WGU D550 Task 2|Latest 2025 Update with complete solution.
D550 – Ethics for Accountants Name – Student ID Task 2
To: John Maelstrom, Senior Partner, Awesome Accounting Associates
From: Name, CPA
Dear Mr. Maelstrom, I am writing to report on some of my findings while conducting an audit of our client, Lone Star Athletic Wear (Lone Star), along with a couple recommendations of actions that should be taken by Awesome Accounting Associates.I have discovered at least 3 violations of the Lone Star Code of Ethics for
Senior Officers:
- Section III-A (Ethical Standards of Conduct) states that Senior
Officers “must avoid any actual or apparent conflict of interest”, but it has come to my attention that Lone Star CEO, Sam Johnson, has an undisclosed relationship with Sun City Sports CEO, James Williams.Williams is Johnson’s former college roommate and this relationship appears to violate the policy to avoid even the appearance of a conflict of interest, as two years ago, Lone Star bought a majority stake in Sun City Sports.
- Section III-B (Disclosure Standards) states that Senior Officers “are
responsible for upholding Lone Star’s policy to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable securities laws and regulations and company policies”, but I have discovered that significant related party transactions involving Johnson and Williams have been intentionally hidden by Lone Star for the last two years.
- Section III-B (Disclosure Standards) also states that Senior Officers
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“will make diligent efforts to ensure that the Lone Star finance department has the appropriate resources and functional expertise to properly fulfill its responsibilities”, but I have been informed that Sun