The responsibilities of an audit partner in an accounting firm is to review the accounting actions performed by their client and notify them of any corrections that are required. The CFO of a large public company should oversee all of the company’s finances so that it is steered in the right direction. The audit partners role is weighted heavier in that their responsibility is to the public, not just one company. If the CFO is unable to do his/her duties, then the audit partner should find and report those inaccuracies. The stress of the audit partner is tremendous and choosing that profession is one that I would prefer not to undertake.
Out of the many parties in the league and the major force behind the debacle of Enron concern Andersen's, the accounting and auditing firm that once deserved name in the industry for its conscience in accounting professional services and auditing. The interesting feature is that some compromise in the profession of accounting services by Andersen's was notable, given that there are noteworthy feature of stock manipulation, especially in financial statements of Enron attended and audited by Andersen's. 2. List three types of consulting services that audit firms are now prohibited from providing to clients that are public companies. For each item, indicate the specific threats, if any, that the provision of the given service could pose for an audit firm’s independence.
Name as many as possible. Any businesses that are distributing any unlawful actions like fraud. Financial statements shows what the company make for the year as well as what the company is bringing in. The owners are affected by this because if something is wrong it could fall back on them. The employees are affected because if something was to go wrong they may lose their job because of the company faults or not get paid like they should.
Hugh McBride will address who the company’s stakeholders are, define the end-state vision, identify and evaluate alternatives, identify and access the risk of the alternatives, recommend optional solutions, create and implement solutions, and to access the outcomes. Beltway Investments are McBride Financial Services major investor. There are some that anticipate for the company to be run by implementing corporate governance. The company’s CEO has decided not to implement this option. The new CEO would rather operate the company without interference of the “money man.” Even though, this maybe a gamble due to corrupt the thinking that would affect Beltway’s public credit.
This is a problem that a lot of nig corporations face these days when being funded by investors or government agencies. There are cases from the past where government funds were given to an organization to use for training purposes. When funds are coming and going in an organization, un ethical people do not record all the necessary information to track the funds correctly, showing that there is more available that there actually is. When this happens, audits are necessary to find where the monies are missing from, eventually exposing the guilt parties so that they can be prosecuted for their
I just guess.For the shareholder’s, they will absolutely withdraw the contract.For owners of vehicles, they will try their best to check the machine and explain why to the chair of this company. | Question #3 | Discuss the potential consequences for Robert, ABC’s employees, ABC’s shareholders, and owners of vehicles equipped with the problem gas tanks if Robert does NOT report the problem to the NTSB. This will require at least one paragraph. | Potential consequences for Robert: If he does not reports the problem to the NTSB, he will not be expired or found by someone else, but at last, if this problem has not solved, he will need to explain or make up for the company, however, if the problem has solved at last, he will feel guilt in the process of the entire process. For ABC’s employees, the shareholder’s, owners of vehicles, they will have no potential consequences.
Most probably, their management team has not been fulfilling the factors to succeed in a business, or they do those factors, but not with full potential. It is possible that the corporation has a hard time searching for diamonds that can cause a high price of using the equipment, but a return that can not attain the cost of searching for it. Eventually, the corporation loses money, and then most likely the stock will go down. In additional, the corporation would require a major effort to make a comeback, and gaining investor’s trust. The corporation could be having difficulty to persuade investors to buy shares of their stock, or they have internal problems that have not been solve by the company.
Despite the success of Walmart its executive management team must the aware that the corporation is exposed to a variety of business risks. As the largest employer in the world one of the risk the company is exposed too comes from its own work staff. Employees can become a source of risk because acts such as injuries in the workplace can cost the company money in medical expenses and potential lawsuits. Employees can file a lawsuit against the employer for a variety of reasons including wrongful termination of employment, sexual harassment, and discrimination among other reasons. Another risk that the firm faces is legal.
IRS Scandal Amanda G HUM 111 IRS Scandal The topic is the IRS scandal. To use the strategies for applying creativity to problems and issues with this topic, takes a bit of thinking. By taking the novel approach (Ruggiero, 2012) to address the topic I would take the information tell it like it is stated in the article and then twist it to show that what they were doing is in fact wrong. Like this, “Due to the scandal, acting commissioner for the IRS Steven Miller had to resign even though he was not even there during the time of the scandal (Marsden, 2013). The IRS was using political party information to single out groups from the Tea Party and make it harder for them to get tax exempt status (Marsden, 2013).
Instead of selling his stock, which he thought would further cause a decline in stock price on Wall Street, Ebbers requested the Board to approve personal loans to fill in the margins (Hopkins, 2003) To ease the process, Ebbers took advantage of the lack of independence of the board members who were loyal to him such as Stiles Kellett, chairman of the Compensation Committee, and Max Bobbitt, chairman of the audit committee. Not only did the two allow the loans to grow to more than $400 million, but also when the Board found out about these loans, they failed to take any action and allowed the loans to carry on (Hopkins, 2003). One main reason Ebbers’s loans were approved was the Compensation Committee. The Committee’s authority was stated in a charter from 1993 that listed a vague description of its power to supervise the compensation of the officers (Beresford, 2003). The management and accountants have the highest opportunity to perpetrate the fraud.