Welcome to our Presentation

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Welcome to our Presentation

• HKSA Case Competition

Comprehensive Review on Ethical Dilemma in AP
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(No Transcript)
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Presentation Flow
PART I Non-Compliance Acts
Investigation by ICAC
PART II Conflict of Interests
Undue Dependence
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Core Principles (SAS 100 para. 6)
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Issue 1 Suspected non-compliance
Comparing Cost Reports and Tender Estimates
?
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Recommendations
Discovery of suspected non-compliance
Check financial statements - Real figures
reported?
Document the findings
Discuss with Management
Suggest remedial actions
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Report to Clients
Report to senior management
Non-compliance acts
Report to audit committee
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Internal Control Memorandum
Evidence of suspected acts
Internal Control Memorandum
Evaluation of risk exposure
Recommendations for remedial actions
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Audit Report
Audit Opinion
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WITHDRAWAL of ENGAGEMENT?
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Issue 2 ICAC Investigation
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Recommendation (SPE 1.204B)
Lack of authority of Davids investigation
Duty of confidence owed to clients
Clients
Alan should NOT disclose CEs information
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Remaining Issues
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Issue 3 Independence
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Recommendation
CEs project
HTs project
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Issue 4 Undue Dependence
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Recommendation (SPE 1.203(4))
Revenue
Close monitor
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Issue 5 Robins Wife Investing
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Recommendation
Major shareholder
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Issue 6 Tenancy Arrangement
Susan
A P
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Issue 7 HT Computer Project
(Robinson)
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Conclusion
Professionalism
Independence
Objectivity
Confidentiality
Integrity