Audit, Internal Controls, & Code of Ethics
Discuss how disclosures of a code of ethics by senior management could have a positive effect on public confidence and influence investors’ behavior. Discuss the consequences of not establishing a code of ethics. Support your position.
Evaluate the importance of senior management in setting the tone for the application of the company’s code of ethics and promoting positive employee behavior, improved decision making, or the willingness to report unethical behavior of coworkers.
Recommend at least two policies that might encourage employees to report unethical behavior.
Imagine that you are a senior auditor, and your firm has been selected to audit a medium-sized company with a single location.
Provide an overview of the company.
Describe the four phases of an audit and discuss the key factors that would help you determine how to plan the audit for this company. Provide specific examples.
Determine both the relationship of risks in the planning of the audit and factors that influence those risks.
Speculate on which type of risk creates the most uncertainty for the auditor and recommend at least two ways to plan the audit to mitigate those risks. Provide specific examples.
