Question.985 - INSTRUCTIONS The critique should be between 1000 and 2500 words, twelve-point type. The student will claim the work to be critiqued by a posting in reply to the selected student’s work. The critique will consist of a thread in reply to the selected student’s work. A proper critique will address each item in the Case Analysis in order, starting with the Case Summary, stating whether you agree with the posted work and adding such comments as you think will add to the Case Analysis. Each question must be written and addressed separately. The Statement of Christian World View must be commented upon. If an item (Case Summary, question or Statement of Christian World View) was omitted, you must supply the missing item. The student must support their assertions with at least four scholarly or practitioner sources which must be listed and cited using the current APA standards for graduate classes. Acceptable sources include both refereed scholarly journals, practitioner journals and textbooks.
Answer Below:
Considering the summary of the case it involves PwC's role in supervising the voting process for the 2017 Academy Awards (Oscars) and the following mishaps during the announcement of the Best Picture award; while the background of the case study details with PwC was in charge of assuring precise vote tallying and combating fraud throughout the Oscars voting process; while during the live broadcast, PwC partner Brian Cullinan accidentally gave an incorrect envelope to the presenter, resulting in the erroneous Best Picture winner being announced (Knapp, n.d.). Considering the type of professional service, PwC's connection with the Academy Awards is an assurance engagement, while?PwC was hired to conduct an impartial and unbiased evaluation of the voting procedure in order to assure its correctness and authenticity. The International Auditing and Assurance Standards Board (IAASB) standards for assurance services are among the professional standards that apply to such engagements (Knapp, n.d.). In terms of control elements to improve the integrity, PwC, and the Academy should implement additional safeguards to ensure the selection process's integrity, while transparency regarding the voting process may be improved in order to foster confidence (Knapp, n.d.). Furthermore, strict rehearsals, independent monitoring of the envelope-handling process, and the inclusion of a third partner in the broadcast authority room might improve control efficacy even further; these measures are thought to be cost-effective and easy to install (Knapp, n.d.). In terms of ethical issues and branding activities by accounting firms, the discovery that the Academy's chief financial officer's husband worked as a PwC partner raises significant ethical concerns about conflicts of interest, and to ensure neutrality and impartiality, it is critical to identify and minimize any potential conflicts of interest prior to starting assurance engagements (Arens et al., 2017). The major accounting companies participate in a variety of branding efforts; these include sponsoring big athletic events, supporting financial literacy programs, and connecting with society's richer parts. These actions assist in increasing the exposure, repute, and networking prospects of the businesses' brands. Analyzing the case study in terms of Christian Worldview: it is emphasized in James chapter?5, verses 16 to 20, that confessing sins and praying for one another can offer healing and restoration; this verse encourages?Christians?to support one another in their efforts to turn away from immorality and bring others towards to the truth. As a result, it is critical to recognize PwC's repentance and to provide them with encouragement and prayers (Knapp, n.d.). While in addition to the understanding from James chapter?5, verses 16 to 20, as a result, acknowledge your sins to one another and pray for one another in order to be healed. A decent person's ardent prayer is highly strong and anyone who turns a sinner back from the error of his way will save his soul from death and cover a multitude of sins. Question 1: What type of professional service is the Academy Awards vote tabulation engagement? Which professional standards apply to such engagements? The Academy Awards vote tabulation engagement is a type of assurance engagement; wherein PwC is offering an impartial judgment on the correctness and integrity of the voting process and outcomes in this regard such that this viewpoint strengthens the Academy Awards selection process's legitimacy and dependability (Jonick & Benson, 2018). While on the other hand, auditing standards produced by the International Auditing and Assurance Standards Board (IAASB) are among the professional standards which are?applicable to these kinds of engagements, and the intended?guidelines outline the auditor's duties, ethical concerns, audit processes, and reporting obligations (Knapp, n.d.).? Question 2: Identify controls, in addition to those mentioned in this case, that PwC and the Academy could establish to enhance the integrity and apparent integrity of the Academy Awards selection process. Would these controls be cost-effective? In addition to the new controls you identified, what other changes could be made in the Academy Awards selection process to enhance its credibility? In accordance with the safeguards discussed, I would like to discuss some of the potential ways to sustain?the integrity of the Academy Awards selection process:?Firstly, an independent review process, wherein hiring?an independent third-party auditor to conduct an audit of the vote counting process, adding another layer of scrutiny and accountability (Gill et al., 2021). Secondly, work on instilling?transparency by providing a piece of greater information to the public about the voting process, particularly information on how votes are gathered, processed, and audited; this would serve to create confidence and eliminate any doubts about the procedure's legitimacy (Arens et al., 2017).?Thirdly, engagement partner rotation, by rotating?the PwC partner in charge of the Academy Awards engagement on a regular basis to minimize any potential familiarity risks or undue influence (Hepp, 2018). Question 3: PwC reportedly uses the Academy Awards engagement as a way to enhance its "brand." Identify other branding activities used by the major accounting firms. Which of these activities do you believe are most effective? Identify branding activities used by other organizations that would not be appropriate for accounting firms to employ. In order to counter the perspective discussed, it is important to improve their brand's reputation and exposure; major accounting companies participate in a variety of branding efforts, wherein?accounting businesses frequently sponsor big events, sports competitions, cultural festivals, or philanthropic projects in order to associate themselves with respectable organizations and display their community commitment (Hepp, 2018; Knapp, n.d.). Secondly, work on thought leadership, wherein they can indulge in activities like publishing articles and research papers and holding webinars or conferences to demonstrate competence and establish themselves as an industry thought leaders and corporate Social Responsibility initiatives in terms of?supporting charitable organizations and participating in monetary awareness, education, and sustainability projects (Arens et al., 2017; Knapp, n.d.). Some branding initiatives, nevertheless, may not be acceptable for accounting businesses. Engaging in contentious sponsorships or sponsoring polarizing political campaigns, for instance, might harm the firm's reputation for impartiality and neutrality (Jonick & Benson, 2018). Accounting businesses must?endeavor?to maintain a professional and objective image in order to maintain public trust in their services. Question 4: Following the 2017 Academy Awards ceremony, media reports revealed that the spouse of the Academy's chief financial officer was a PwC partner. What ethical issues, if any, did that circumstance pose for PwC in its relationship with the Academy? In order to provide a counterargument to what was discussed, the fact that the Academy's CFO's husband is a PwC partner poses significant ethical concerns: Firstly, conflict of interest, wherein?the PwC partner's relationship with the Academy's CFO presents a possible conflict of interest and?stresses or impressions of?favoritism?regarding their spouse's organization may put the partner's objectivity and independence at risk (Jonick & Benson, 2018). Secondly, it impairs professional skepticism such as?due to a personal connection with the Academy's CFO; the PwC partner might not exhibit the requisite professional?skepticism?in executing the engagement that, leads to the third ethical concern, which is hampering independence, wherein the PwC partner's independence could be challenged since they have a strong familial relationship to a top executive inside the Academy (Arens et al., 2017; Knapp, n.d.). This might involve reassigning the partner to a new engagement or developing explicit standards and processes for dealing with such circumstances while at the same time maintaining the integrity and reputation of the auditing profession requires ensuring independence and avoiding conflicts of interest. References Arens, A. A., Elder, R. J., Beasley, M. S., & Hogan, C. E. (2017). Auditing and assurance services (Sixteenth). England: Pearson. Bitter, M. E. (2001). Principles of Auditing and Other Assurance Services. Gill, G. S., Cosserat, G., Leung, P., & Coram, P. (2021). Modern auditing & assurance services. Wiley. Hepp, J. (2018). ASC 606: Challenges in understanding and applying revenue recognition. Journal of Accounting Education, 42, 49-51. Jonick, C., & Benson, D. (2018). The New Accounting Standard for Revenue Recognition: Do Implementation Issues Differ for Fortune 500 Companies?. Journal of Corporate Accounting & Finance, 29(2), 22-33. Knapp, M. C. (n.d.). Contemporary auditing. Cengage Learning.More Articles From Accounting
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