To receive a compliant with Generally Accepted Auditing Standards (GAAS) it is required for Green and Associates to decide that the accounting activities indicate that there are or are not material misstatements compared to the financial report in the fiscal year and risk assessment problems in regarding the internal control methods are sufficient. Forevermore, the fact that Green was not provided the chance to review internal controls. Green cannot be able to execute a full audit in accordance with GAAS.As of GAAS, Green and associates is required to report the accounting activities with reporting their opinions paragraph due to the fact that the fiscal reports do not comply with GAAP standards.
Also the accounting rules are not in uniform within the present time compared to earlier periods of time. They are not able to finish the audit of internal controls because the GAAS auditors should be providing material to guarantee honestly of the reports and convey any issue that come up, such as scams, mistakes, and unlawful activities, without being provided with a chance of internal control auditing for this time.Green and associates are not able to use correct auditing methods.
Ethical Issues ABC declined to have Green to audit of internal controls. However, the CFO thinks the current internal control auditors are adequately strong, authorization from a professional will increase dependability of internal control too much. Also leads to improving the controls. It is a professional that can help with auditing and it is Green and Associates to interact with earlier auditors will complete the audit when it is necessary.Green must check for any policies and process in place to provide suggested to help the auditors.
In case on exists, Green must look for gaps in the financial statements or the audit reports. Green and Associates are a loud to speak with ethical team that is the auditing committee and CFO if they are available to come up with an ethical agreement. When the opinions of audit is not agreeable then Green must go ahead and take net measure to escalate the disagreement to the board of directors.Therefore after, escalating the problem to the board of directors, Green must take measure to see if the problem still continues or it has been fixed. In case Green is pleased with the outcome of the decision.
Green can go ahead accordingly with their report and hopefully close the case. However, when the results in this position are not up to the satisfaction levels, Green must take considerable measures until Green and Associates comes to a completely independent view with the company and their ethical opinions.As per rule of the AICPA section 102 this law to forbid a member of the company from intentionally misrepresenting details in order to subordinate his/her decision while carrying out his professional service.
Green must make certain that there’s no misrepresentation of facts or commission of disclosure in fiscal reports. Only if there’s authoritative support any deal or treatment in fiscal reports provided. Green is responsible to proceed and provide his/her professional point of view concerning the accounting systems ABC Corporation to follow. ConclusionGreen and Associates is responsible to do the audit of the ABC Corporation in agreement with GAAP and GAAS, to incorporate abiding by SOX laws, regulations, and rules. When having a negative audit view, Green and Associates declare the misstatements impacting the fiscal reports are not realistically shown for this reason, interfering with Green and Associates to correctly audit.
Green and Associates will be in compliance lawfully and professionally when they decide to offer a negative of new. Reference As per rule of the AICPA section 102; (2012) www. aicpa. org/research/standards/codeofconduct/pages/et_102. aspx