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    Audi

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    joseph
    The auditor of Games Limited must consider several ethical and legal factors when accepting the appointment. A code of ethics is important for the auditing profession to help auditors achieve the firm's objectives of risk control, quality assurance, and defining roles to prevent asymmetric information. Legally, the auditor must consider the company's completeness, competency, independence, asset risk mitigation, financial stability, management integrity, and transparency to perform tasks effectively and independently. The auditor should thoroughly research and investigate these legal, ethical, and other factors before accepting the role to ensure any risks are manageable.

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    Audi

    Uploaded by

    joseph
    20 views2 pages
    The auditor of Games Limited must consider several ethical and legal factors when accepting the appointment. A code of ethics is important for the auditing profession to help auditors achieve the firm's objectives of risk control, quality assurance, and defining roles to prevent asymmetric information. Legally, the auditor must consider the company's completeness, competency, independence, asset risk mitigation, financial stability, management integrity, and transparency to perform tasks effectively and independently. The auditor should thoroughly research and investigate these legal, ethical, and other factors before accepting the role to ensure any risks are manageable.

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    The auditor of Games Limited must consider several ethical and legal factors when accepting the appointment. A code of ethics is important for the auditing profession to help auditors achieve the firm's objectives of risk control, quality assurance, and defining roles to prevent asymmetric information. Legally, the auditor must consider the company's completeness, competency, independence, asset risk mitigation, financial stability, management integrity, and transparency to perform tasks effectively and independently. The auditor should thoroughly research and investigate these legal, ethical, and other factors before accepting the role to ensure any risks are manageable.

    Copyright:

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

    Audi

    Uploaded by

    joseph
    The auditor of Games Limited must consider several ethical and legal factors when accepting the appointment. A code of ethics is important for the auditing profession to help auditors achieve the firm's objectives of risk control, quality assurance, and defining roles to prevent asymmetric information. Legally, the auditor must consider the company's completeness, competency, independence, asset risk mitigation, financial stability, management integrity, and transparency to perform tasks effectively and independently. The auditor should thoroughly research and investigate these legal, ethical, and other factors before accepting the role to ensure any risks are manageable.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Question 1

    On accepting the appointment, the auditor of the Games Limited, the following
    ethical and legal factors should be considered. A code of ethics is important and useful in the for
    the profession of internal auditing of company’s accounts. The code of ethics helps the auditor to
    achieve the auditing objectives of the firm in risk control and management and the quality
    assurance of the company’s accounts. The roles should be well defined so that there is no
    asymmetry information regarding the code of conduct on the ethical issues of the company.

    On the legal framework, the auditor should consider the completeness of the
    company. This should include the competency and the independence of the company that allows
    the auditors to perform their task effectively and the level of the asset risks and how the risks can
    be mitigated. The other factors to be considered includes the financial stability of the company,
    the management integrity and transparency. This would help the auditors have the independence
    freedom on performing the auditor’s roles.

    The auditor should perform a thorough research and investigations on the legal,
    ethical and other factors mentioned above before taking the role of the auditor in the Gaming
    company. The risk associated with such appointment should be manageable to make the
    appointment a success.

    Question 2

    a)

    The other possible ways to mitigate the cash flow difficulties to maintain
    financial stability in the Z Pty Ltd are reduce the rate at which the company is spending, use a
    monthly business budget and stretching out payables. These conditions will fix the financial cash
    flow problems and increase the financial stability in the company.

    b)

    The evidence on mitigating factors above should be a key consideration in fixing


    the financial cash flows of the company. Reducing the spending of the company on nonessential
    activities can help audit the overhead accounts such as utilities and rent. This definitely increases
    the financial cash low of the company. On considering of the stretching of the payables the
    company can choose to pay certain expenses past the due date. This will help the company have
    a short term cheap financing to help solve the financial constraints. Applying the use of monthly
    business budget, helps the business to have a prediction model in which there are cycles that a
    company cycles follow. The company can have enough savings to cater for the future trends in
    which there is poor performance. The high revenue months should have should cater for low
    revenue months to solve the case of cash flow struggles within the company.

    References;

    Moizer, P. (1995). An ethical approach to the choices faced by auditors. Critical Perspectives on


    Accounting, 6(5), 415-431.

    Shaub, M. K., & Braun, R. L. (2014). Call of duty: A framework for auditors’ ethical decisions.
    In Accounting for the Public Interest (pp. 3-25). Springer, Dordrecht.

    Stein, J. C., Usher, S. E., LaGattuta, D., & Youngen, J. (2001). A comparables approach to
    measuring cashflow‐at‐risk for non‐financial firms. Journal of Applied Corporate
    Finance, 13(4), 100-109.

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