Analyzing Professional Code of Conduct Breaches in Hillis and

Case Preparation Chart Case Title:Hillis and Alexander (HA)Short Cycle Process Who (name + position): Volunteer investigator for PCC What: Assess whether there were breaches to professional code of conduct Why: two complaints from different clients of HA When: May 22, 2023 - address ASAP How: Analyze the information presented to us and how to move forward (in this case, the how is not as important) *in the memo, address the BOD; goal - analyze the issues presented to us and propose recommendations/going-forward plan Case Difficulty Cube: (scale - 1 to 3) Analytical:3Conceptual:1-2Presentation:1 -nuances that you don't see often-spend the most time analyzing the issues and determining the recommendation-issues were conceptually common/unique-Presentation 1-2: well grouped, nothing missing, well referencedLong Cycle Process Assessment Opportunities (incl. sub-issues):(6 types) 1.Financial reporting -Revenue recognition -Borrowing costs treatment (interest expense related) -Treatment of investments -Capitalization of R&D costs -VOIP tech & Obsolescence of technology -Change in accounting policy 2.Audit and assurance -Independence - Familiarity threat -Classification issues -Audit/Client acceptance -Qualification of partner & audit staff -Loss of documents -Materiality -Weak internal controlsst 3.tax4.finance 5.Strategy and governance 6.Cost accounting = PM 7.Canadian auditing standards (CAS) - Objectivity, independence 8.accounting standards for various ASPE and IFRS II.quality management III.standards on firm ethics IV. Importance / Urgency: Assessment:IV Case data Missed deadlinesMoved offices + changes computer hardware = loss of documents CFO of audit client is partner'sdaughter Unqualified opinion Lack of training of employeesFinancial reporting trx details Staff qualificationsUnique to this case: IFRS + ASPE *who your client is working for, the industry, (private - ASPE) (public - IFRS) Lack of supervision by seniormanagementCompany - Increase shareholder value NPOs - add back to the community: not always earn profit - target = breakeven What are you making a decision about: alternatives = proceeds to hearing OR not proceeds to hearing