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Accounting Assignment Question
Write a detailed auditing assesment on the coca cola company in Australia
Accounting Assignment Solution
In all the decisions of business, there is presence of some ethical element involved. These decisions have impact on the stakeholders of the company in various ways as the ethical values are expressed in different manners (CPAAustralia, 2016).
In the case given, the invoices are provided to the auditor for verification of acquisition of plant and machinery and equipment. However, while scanning the invoices of material which were included in building of warehouse, it was noticed that there were number of invoices of bathroom fittings. However, there was no bathroom facilities at the warehouse and the accountant has approved these invoices. Furthermore, the budget to audit is tight, thus increasing pressure to complete the verification within the limits.
This report has been prepared to discuss the ethical issues in the given case. The case is analysed in the light of American Accounting Association Model and Code of Ethics for Professional Accountant in order to identify the ethical issues that are required to be addressed.
American Accounting Association Model
American Accounting Association Model is a seven step model of ethical decision-making which ensures that the ethical issues and concerns are taken into consideration while taking decision by the management of any enterprise (ACCA, 2015). In the given case, the situation is analysed using this model and accordingly the decision will be taken on the matters that are required to be addressed.
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