问答题
On behalf of Greenhill Consulting (青山咨询), write a short memorandum to the expatriate engineers (外籍工程师) of Unicorn Motor (麒麟汽车), to explain briefly to these engineers, the four basic elements of TQM, and the underlying principle of TQM. The memorandum should end with a reiteration of why it is so important to improve the quality of Unicorn Motor's products and that TQM is the best way to achieve that goal.
【正确答案】
To: Engineers, Unicorn Motor From: Greenhill Consulting Date: XX, September, 2011
Subject: Introduction of TQM
At the request of the Board of Directors, we are writing to you to briefly explain the four basic elements and the underlying principle of TQM. Finally, we would like to emphasize that, with the plan to further reduce the costs of the company's products, it is important that we implement measures that can maintain or improve the quality of the products. A decrease in quality, as the previous incident in 2009 proved, could have significant consequences on both the sales and reputation of the company. We consider that TQM is the best way to improve the quality of the products. If you have any question about TQM, please do not hesitate to contact us. Regards.
【答案解析】
问答题
On behalf of Yang (杨小兆), write an email to Mr. Ferguson, to (Ⅰ) explain whether Yang Call take up the offer of purchasing the car with a 50% staff discount; and (Ⅱ) whether Director Lee's son can remain in the audit engagement team.
【正确答案】
To: Mr. Ferguson From: XiaoZ Yang Dear Mr. Ferguson,
First of all, thank you very much for offering me a staff discount of 50% for the purchase of one of your company's showroom ears. I am afraid that I cannot accept your offer. This is because the CICPA's ethical guidelines set out rules that govern the auditor's business relationship with an audit client. In particular, he guidelines state that the purchase of goods and services from an audit client by the firm, or a member of the audit team, or a member of that individual's immediate family, does not generally create a threat to independence if the transaction is in the normal course of business and at arm's length. However, such transactions may be of such a nature or magnitude that they create a self-interest threat. The significance of any threat shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include : eliminating or reducing the magnitude of the transaction; or removing the individual from the audit team. Purchasing the car at 50% discount that is offered only to your company's staff is not an arm's length transaction. Since I am the engagement partner, I do not consider there are any effective safeguards that can be applied. Consequently, no matter how much I would like to purchase that car, I have to decline your offer. Secondly, thank you again for letting me know that one of the junior staff in the audit engagement team is the son of Director Lee. The CICPA ethical guidelines set out rules the govern family and personal relationships between the audit team and its audit client. In particular, the guidelines state that family and personal relationships between a member of the audit team and a director or officer or certain employees (depending on their role) of the audit client may create self-interest, familiarity or intimidation threats, the existence and significant of any threats will depend on a number of factors, including the individual's responsibilities on the audit team, the role of the family member or other individual with the client and the closeness of the relationship. The ethical guidelines further state that, when an immediate family member of a member of the audit team is: (a) A director or officer of the audit client; or (b) an employee in a position to exert significant influence over the preparation of the client's accounting records or the financial statements, on which the firm will express an opinion, or was in such a position during any period covered by the engagement or the financial statements, the threats to independent can only be reduced to an acceptable level by removing the individual from the audit team. The closeness of the relationship is such that no other safeguards could reduce the threat to an acceptable level. Since Director Lee is a director of the company and he is an immediate family member of the audit staff, I have to remove Director Lee's son from the engagement team because there are no other safeguards that could reduce the threat to an acceptable level.