Structuration Theory in Accounting Research †MyAssignmenthelp.com

Question: Discuss about the Structuration Theory in Accounting Research. Answer: Introduction AAA was founded in 1916 is based on reputable and rich history for holding premier community for the academic accountants. It has been seen that the diversity in the membership has been able to create environment by incorporating innovation. The main intention of the report has addressed the various types of the legal and ethical issues, which should be considered by the Miller Yates Howarth (MYH) audit division. The main consideration of the study has been based on the application of American Accounting Association (AAA), with the ethical decision for explaining the ethical concerns in the given study. The last part of the study has been related with the appropriate case law with the appropriate recommendations for the managing partners of MYH. As per the given fact MYH accounting firm operates in NSW and Queensland. Morgan Fertilizers Pty has been is considered with the long standing client of the company with the operations in Tamworth and Toowoomba. It has been further observed that Morgan Fertilizers has been recently able to change its contractor for the waste management to Dumparound Ltd. Jacqui leak has been further regarded as the senior auditor with the knowledge about the community activities and she is aware of the local council investigating of the Dumparound Ltd., for the concern of toxic waste in one of the sites (Davidson Stevens, 2013). The main consideration of the ethical issue has been further able to relate to Morgan Fertiliser for the change of the contractor to Dumparound Ltd., to do the evaluation of waste management. The important ethical consideration has been further raised the concern for the investigation of the Dumparound Ltd. based on the evel of toxic waste at one of its sites. The contract is seen to be based on the specification of the damages and it has not been signed by Dumparound. The contract is seen to be held substantially for 3 years and Jacqui particularly concerned about the implications (C. Graham, 2013). Identification of major principals and rules, values Apart from the various types of the prevailing ethical issues the main form of the legal issues has been seen to be based on the AASB 102 valuation of inventories. The valuation cost of the inventories has been recognized with the asset and the same needs to be carried forward for the revenue detection. The main form of the applicable code for the study is based on APES 110 Code of Ethics for Professional Accountants. The main applicable section under this has been further seen to be applicable as per the members of MYH, who are expected to support the legitimate and the ethical goals and relevant procedure in the organization (Kermis Kermis, 2013). The important specification of the alternatives has been based on evaluation of inventory adjustment with the inventories between the dates of physical count and end dates. The physical count should be recorded appropriately. Furthermore, the auditor is required to analyze the inward and outward movement in the stock as per the date of cut off. This date is further seen to be established as per the closing date of year (Roberts, 2014). The various types of the comparison of the values has been further seen to be considered with the application of APES 110 Code of Ethics for Professional Accountants, the main application of the sections with this rules has been identified with Section 310 conflicts of interest vs. AASB 102 on valuation of inventories. As per the APES ruling for the responsibility of the members it has been seen that the employing organization for this needs to comply with the fundamental principles which needs to comply with the fundamental principles of conflict. It is further seen to be regarded as providing the needs of the business as per the support of the employer and the rules and the procedures with the organization with the appropriate business concern (Shawver Miller, 2017). The main consideration of the rulings of AASB 102 is seen to be measured with the net realizable value or cost of an asset which needs to be considered with the evaluation off the relevant factors which involved in making the assets ready for use (Boyce, 2014). Identification of the alternatives access the consequences If inventory is overvalued, the net income should be overstated with relevance to the gross profit of the company. The overvaluation of the retained earnings needs to be considered as per the retained earnings. The equity value, total assets and the current assets needs to be overvalued in terms of the retained earnings (Cameron OLeary, 2015). The important from of the recommendation for Oasis Ltd. has been seen in bringing forward the relevant issues which is negligence charged in terms of the audit of MYH. Despite of this fact, the sole decision needs to be considered with the court decision which needs to deal with the case of where MYH may or may not be held responsible for the negligence (Tormo-Carb, Segu-Mas, Oltra, 2016). Based on the specific considerations of AASB 102 on valuation of inventories, the main complication with the errors pertaining to the valuation of inventories at the asset cost and the value carried forward with the recognition of the revenue. The measurement of the inventory needs to be further considered as per the realizable cost or value, which is lower. The inventory cost needs to be evaluated with the realizable cost or value, which is lower. The cost of the inventories needs to be considered as per the conversion cost, purchase and the cost which is seen to be incurred with making the asset ready for a specified purpose. It is further noted that the inventory cost may not be recoverable in case the portion of the inventory is obsolete or damaged. The inventory cost is not seen to be expected to be recovered in case it is as per the expenses of the completion or is seen to be assessed as per the sales policy which has been expanded. The important consideration for the recording is done for the inventories below the cost to the net realizable amount which is considered as per the reliable nature of the inventory. This should not be carried with the excess amount of the realization from the sales (Tweedie et al., 2013). In case the inventory has been overvalue, the net income and the amount of the gross profit, which needs to be overstated. The important impact of this may also lead to the total assets, retained earnings and equity of stockholder. The net income has been considered to be overvalued in terms of the inventory with a fewer number of the cost of the goods sold charged in terms of the revenue. The increased amount of the net profit needs to indicate the equity of the stakeholders and the retained earnings. The overvaluation of the inventory needs and the accounting period has been further seen to consider the beginning of the inventory with the finishing of the accounting period. This has been turned into starting inventory with the various types of the accompaniment of the time frame. The cost of the goods should be considered as per the COGS. As this value will be too be high and will be considered based on the period of the net income and consider the low amount of gross profit (David son Stevens, 2013). The given case of Morgan Fertilisers, has been able to identify the case with the high value of the inventory in the balance sheet as it was taken by Oasis Ltd., successfully. Despite of this factor, after two months, and the inventory of the company was overstated. It has been further discerned that more than 50% of the inventory was obsolete was not supposed to include the valuation count as per the inventory. The important consideration of the inventory needs to be based on the actual value. Furthermore, MYH needs to value the stock valuation of the management (Espinosa-Pike Barrainkua-Aroztegi, 2014). It is seen as the responsibility of the management of the physical conformation of the entity. The main duty of the management has been considered as per the checking of the inventories once in every year for establishing the financial statement formulation. The auditor needs to consider the various types of the considerations which are seen to be made for the physical investigation present to investigate the inventory and check for the survey of the system to record the changes based on the various types of the considerations made with the physical inventory (Vosselman, 2013). The auditor needs to be further present with the inspection of the inventory to check for the changes based on the dependability of such procedures. It has been further discerned that the auditor may not opt for the inventory count which might be available with the alternative measures and the adjustments made with the date of count which is recorded accurately(C. M. et al., 2013). The auditor needs to review the different types of the management and the information and the various types of the internal control with regards to the re-counting, identification of the obsolete and the non-moving or the rejected items. He also needs to consider the various types of the procedures for the valuation of the WIP and the movement of the inventory. The general rule of the auditor is not seen to be liable for the third party and clients (Horngren et al., 2015). The considerations which the company needs to take for the third party are shown below as follows: The declaration of the financial is not true The auditor has been seen to recklessly ignore the facts is seen to not true The various error has been seen to be committed during the preparation of the final accounts The various types of the negligence is seen to be based on the part of the employer of the auditor The preparation of the financial statement is done intentionally so the third party may be able to take appropriate action The consideration of the main case has been further seen to be based on Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (1997). Based on this audit report case it has been discerned that the after the incidence of default of payment, Esanda was able to claim to the auditors for the purpose of providing loan based on the audit report issued. This has been further seen to breach the various types of accounting standard which considered being mandatory in nature (Ocampo-Gmez Ortega-Guerrero, 2013). Conclusion As per the present case, the auditor at MYH has been able to verify of the stock information correctly and they have been also seen to accept the valuation. However, it has been observed that the management was not seen to consider this as the main reason behind stock obsolescence. Oasis Ltd. has been further seen to be considered under significant pressure for the audit completion within the limited amount of time. This is done for the completion of the audit in one month from the date in the balance sheet. It has been further discerned that can bring forward the various consideration of issues pertaining to negligence charged in terms of the audit of MYH. Reference List Boyce, G. (2014). Accounting, ethics and human existence: Lightly unbearable, heavily kitsch. Critical Perspectives on Accounting, 25(3), 197209. https://doi.org/10.1016/j.cpa.2013.10.001 Cameron, R. A., OLeary, C. (2015). Improving Ethical Attitudes or Simply Teaching Ethical Codes? The Reality of Accounting Ethics Education. Accounting Education, 24(4), 275290. https://doi.org/10.1080/09639284.2015.1036893 Davidson, B. I., Stevens, D. E. (2013). Can a code of ethics improve manager behavior and investor confidence? An experimental study. Accounting Review, 88(1), 5174. https://doi.org/10.2308/accr-50272 Espinosa-Pike, M., Barrainkua-Aroztegi, I. (2014). A Universal Code of Ethics for Professional Accountants: Religious Restrictions. Procedia - Social and Behavioral Sciences, 143, 11261132. https://doi.org/10.1016/j.sbspro.2014.07.565 Graham, C. (2013). Teaching accounting as a language. Critical Perspectives on Accounting, 24(2), 120126. https://doi.org/10.1016/j.cpa.2012.01.006 Graham, C. M., Kelly, P., Massey, D. W., Van Hise, J. (2013). One size does not fit all-different strategies for teaching accounting ethics. Research on Professional Responsibility and Ethics in Accounting. https://doi.org/10.1108/S1574-0765(2013)000017008 Horngren, C. T., Datar, S. M., Rajan, M. V. (2015). Cost Accounting: A Managerial Emphasis. Issues in Accounting Education (Vol. 25). https://doi.org/10.2308/iace.2010.25.4.789 Kermis, G. F., Kermis, M. D. (2013). Financial reporting regulations , ethics and accounting education. Journal of Academic and Business Ethics Financial, 115. Ocampo-Gmez, E., Ortega-Guerrero, J. C. (2013). Expanding the perspective and knowledge of the accounting curriculum and pedagogy in other locations: The case of Mexico. Critical Perspectives on Accounting, 24(2), 145153. https://doi.org/10.1016/j.cpa.2012.07.002 Roberts, J. (2014). Testing the limits of structuration theory in accounting research. Critical Perspectives on Accounting, 25(2), 135141. https://doi.org/10.1016/j.cpa.2012.12.002 Shawver, T. J., Miller, W. F. (2017). Moral Intensity Revisited: Measuring the Benefit of Accounting Ethics Interventions. Journal of Business Ethics, 141(3), 587603. https://doi.org/10.1007/s10551-015-2711-4 Tormo-Carb, G., Segu-Mas, E., Oltra, V. (2016). Accounting Ethics in Unfriendly Environments: The Educational Challenge. Journal of Business Ethics, 135(1), 161175. https://doi.org/10.1007/s10551-014-2455-6 Tweedie, D., Dyball, M. C., Hazelton, J., Wright, S. (2013). Teaching Global Ethical Standards: A Case and Strategy for Broadening the Accounting Ethics Curriculum. Journal of Business Ethics, 115(1), 115. https://doi.org/10.1007/s10551-012-1364-9 Vosselman, E. G. J. (2013). Accounting, Accountability, and Ethics in Public Sector Organizations: Toward a Duality Between Instrumental Accountability and Relational Response-Ability. Administration Society, 126. https://doi.org/10.1177/0095399713514844