California Baptist University Earning Management & Ethical Practice Questions in simple words and in datils mention the reference intext or out text.there

California Baptist University Earning Management & Ethical Practice Questions in simple words and in datils mention the reference intext or out text.there is a plagiarism checker. Section B
Mariam CPA is the accountant of a public listed company. She just completed meeting with
Salman, who is the Chief Financial Officer (CFO) of the company. Salman tried to convince
Mariam to go along with proposal to combine the revenue expenditures (15 various revenue
expenditures such as repair of motor vehicle, fuel expenditure etc.) related to vehicle
maintenance into one amount (OMR 40,000). Mariam knows that OMR 40,000 is a material
amount to earnings and rules in accounting require the expenses related to day to day
operations for a specific period should be linked to revenue generated for the same period.
Which will yield the most accurate income statement result. Therefore, Mariam asked time to
think about this matter.
However, at the end of the meeting Salman stated, “Mariam, you can get back to me tomorrow
on how you are going to work it out. But keep in mind that you should act upon the request of
management. Therefore, I really want you to act in favour of my proposal to capitalize the
revenue expenditure to boost the earnings and meet the earnings expectation of financial
analyst. This statement shows that Maryam is under great deal of pressure to fulfill the
requirement of Salman. Further Salman informed that adjustment on accounting entries will
help to provide for a bonus to management including herself.
Assume you are in Mariam’s position
Critically evaluate the given scenario and provide the possible course of action that
should be taken to resolve the ethical dilemma.
Note: your answer must include the
0. key fundamental ethical principles for accountants that are more relevant for the given
scenario
2
threats to independent faced my Mariam
ethical issue faced by Mariam in the given scenario
the stakeholders who will affected due to the given practices and who are the people
Mariam can get connected to resolve the ethical issue.
the possible course of action that should be taken to resolve the ethical issue
(Total 40 marks)
(Maximum word count – 800 words)
Section A-Two compulsory questions
كبار رجال الاعمال
Warren Bufret, one of the business tycoons in present era said, “Managers that always promise المدراء الی بود
Question 01
”
to make the numbers’ will at some point be tempted to make up the numbers”. The statement
emphasis of having ethical persons as head of companies. If the CEO and strategic level دسو الارقام درد الايام رايع
, هاروو
صحة بدقواري
ام
تكون أوصل هالد
من الواقع الادارة
اه مع أقلة
سياسة
ook house management
who practices fraud, they can twist earnings to make them look better than they
really are, thereby deceiving the users of the financial statement.
a) Discuss the motive for earnings management with suitable examples
(20 marks)
(Maximum word count – 400 words)
b) Evaluate earnings management from the utilitarian perspective. Can earnings
management be an ethical practice? Explain why or why not.
في إدارة الأرباح
الشقة هل من
تكون إدارة الأرباح هماره
(10 marks)
انو لماذا أوام
(Maximum word count – 200 words)
Question 02
Assume you are facing an interview at an audit firm. A member of the interview panel asked
you to justify the link between, moral intensity, ethical leadership, and organizational culture
and how it will impact on the accounting firm?
Craft a response that you feel comfortable by describing the characteristics of ethical
leaders, the role of moral intensity in developing ethical organisations and evaluating the
importance of ethical leadership in accounting firms with suitable examples.
30 marks
(Word limit – 600 words)

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