EGT1 Task 3

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Interests: Shareholders hopes to see growth in SCE’s stock price and for the company to exceed Wall Street’s expectation.

Impact of Decision: The shareholders may develop a lack of trust in SCE’s reporting practices, or may see substantial fluctuation in SCE’s stock price.
Interest: Both Levin and Goldberg aspire to maximize SCE’s stock value and exceed investors’ expectations while staying within the boundaries of the law. In addition, they are motivated to build their personal wealth and status amongst top executives in the industry.

Impact of decision: They may upset the shareholders so their reputations, credibility, and jobs are on the line.
Interests: The Board of Directors want to ensure that SCE is in good financial health and …show more content…

In addition, Gilmore could be looked at by the AICPA and the State Board of Accountancy for her actions.
Interest: The internal auditors ensure that SCE’s financial statements are prepared in conformity with GAAP and ethical standards.

Impact of decision: There is a potential for a material misstatement due to a lack of recording or disclosure which would be an audit failure on their part. This would lead to the auditors potentially losing their jobs and discipline from the state board.
Interests: The external auditors ensure that quarterly and annual financial statements are prepared in accordance to GAAP and that they themselves and the company follow professional standards
.
Impact of decision: They may loss SCE as a client, lessen the reputation of their firms attest services, and potential financial punishment from regulators.
Interest: The committee’s goal is to select a quality auditor and ensure trustworthy financial

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