Group Name : Unqualified Opinion
Reason :
Opinion is given when the audit was
conducted in accordance with auditing standard, auditor found no material
errors overall financial statement or not there is a deviation from generally
accepted accounting principles (GAAP).
We chose this name because the
Unqualified Opinion given meaningful financial statements have been implemented
and in accordance with auditing standards and it was very good.
Members of the group :
1. Della
Irfianis (21211825)
2. Dika
Aryani ( 22211075)
3. Elizen
Bunga ( 22211409)
4. Mita
Kurniasih (24211511)
5. Sofiyasmin
Ramadani (26211846)
Problem
Cases Bhopal Union Carbide
1.
What are the ethical issues raised by
this case?
Answer:
Ethical Issues:
a) Company Manager gave less
guidance to the community around the factory of pesticides so that many
residents who build shacks around the plant.
b) Chairman eliminate money for a
few years.
c) The shareholders was angry
because they had suffered losses of more than $1 billion.
2. Did the legal doctrine of "limited
liability" apply to protect shareholders of Union Carbide Corporation
(U.S.)?
Answer:
Not applied to protect shareholders
because the company’s debt was swelling up to $1 billion and this causes the
shareholders had suffered losses. Because the company managers had failed to
warn them of the risk at the indian plant.
3. Were the Indian operations, which
were being overseen by the managers of Union Carbide Corporation (U.S.), in compliance
with legal or moral or ethical standards?
Answer:
Not appropriate because the company
Union Carbide India Ltd. has not met legal and ethical standards that have been
set by the parent company. Therefore, many incident that occured at the plant
due to undesirable omission of employees and the lack of training provided and
because a majority of the employees of the illiterate so don't know the dangers
of pesticides used.
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