Question

identify what you believe is an ethical concern or potential for fraud related to partnerships and/or partnership accounting. Provide a detailed description of the ethical concern or potential for fraud that you have chosen and provide justification/reasoning for your selection.

Answer 1

SOLUTION:-

I think method of converting one currency to another is an ethical concern or potential for fraud velated to foreign currency trans actions of foregin currency finalcial statement.

As all of you might be a ware that as per accounting principals, we need to translate our foregin currency transactions at spot rate or reinstate foregin currency liabilities and assets, as on balance sheet date. i,e. All the liabilities or assets which are fixed under a contract and due in foregin curreny and should be assets, or liabilities have to be reinstated at the rate which is prevailing as on balance sheet date.

Option to select conversion rate lies with the organisation. Convesion  rates get, changed in every minute of time. so by fluctuation the conversionrate, one can over report or under report its income, expense, assets, and liabilities. Based on this phenomina I think this is an ethical or potential for fraud related to foregin currency trasactions.

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