Accounting Information For Decision Making

Question: Discuss about theAccounting Information For Decision Making. Answer: Ethical/Procedure Issue- Competence Application on case: Competence is about maintaining professional knowledge and skills while handling clients work and also in accordance with technical and professional standards. In this case, Li should examine all the previous year filings and documentation to make justice with current year accounting procedures. Joe have asked to file return for Casa Joe caf but no details are shared about the firm through which it operates (Roberts 2015). Li should act diligently not to proceed without clear understanding on parent or guardian firm. Ethical/Procedure Issue- Objectivity Application on case: As per this case, since Li is friend to Joe, there may be biasedness or undue influence on preparation of tax return or other compliance work. Li should not let any conflict of interest occur because objectivity should not be compromised in terms of managing financial interest and faithful reporting as per law. Ethical/Procedure Issue- Integrity Application on case: During the process of return analysis, preparation and filing, Li should leave behind the angle of friendship and rather, she should act professionally and business relationship should not be straightforward and honest (Hudon and Sandberg 2013). Since the move is from Brisbane to Sydney, angle of business based taxation and registration of the business should be in Lis calculation for clarity of reporting and as per legality of the business location. Ethical/Procedure Issue- Ethical Behavior Application on case: Act of ethical behavior is crucially important dealing specially dealing the matter of finances and taxes, which are to be paid to the government. When Joe told Li to ignore cash withdrawals, which was part of business proceedings, Li, should think as per ethical code of conduct and react accordingly (Shin et al. 2015).There should be questions on the cash withdrawn were used personally rather than business need. Ethical/Procedure Issue- Superseding Previous Accountant Application on case: When the accounting partner changes and previous accounting work is transferred, due care is required to examine prior year returns and filing status should be checked with the client and government. This is a mandatory check to comply with the legal requirement. Li should check in with previous accounting firm of Joe to see are there any other important information, which was ignored in the past. Ethical/Procedure Issue-Engagement letter Application on case: As an initial matter, the engagement letter should identify the client whose interests are being represented. (Jensen 2013). In representing a business organization, particular care should be taken to explain to the constituents of the organization that the organization is the attorneys client where the interests of the organization may not be aligned with those of the constituents. Ethical/Procedure Issue-Technical and Professional Standards Application on case: The purpose of the standards is to: define the capabilities (performance, knowledge and understanding) required to operate as an IT professional make it easier for employers to describe job roles, externally and internally provide a standard taxonomy for recognizing the skills levels of employees and setting development objectives enable the benchmarking of degrees and training courses against employer needs Provide guidance to regulators when accrediting qualifications. Ethical/Procedure Issue- Legal work Application on case: All workers, regardless of their field or profession, operate within a legal and ethical framework of some kind. This simply means that we all work within the boundaries defined by applicable laws and ethical standards (Shin et al. 2015). Policies and procedures are developed in response to the organizations legal obligations. Ethical/Procedure Issue-Client Evaluation/Quality Control Application on case: For any evaluation there needs to be clarity about what will be considered a quality and ethical evaluation..Many organizations have guidelines, which address issues of quality and ethics together (Hudon and Sandberg 2013). Properly understood, ethics is the study of right and wrong, while morality is the degree to which one behaves in an ethical way. Ethical/Procedure Issue-Public interest Application on case: The public interest' is used by many to justify a wide range of actions and proposals. However, it is often unclear (even to those using the term) what they mean by this, and there can be a natural suspicion that the phrase may be used as a smokescreen to garner support for something that is actually in the advocate's own interests. Incorrect Tax Returns: Application on case: An individual earning beyond the taxable limit is required to file tax return in the electronic format. It is assumed that the prevailing a confusion between the assessment year and financial year. It is observed several taxpayers while filing income tax return file that wrong assessment year (Erard et al. 2014). Understanding Income Under Current Year: Financial year is the year in which an individual has earned an income. When an individual is required to submit the income for which it has been earned it is known as income under the current year while the following year is known as assessment year. Several taxpayers are confused between the assessment year and the financial year prior to the filing of income tax return. Financial year can be understood as the year in which income is earned for filing of income tax return. Reference List: Erard, B., Langetieg, P., Payne, M. and Plumley, A., 2014.Missing Returns vs. Missing Income: Estimating the Extent of Individual Income Tax Filing Noncompliance From IRS and Census Data. Working Paper. Brian Erard and Associates. Accessed online at https://www. brianerard. com/wp-content/uploads/2015/01/advances_nonfiling_measures. pdf. Handelman, A.G. and Ellis, J.B., 2015. Overview of Tax Laws Affecting the Disposition of Estates.California Wills Trusts,1. Hudon, M. and Sandberg, J., 2013. The ethical crisis in microfinance: Issues, findings, and implications.Business Ethics Quarterly,23(04), pp.561-589. Jensen, J.V., 2013.Ethical issues in the communication process. Routledge. Roberts, L.D., 2015. Ethical issues in conducting qualitative research in online communities.Qualitative Research in Psychology,12(3), pp.314-325. Shin, Y., Sung, S.Y., Choi, J.N. and Kim, M.S., 2015. Top management ethical leadership and firm performance: Mediating role of ethical and procedural justice climate.Journal of Business Ethics,129(1), pp.43-57.