Case 13

Agustin, Angelica Mae

Barberan, Joy
Barcenas, James Louis
 Title

Summary
Mayfair Corporation is considering the use of electronic
data processing for their business transactions .
The Corporation requested Thea Mendoza, CPA to
conduct a feasibility study regarding the matter.
With Mendozas expertise and technical skills, he
completed the study and recommended that the
Company installs the computer and related equipment.
The Corporation accepts his suggestions and installs the
same.
 Title

Assumptions
Thea Mendoza is an independent auditor and
consultant who is not affiliated with any
accounting or consulting firms.
He serves asthe external auditor of Mayfair
Corporation and has performed audit
engagements for prior periods.
He knows or is related to the supplier that he
recommended.
 Title

Dilemma / Ethical Conflict

Whether his acceptance of the consulting services
engagement affects his independence in
expressing an opinion on Mayfair Corporations
Financial Statements.
Whether to accept or decline the commission for
recommending a local company as the supplier of
computer and related equipment needed.
Applicable Code of Ethics
Basic Principles
Integrity and Objectivity
Independence
Business-Conduct Standards