Susie Is an Auditor with XYZ Audit Firm

question 74

Multiple Choice

Susie is an auditor with XYZ Audit firm. The Senior Audit member has told her that all fieldwork must be completed by the end of the week. Susie knows that corners have been cut and certain tests not completed due to the time constraints. The integrity of the firm could be compromised. What should Susie do?

• A) Do nothing.
• B) Talk with the chain of command of the client to see that her concerns are dealt with.
• C) Follow the chain of command of XYZ to see that her concerns are dealt with.
• D) Talk with a reporter from the Wall Street Journal.

Grasp the concept and key factors of corporate social responsibility (CSR) in business practices.

Recognize the significance of corporate actions on stakeholders and the environment, emphasizing corporate social responsibility.

Evaluate business decisions through the lens of corporate social responsibility considering all stakeholders.

Identify and apply different ethical frameworks in analyzing business decisions.

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Definitions:

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus any depreciation, amortization, or impairment costs.

Acquisition Method

An accounting technique used to assess and integrate the financial statements of a company acquiring another company, focusing on the assets and liabilities acquired.

Consolidated Net Assets

The total assets of a parent company and its subsidiaries after eliminating inter-company transactions and balances.

Common Stock

Type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and share in the profits through dividends.