Generally, people have undisputed faith in travelling to their destinations by plane. However, terrible incidents can happen; may it be an emergency landing in waters or a plane that crashes into the World Trade Center in New York, people then start to feel anxious to fly. Due to this fact, many cancelled their flights to the US in September 2001 after the terrorist attack. The following questions thus arise: Is it even possible to cancel a flight based on “uncertainty” and will the ticket be refunded? First, it must be defined what kind of contract the purchase of a flight ticket is. In this case, it is a contract for the sales of goods and services according to art. 184 et seq. CO. A sales contract is a contract whereby the seller guarantees …show more content…
The relationship between SAirGroup and the consulting firm can be conceived as a principal – agent relation that has its basis in the provisions of an agency contract (art. 394 et seq. CO). An agency contract is a contract whereby the agent undertakes to manage certain business or provide specific services in accordance with the terms of the contract, whereby success is not guaranteed. (art. 394 para. 1 CO). In this case KMPG acts as the agent and engages in directing certain assignments by means of the terms of the contract. The agent is obliged to perform the affair entrusted to him by not deviating from the principal’s conditions except for the scope within the principal allows deviations (art. 397 CO). Moreover, the agent has the duty of faithful performance; otherwise he would be liable to the principal (art. 398 para. 2 CO). There is no further information about the accurate details of KPMG’s consulting activities. Respectively, the answer will be assumingly theoretical. KPMG will only be liable for their consulting activities if they did not conduct the business entrusted to them faithfully and with due diligence (art. 398 para. 2 …show more content…
394 et seq. CO. Generally, publicly traded companies must have their annual accounts and if applicable their consolidated accounts reviewed by an auditor in an ordinary audit (art. 727 para. 1 sec. 1 CO). SAirGroup was a publicly traded company; hence it had to call in an external auditor. The auditor has the duty that the financial statements of the company comply with the statutory provisions (art. 728a para. 1 sec. 1 CO). Furthermore, if the auditor supposes that there have been infringements of the law, the articles of association or the organisational regulations, it must inform the matter to the BoD (art. 728c para. 1 CO). Additionally, the court has to be notified, for example, if the company is clearly overindebted (art. 728c para. 3 CO). The auditor and all persons concerned in the audit are liable both to the company and to the individual shareholders and creditors for the losses arising from any intentional or negligent breach of their duties (art. 755 para. 1 CO). Mario Corti consciously brought in KPMG for PWC and they made corrections in the financial statements (NZZ, 03.10.2001). KPMG noticed that the debt of SAirGroup was even higher than detected in the first audit from PWC (BUERKLE & SMITH, pp. 6-7). The corrections KPMG executed seemed to be of legal
Ever since that fateful moment, citizens in America are on their toes every day worrying about another attack happening. United States citizens have had to adapt and change in response to this fear of further terrorist assault on our country. One of the ways they have adapted is by changing their means of security concerning airline travel. Before the attacks on September 11th, Americans were under the assumption that an individual or group of individuals could not do such a devastating thing to humanity. Prior to 9/11, there was a lack of security in airports and on airplanes.
Whether we would like to admit it or not there was a time, prior to September 11, 2001 when airline terrorism was a very real danger and it seemed as thought we averaged a hijacking or terrorist event every thirty days somewhere in the world. Gladly this wasn’t the case, in an online article I read there was a interview held with a person who spoke to my thoughts, he said “One example was a study I conducted on media coverage by the New York Times during a 17 -year, pre-9/11 period of 1978 to 1994. Among other things, I found that fatal airline events that involved jet aircraft that were hijacked, sabotaged, or destroyed by military action, which represented about 8% of the fatal airline accidents reported by the Times during that period, accounted for about 48% of all the airline accident articles in that period“ (T. Curtis, personal interview, September 11, 2009). Back then, it was easy to visualize a small suitcase being carried aboard an aircraft with a explosive inside, capable of ending the lives of everyone onboard men, women, and children; with no regard to age, sex, and religion.
The immediate financial repercussions of the terrorist attacks were astronomical. Makinen (2002) reports airlines received a $15 billion federal aid package. Additionally, insurance ...
Along with the low stock index numbers of September 17th, the airline industry and travel stocks were also rocked. One of several airlines announcing layoffs, US Airways said that they would be terminating 11,000 jobs. These heavy losses were contributed to airlines “being grounded last week [week of September 11th], plus passengers have been apprehensive to fly, in the wake of the hijackings” (Stock Markets Reopen 1).
There can only be so many changes to the audit process to prevent fraud. Regardless of the regulations that one may enforce, the audit process still comes down to human opinion. In a case like Satyam, an auditor performing their job to the highest standard would have most likely caught Satyam eventually. As stated in the case, misstatement of cash is one of the easiest fraudulent activities to catch. Simply requesting bank statements verifies the cash that the company actually owns.
The auditors in the ZZZZ Best case should be held liable for failing to uncover the fraud. It is the auditors responsibility to exercise due care and to investigate any red flags found during the audit process. AS 12 requires auditors to identify and assess risks to material misstatements. An examination of ZZZZ Bests internal controls should have exposed weaknesses that would have instituted further investigations. AS 15 requires the auditor to obtain sufficient audit evidence. In the ZZZZ Best case, the sole practitioner auditor relied solely on forged paperwork. If the auditor had ever visited an insurance restoration site it would have become obvious that the setup was a fraud. Even though ZZZZ Best was clearly engaged in illegal
XYZ agency is a preschool setting dedicated to help children and their families with kindergarten preparation, and the organizational structure that helps to contribute to the process is: nutrition health services, mental health services, family services, education services, outreach services, disability services, and social and emotional support. According to XYZ agency, their vision statement notes, is to provide resources for the evolving needs of community children and families, in support of efforts to achieve their goals. Services provided by the XYZ agency include: monitoring medical needs where the agency performs vision, dental, and hearing test. The agency provides training on health and wellness behavior management by funding
Corporate governance changed drastically after the case of Andersen Auditors, Enron’s auditing service showed that they contributed to the scandal. Andersen was originally founded in 1913, and by taking tough stands against clients, quickly gained a national reputation as a reliable keeper of the people’s trust (Beasley, 2003). Andersen provided auditing statements with a ‘clean’ approval stamp from 1997 to 2001, but was found guilty of obstructing justice by shredding evidence relating to the Enron scandal on the 15th June 2002. It agrees to cease auditing public companies by 31 August (BBC News, 2002).
The oversight responsibilities of the board, the CAE lacking of expertise or broad understanding of financial controls and responsibilities, and the understaffed internal audit functions lacking of independence and direct access to the board of directors contributed to the absence of internal controls. To begin with, the board should be retrained to achieve financial literacy to review financial reporting. Other than attending formal meetings, the board of directors should be more involved with the management. For the Audit Committee, the two members who were recruited as acquaintances to Brennahan need be replaced with experts who are more sufficiently knowledgeable about accounting rules beyond merely “financially literate”. Furthermore, the internal audit functions need to expand with different expertise commensurate with the expanded activities of the organization, testing financial reporting rather than internal controls from an operational perspective. The CAE should be more independent and proactive to execute audit plans, instead of following orders from the CFO, and initiate a direct and efficient communication between internal audit and audit
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
The issue in this case is whether there is a legally binding contract between Roland and Bernie. The things that needs to be considered is whether there is an agreement between Roland and Bernie. If there is an offer and acceptance, then there is an existence of agreement. According to Section 2(a) of the Contract Act 1950, offer can be defines as when one person implies his/her willingness to another in order to acquire their consent. (Abdullah et al, 2011) The person who make the offer is known as ‘offeror’ or ‘promisor’. (Lee and Detta, 2009) An offer can be made in the method of orally, by conduct, writing or by the mixture of these forms. An offer must require an effective communication with offeree. The formation of contract when offeree accepted the proposal. (Dass, 2005)
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
A valid contract is an agreement including promises made between two or more parties with an intention of certain legal rights and legal responsibility that are enforceable. For there to be a contract – that must contain four essential elements- offer, acceptance, intention to create legal relations and consideration.
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
While employment agencies can provide the above benefits to companies and job seekers alike, not all agencies are necessarily the right match. Depending on the needs, either as an employer or the job seeker, different agencies might be more suited for you. Therefore, you want to pay attention to finding the right match.