You are a staff of a firm with operations in various countries. In this firm in which you are based in, it is the local culture where bribery is normal. One day, you receive a gift, but no favors have been sought. Returning the gifts will offend the donor. 

 

Required: 

            

Explain the practice of gift giving and rationalize your decision based on the scenario.

 

You have just been a qualified CPA for a year. One day, you are asked to perform an audit of a small and medium sized manufacturing firm in the electronic industry. The manufacturer's procedures are specialized and complex. Most of its contracts are linked to the government, which requires the application of a specialized cost-accounting system. However, you have no prior experience in the electronics industry or with the specialized cost-accounting system. 

 

Required:

Based on the  scenarios, you are required to evaluate various options in dealing with this dilemma. (Note: you are to provide the pros and cons of each option of decision making.) 

Answer rating: 100% (QA)

Regarding the practice of gift giving in the local culture where bribery is normal it is important to note that in many countries gift giving is a com... View the full answer