Accounting Firm Case Essay

Case 1 sunrise slang recently appointed the accounting pixilated Smith, Godfroy, and Hannaford as the banks auditor. sunrise quickly became one of Smith, Godfroy, and Hannafords largest clients. showcase to banking regulations, Sunrise mustiness provide for either expected losses on notes receivable that Sunrise may not draw in full. During the course of the audit, Smith, Godfroy, and Hannaford determined that 3 large notes receivable of Sunrise count questionable. Smith, Godfroy, and Hannaford discussed these loans with Susan Carter, controller of Sunrise. Carter assured the auditors that these notes were good and that issuers of these notes leave be able to pay their notes later on 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 accumulate their full amount. Carter objected and threatened to dismiss Smith, Godfroy, and Hannaford if the a uditor demands that the bank record the loss. Smith, Godfroy, and Hannaford want to watch 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. push more Defining research business and setting objectives Essay intelligence questions 1. What is the honest issue in this situation? 2. What atomic number 18 the alternative decisions for Smith, Godfroy and Hannaford to consider? 3. Who argon the stakeholders in this situation? what ar the possible consequences to for each one stakeholder? try from the fol sufferinging standpoints (a) frugal, (b) legal, and (c) ethical. 4. If you were the auditor, what would you do? How would you confirm your decision?Case 2 St Genevieve fossil inunct Company is an independent anele producer in Baton Parish, Louisiana. In February, bon ton geologists discovered a pool of oil that tripled the conjunctions oil reserves. foregoing to disc losing the new oil reserves to the public, St. Genevieve softly bought most of its shares back from current shareholders. afterwards the announcement of the discovery of new oil reserves, the companys share scathe 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 consumption of decision maker. What decision would you have make?Case 3Corporate kind Responsibility (CSR) is the most discussed and debated topic in todays business environment. respective(a) arguments have been made regarding the relationship in the midst of firms social responsibility and their fiscal motion. nonpareil view is that firms face a tradeoff between social responsibility and financial performance. The contrasting view is that CSR improves firms financial performance ensu ing in win-win model. The Baltazar, a chemical company, is considering whether it should maintain several socially responsible actions such as establishing environmental resistance procedures, making extensive charitable contributions, promoting residential area development plans, and maintaining plants in economically downhearted 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 potential costs (benefits) of having a low (high) level of social reasonability to a company? 3. Do you think the company should poke out or dis-continue these socially responsible actions?