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:
1. 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.
2. 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.
3. Section III-B (Disclosure Standards) also states that Senior Officers
“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
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:
1. 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.
2. 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.
3. Section III-B (Disclosure Standards) also states that Senior Officers
“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
