Question

Fatima Hassan is responsible for the collection, and auditing services of clients' accounts for the Doha Audit Office. Has been commissioned With a new client, Al Wajba Consulting Services Company, which contracted with the Doha Audit Office recently. Company CEO It is Mr. Ali Mahmoud, who monitors all operating activities of the company and takes all major decisions. Never use this company Previously, any services from the audit office. In addition to preparing the financial statements, the Doha Audit Office will handle the related matters Company taxes. On her first visit to the company, Fatima Hassan met Hala Abdullah, she was recently hired as an accountant and is still a student. Accounting last year at a local university. At a later meeting, Hala assured Fatma that she had found the job at the beginning of the class Scholastic after extensive research. She needs money to help fund her studies at university and feels lucky to have found A well-paid job during this current phase of the economic downturn due to the COVID-19 pandemic. Hala felt that Fatima was someone she could talk to and get advice from. Hala spoke of a situation she had in mind Some time ago. Hala concerns dealing with sales revenue. When the proceeds from sales are collected and deposited on a weekly basis, the necessary report is filled out with the most accurate categories of payment: cash, checks or credit cards. Distance Depositing the total amount on a weekly basis, Mr. Ali Mahmoud prepares a report after adjusting the total amount deposited by His own vision. After looking at some of the weekly deposits, Hala noticed that 20,000 Qatari cash were missing from each Deposit process. After a more comprehensive examination of the monthly tax documents that Mr. Ali filled out, Hala notes that the total income is the monthly amount reported to the Tax Authority is QR 80,000 less than the amount actually calculated. Professor Ali He is the only person to deal with the funds after they have been pooled. It is also the only person who deposits money on a weekly basis. When Hala asked Mr. Ali about the non-reporting of these unreported revenues, Mr. Ali replied that it was being done for tax purposes. It is believed that the auditor will accept this procedure because the fees of the Doha Audit Office are to implement Audit tasks and other tax services are paid by Al Wajba Consulting Services.

Study requirements: Each student must answer the following questions but each question should be answered at least 120 word for each question:

3. What are the alternatives available to Hala Abdullah, Fatima Hassan, and Professor Ali Mahmoud?

4. For each alternative dealt with in Requirement (3), are the net benefits exceeding the net losses for all the owners? Discuss your interpretation clearly

5. Whose rights will be violated in every alternative dealt with in Question 3? Discuss your interpretation clearly

can you answer number question number 5

Answer 1

3. Alternatives avalialable to: -

Hala - Since, hala already told about lower qatari cash receipt and lower income reporting to fatima. Its is better hala reach out to higher management in this case, since the lower income reportin is being done by Mr. Ali( who is a CEO). So, informing to fatima who is aexecutivr level employee will not work. Hala should report the matter to higher management.

Fatima: - Since, hala already informed her about the matter. First she should thoroughly check the facts and if she founds it legible then she should move to higher management and inform them.

Mr. Ali: - If its really a tax planning,state the facts clearly in a report and submit to management. If not, face the concequences.

4.) Benefits: -

To Hala: - If it is being proved that lower cash and income were reported then she saved company from such upcoming losses and embaressment. Because having such CEO who indulge in such activity would lead to fall of a company sooner or later.

To Fatima: - Being a senior, she should not take the matter light and make sure company doesn't end up having a loss.

Mr. Ali: - If found guilty, recover all the remuneration, incentives and bonus given to him and file a case against him.

5.) Mr. Ali: - His rights would be violated because having such a position in the organisation also comes great responsibility and distrust to the organisation would lead to termination and/or legal consequences.