question archive CASE ANALYSIS    Read and analyze the case and answer the requirements below

CASE ANALYSIS    Read and analyze the case and answer the requirements below

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CASE ANALYSIS 

 

Read and analyze the case and answer the requirements below. 

 

1. Jesse is a trainee accountant in his second year of training within a small practice. A more senior trainee has been on sick leave, and Jesse is due to go on study leave. He has been told by his manager that, before he goes on leave, he must complete some complicated reconciliation work. The deadline suggested appears unrealistic, given the complexity of the work. 

 

He feels that he is not sufficiently experienced to complete the work a l o n e. He would need additional supervision to complete it to the required standard, and his manager appears unable to offer the necessary support. If he tries to complete the work within the proposed timeframe but fails to meet the expected quality, he could face repercussions on his return from study leave. He feels slightly intimidated by his manager, and also feel pressure to do what he can for the practice in what are challenging times. 

 

Required: 

  1. Give at least three (3) key fundamental principles affected in the case above. Explain your answer.
  2. If you were Jesse, what possible courses of action are you going to take concerning the fundamental principles affected?

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  • Give at least three (3) key fundamental principles affected in the case above. Explain your answer.
  1. Professional Competence and Due Care - Since Jesse admits that he is not sufficiently experienced to complete the work by himself, the quality of the possible output might be compromised. Professional Competence means that a professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques. Of all the fundamental principles, this is the one that will be most affected in the case.
  2. Integrity - If Jesse tries to complete the work within the proposed timeframe but fails to meet the expected quality without supervision and without asking for his senior/manager's supervision, he is putting his integrity at stake. Integrity requires accountants to be straightforward and honest in all professional and business relationships. Integrity also means that members must not knowingly be associated with misleading information. 
  3. Professional Behaviour - Submitting an output which Jesses believes is not of good quality may pose concerns and result to a bad reputation not just for him who prepares it but also for the team and the firm as a whole. Professional behavior states that accountants should comply with relevant laws and regulations and avoid any conduct that the professional accountant knows or should know might discredit the profession.
  • If you were Jesse, what possible courses of action are you going to take concerning the fundamental principles affected?

Below are possible courses of action Jesse can take:

  1. Utilize the available internal and external resources to study the materials related to the account and procedure he have to perform.
  2. Re-checked his workpapers/documentations and ask his politely ask his senior/manager if he have the time to review his work. If he also has other team members who he can consult like an experienced associate, a senior-in-charge or a prior year's team member who perform the same task.
  3. He may refer to prior year's documentations to checked the process performed but also ensure that the relevant information were up-to-date and that the process performed is sufficient in case there are additional actions needed to be performed.
  4. If possible and if the output is not urgent, he may politely ask for an extension to make sure that his work is complete.