Responses to Posts al Affiliation Responses to Posts Response to Post One shares similar contentionsto the relevance of the three (3) key insights which were selected: due care in the performance of professional responsibilities, responsibilities to clients, and ethics and tax services. As emphasized in the AICPA Code of Professional Conduct, accounting practitioners are expected to adhere by the guidelines and principles expected of the profession. The observance and knowledge of ethical standards, in addition to the basic rules, govern the ability for effective application in diverse situations. As noted, knowledge of applied business models that conform to accounting standards should have been integrated in the theoretical frameworks learned to ensure that false entries are ultimately avoided.
The experience at HealthSouth illumined the importance of acknowledging diversity in applied business models which should not be presumed as already conforming to accounting principles. The case highlighted the need for auditors to be more vigilant in discerning the application of business models which could hide erroneous entries and ultimately cause their reputations to be at stake. Response to Post# 2 The conflict of interests which were highlighted as one of the key insights learned was also affirmed as relevant.
In contemporary settings, one observed that despite knowledge of accounting practitioners to the governing rules stated in the AICPA Code of Professional Conduct, there still exists tendencies for lapses in application of some practices which lead to conflicts of interests. The rationale clearly explained the separation in duties and responsibilities was paramount due to the nature of accountability that the professional holds. These accountants and auditors should focus on financial duties to avoid situations where their professional interests are questioned as to the integrity and viability of accountability.
As to the understanding on the concept of tax shelters, it is actually a legal technique, not only for the wealthy; but for individuals and businesses, to reduce or minimize taxable income. One strongly believes that the techniques are varied depending on the respective accounts and expenses which could be eligible for minimization before the tax shelter concept could be applied. Response to Post #3 It was commendable to have recognized that the contents of the audit report was a key insight in this week’s reading.
A comprehensive understanding of the components assist in appreciating the importance of an auditor’s job in the light of accountability for ensuring that the organization being examined conforms to accounting principles and standards. One affirms the need to avoid violations, especially in recording false statements or maliciously intended transactions that aim to provide a padded financial condition than what the actual situation is. Like in the case of Tyco, the manner by which Kozlowski structured some transactions to be private to higher members of the echelon contributed to fraudulent activities.
If external auditors were more vigilant of examining related financial transactions undertaken by board members and those from the executive management team, the extensive amounts of money stashed away by these officers should have been checked and prevented. One believes that there could be apprehension to question the owners, senior management, or members of the board, since they are expected to adhere to codes of ethical standards and are least expected to use the organization’s financial resources for their own selfish interests. Response to Post #4 Acknowledging learning more on the topics of internal auditing, code of ethics, and corporate governance from the Institute of Internal Auditors (2014) is shared as paramount since these concepts form the theoretical frameworks for conformity to accounting principles and standards; especially in ensuring transparency and accountability of reported transactions.
The strongly recommended sections were likewise reviewed for an in-depth understanding of information contained in the position papers, practice advisories, as well as from the practice guides. One affirms that for interested practitioners who would like to learn more on internal auditing and corporate governance, they could learn from experiences from actual cases of contemporary corporations.
Just like the cases of HealthSouth, Tyco, and others where whistleblowing led to discoveries of violations are interesting to know. As such, one recognizes the importance of giving protection, and even incentives or encouragement, to whistleblowers, so that fraudulent activities would be ultimate abated. Reference The Institute of Internal Auditors. (2014). Code of Ethics. Retrieved from na. theiia. org: https: //na. theiia. org/standards-guidance/mandatory-guidance/Pages/Code-of-Ethics. aspx