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    Group B Code of Ethics Caselet 245

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    BSA3Tagum Marilet
    This document contains 3 caselets related to evaluating situations regarding independence, integrity and objectivity based on the Revised Code of Ethics for Professional Accountants. The summaries are: 1) The first caselet describes a situation where an auditor appropriately brought off their responsibilities and there is no violation of ethics rules. 2) The second caselet involves an audit manager with a small investment in a client fund, but it is determined this would not compromise their objectivity or the firm's independence. 3) The third caselet involves an accounting firm loaning a senior accountant to an audit client temporarily, but it is determined this prior relationship would also not compromise the firm's independence for the subsequent audit.

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    Group B Code of Ethics Caselet 245

    Uploaded by

    BSA3Tagum Marilet
    149 views2 pages
    This document contains 3 caselets related to evaluating situations regarding independence, integrity and objectivity based on the Revised Code of Ethics for Professional Accountants. The summaries are: 1) The first caselet describes a situation where an auditor appropriately brought off their responsibilities and there is no violation of ethics rules. 2) The second caselet involves an audit manager with a small investment in a client fund, but it is determined this would not compromise their objectivity or the firm's independence. 3) The third caselet involves an accounting firm loaning a senior accountant to an audit client temporarily, but it is determined this prior relationship would also not compromise the firm's independence for the subsequent audit.

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    This document contains 3 caselets related to evaluating situations regarding independence, integrity and objectivity based on the Revised Code of Ethics for Professional Accountants. The summaries are: 1) The first caselet describes a situation where an auditor appropriately brought off their responsibilities and there is no violation of ethics rules. 2) The second caselet involves an audit manager with a small investment in a client fund, but it is determined this would not compromise their objectivity or the firm's independence. 3) The third caselet involves an accounting firm loaning a senior accountant to an audit client temporarily, but it is determined this prior relationship would also not compromise the firm's independence for the subsequent audit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    149 views2 pages

    Group B Code of Ethics Caselet 245

    Uploaded by

    BSA3Tagum Marilet
    This document contains 3 caselets related to evaluating situations regarding independence, integrity and objectivity based on the Revised Code of Ethics for Professional Accountants. The summaries are: 1) The first caselet describes a situation where an auditor appropriately brought off their responsibilities and there is no violation of ethics rules. 2) The second caselet involves an audit manager with a small investment in a client fund, but it is determined this would not compromise their objectivity or the firm's independence. 3) The third caselet involves an accounting firm loaning a senior accountant to an audit client temporarily, but it is determined this prior relationship would also not compromise the firm's independence for the subsequent audit.

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    Code of Ethics Caselet

    BSA-3
    Group B
    Bog-acon, Drexler
    Peñaflor, Marco Nico
    Tagum, Marilet

    Caselet No. 2
    Knowledge of the rules of conduct and related interpretations on independence,
    integrity, and objectivity will help you respond to the following cases. State whether
    the action or situation shows violation of the Revised Code of Ethics for Professional
    Accountants, explain why, and cite the relevant rule or interpretations.

    CPA Angela Carnice just bring off well on her responsibility and the
    situation has nothing mentioned about disobedience relating to
    independence, integrity and objectivity. Thus, the action does not show any
    violation to the Revised Code of Ethics for Professional Accountants.

    Caselet No. 4
    The accounting firm involved in this case wants to know if their independence will be
    questioned by the BOA. You have been asked to submit an analysis and conclusion.
    Franklin Rosario is an audit manager in the Salvador & Santos accounting firm. He
    has just been assigned to the audit of the Starex Money Market Fund. Franklin has
    maintained a money market account with SMMF since it opened in 2008. All his
    savings, amounting to 75 percent of his total assets, are in this account, which pays
    the highest interest available in money market funds. However, his account
    constitutes only .00001 percent of the fund’s assets.

    There will be no issue of self-threat here. The audit manager is not gaining
    financially from Starex Money Market Fund. In fact that he has money
    market account in the said entity means that the entity is a debtor to him.
    Nothing would compromise Mr. Franklin objectivity here. The
    independence of Salvador & Santos accounting firm would never be
    questioned by the BOA.
    Caselet No. 5
    The accounting firm involved in this case wants to know if their independence will be
    questioned by the BOA. You have been asked to submit an analysis and conclusion.
    Concepcion Esperanza Orozco & Co., (CEO & Co.) loaned a senior accountant to its
    audit client, United Furniture, Inc., for a six-week period ended June 15, 2013. United
    had converted its accounting system from manual to computerized processing as of
    January 1, 2013, and had experienced great difficulty. The senior accountant reviewed
    and analyzed the records and helped the new controller correct the accounts as of
    March 31, 2013, and to get the computer processing straightened out. The work
    involved collecting and summarizing data into machine-usable form and did not
    involve any managerial decisions about the manner of classifying or recording
    transactions. No one from CEO & Co.. was involved in the company’s accounting and
    bookkeeping after June 15., and the firm does not intend to provide such services to
    United in the future. The question of independence relate to the audit for the year
    ended December 31, 2013.

    SINCE no where in the case mention that anyone form CEO & Co. firm has
    a relationship to United Furniture Inc., no further conclusion to be made
    that such independence will be questioned by the BOA.

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