ACG6685 Florida Atlantic University Laws in Controlling Business Operations HW reply to the post below sources attached, do not just have yes or no answer

ACG6685 Florida Atlantic University Laws in Controlling Business Operations HW reply to the post below sources attached, do not just have yes or no answer give a thorough answer:

For a U.S-based accounting firm that audits a major foreign client that follows common business practices that are legal in their country of origin, but illegal and unethical in the United States it becomes a difficult situation with regards to the firm’s moral and ethical obligations. I believe that serving the public interest should be greatly considered when determining whether to follow U.S laws and regulations or the foreign country where the entity operates. If the audit is to be relied on for investments and compliance in the foreign country only, I believe that the U.S accounting firm should follow the guidelines that are considered legal in that country. This is due to the fact that users of financial information for that entity are aware and contracting within those guidelines so if the U.S standards were used it can cause confusion and misrepresentation of the financial statements. However, if the audit is performed to gain investors and contract in outside markets such as the U.S, the laws and regulations that apply in the U.S should be used.

When financial statements of foreign entities are also intended for use in the United States, the auditor should issue a U.S report with an emphasis-of-matter paragraph that:

Identifies the financial reporting framework used by the foreign entity
Refers to the notes in the financial statements that describe the framework; and
Indicates how this framework differs from the accounting principles accepted in the United States.

In the case of PwC being the auditor of Gazprom, PwC had an obligation to act independent in fact and in appearance. They did not have the best interest in mind for minority investors since they failed to disclose the related party transactions between Gazprom and Itera in their special audit. This was due to PwC’s interest to maintain principal owners of Gazprom happy and gain larger access to foreign clients. Due to this, PwC failed to uphold its responsibility to the minority investors since they failed to be objective and independent. Purchase answer to see full
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