Accounting Firm Case Essay

Case 1 Sunrise banking party recently appointed the accounting firm Smith, Godfroy, and Hannaford as the banks auditor. Sunrise quickly became one of Smith, Godfroy, and Hannafords largest clients. repress to banking regulations, Sunrise must provide for any expected personnel casualtyes on notes receivable that Sunrise whitethorn not collect in full. During the transmission line of the audit, Smith, Godfroy, and Hannaford determined that three large notes receivable of Sunrise seem questionable. Smith, Godfroy, and Hannaford discussed these loans with Susan Carter, ascendance of Sunrise. Carter assured the auditors that these notes were good and that issuers of these notes will be able to pay their notes afterwards the economy improves.Smith, Godfroy and Hannaford stated that Sunrise must record a loss for a portion of these notes receivable to account for the likelihood that Sunrise may never collect their full amount. Carter objected and threatened to dismiss Smith, Godfro y, and Hannaford if the auditor demands that the bank record the loss. Smith, Godfroy, and Hannaford want to keep Sunrise as a client. In fact, Smith, Godfroy, and Hannaford were counting on the revenue from the Sunrise audit to finance an expansion of the auditing firm.See more Defining research problem and setting objectives assayDiscussion questions 1. What is the ethical issue in this situation? 2. What atomic number 18 the choice decisions for Smith, Godfroy and Hannaford to consider? 3. Who are the stakeholders in this situation? what are the possible consequences to for each one stakeholder? Analyze from the following standpoints (a) economic, (b) legal, and (c) ethical. 4. If you were the auditor, what would you do? How would you justify your decision?Case 2 St Genevieve Pet usageum Company is an independent oil producer in truncheon Parish, Louisiana. In February, company geologists discovered a pool of oil that tripled the companys oil reserves. Prior to disclosing th e bracing oil reserves to the public, St. Genevieve gently bought most of its shares back from current shareholders. After the announcement of the discovery of new oil reserves, the companys share price increased from $6 to $27.Discussion questions 1. What is the ethical issue in this situation? 2. Who are the stakeholders? what are the possible consequences to each stakeholder? Analyze from the following standpoints (a) economic, (b) legal, and (c) ethical. 3. Place yourself in the role of decision maker. What decision would you have made?Case 3 incorporated Social Responsibility (CSR) is the most discussed and debated topic in todays business environment. Various arguments have been made regarding the relationship between firms affectionate responsibility and their monetary performance. One view is that firms face a tradeoff between social responsibility and financial performance. The contrasting view is that CSR improves firms financial performance ensuing in win-win model . The Baltazar, a chemical company, is considering whether it should maintain several(prenominal) socially trustworthy actions such as establishing environmental protection procedures, do extensive charitable contributions, promoting community development plans, and maintaining plants in economically depress locations.The CFO of Baltazar opposes such actions as he believes these actions deviate from the companys economic goal and they will negatively affect the companys financial performance. Discussion questions 1. Explain your view of the social responsibility. 2. What are the possible costs (benefits) of having a low (high) level of social reasonability to a company? 3. Do you think the company should continue or dis-continue these socially responsible actions?