question archive 4-21 Each of the following situations involves possible violations of the MIA’s By-Laws
4-21 Each of the following situations involves possible violations of the MIA’s By-Laws
Subject:AccountingPrice: Bought3
4-21 Each of the following situations involves possible violations of the MIA’s By-Laws. For each situation, state whether it is a violation of the by-laws. In those cases in which it is a violation, explain the nature of the violation and the rationale for the existing rule.
a. Razali Nordin is the partner on the audit of a nonprofit charitable organisation. He is also a member of the board of directors, but this position is honourary and does not involve performing a management function.
b. Ammar & Co., a CA firm, is incorporated to practice public accounting. The only shareholders in the firm are existing employees of the organisation, including partners, staff members who are auditors, staff members who are not auditors, and administrative personnel.
c. Fenn & Co., a CA firm, has a sophisticated network-based computer server that supports the firm’s technology systems and databases. Because of excess capacity available on the server, Fenn & Co. agreed to maintain on its server accounting records for one of Fenn’s non-public audit clients, Delta Equipment Sdn Bhd.
d. Gadafi, a MIA member has a law practice. Gadafi has recommended one of his clients to Dali & Co. Dali & Co. has agreed to pay Gadafi 10% of the fee for services rendered by Dali & Co. to Gadafi’s client.
