client gets Professional Services as per professional standards.In reference to Section 331 (Gay & Simnett, 2010)Auditor is entitled to receive reasonable fees and expenses for the work needed to be done. This provision lets the auditor to create an environment for and audit process which is free from undue influence and obstruction. This provision let the auditor in resisting management pressure.4. Specify the alternativesWork for freeDo not work for free and give a correct and fair audit for financial reportTalk to Adam and clarify that she cannot work for free5. Compare values and alternatives and assessing consequencesWork for free If she works for free then, it is the violation of APES Section 240, because according to it there should be reasonable fees.The misstated audit report can create a trouble for her in future.Radiographers might question about the false statement in the reportPatients will continue to suffer the adverse effects of the old linear acceleratorsShe will get the tender of CCCL audit next yearDo not work for free and give a correct and fair audit for financial reportAs per code of ethics APES 110, S 100, she should follow the principles of integrity, objectivity and thus enhancing her professional reputation.The integrity of Belinda will be intact Patients will not suffer with the adverse effects of old linear acceleratorsRadiographers will appraise her professional judgment and objectivityBattersby and Associates might lose the tender for next yearAs per S 331, she can ask for reasonable fees for the workTalk to Adam and clarify that she cannot work for freeAdam would revise the proposal and might apologize for using old linear accelerators.Belinda will lose the tender for next year.6. Make your DecisionWe may conclude that, Belinda should not work for free and give a correct and fair audit for financial report.Question 2 – Business ReportCorporate Governance21/08/2016 Introduction(Gay & Simnett, 2010) Corporate governance is a system by which the companies get directed and managed and also covers the Board of Directors and relationship between the board of directors, management body and shareholders. The Board of directors whereas, include the CEO, CFO and a large portion of independent directors. It is important to note the different role played by different people in corporate governance. The board of directors is accountable to shareholders for making the overall business policies which runs the business activities such as safeguarding the rights of shareholders, fixing officer’s salaries, dividends, authorizing borrowings, making internal controls and calculating and assessing business risks. They also look after approving the financial reports. Therefore the directors need to be independent.