credit ratings shopping. ● Complex financial instruments and inaccurate methodology in assessing and evaluating credit risk associated with securitization e.g. ABS, CDOs, RMBS marketability and other financially engineered instruments including credit derivatives. ● Failure to regulate internal surveillance procedures, and to monitor credit risk assessment and quantitative methodology deficiencies e.g. underlying creditworthiness and excessive risk exposure derived from securitized tranches.
Exclusionary Rule Evaluation CJA/364 Exclusionary Rule Evaluation When an individual examines the exclusionary rule, components have to be taken into account in order to determine a meaning or justification for the law enforcement to obey by. This rule does not have anything to do with the fourth amendment although there are similar. For years the exclusionary rule has been used in order to understand how evidence is gathered and apprehended. This essay will explain the evaluation of the exclusionary rule, the exceptions, advantages and disadvantages to the rule. Although the examination of the exclusionary rule may constitute deterrence for law enforcement, the rule still may be considered constitution although its existence (Zalman, M. (2011)).
1 requires that "in all matters relating to the assignment, independence in mental attitude is to be maintained by the auditor...he must be without bias with respect to the client. "26 Because a principal purpose of auditor independence is to provide assurance to investors, the accounting profession has long required independence not only in fact but also in appearance. SAS No. 1 states, "Public confidence would be impaired by evidence that independence was actually lacking, and it might also be impaired by the existence of circumstances which reasonable people might believe likely to influence independence. "27 Accordingly, "Independent auditors should not only be independent in fact; they should avoid situations that may lead outsiders to doubt their independence.
According to Johnson-Reid (2000) in order for a resume to be classified as confidential the applicant must come from outside of the government, presented a resume willingly and not obliged by any process or school rules. This element is usually content, because normally one is not needed to search and apply for a job. If the following criteria are not met then all resumes are considered as public record. Jim Sears used public information to gather additional information on the candidate. Jim
* Financial statement disclosure has been expanding * Mandated information disclosure justified b/c it minimizes or reduces a “market failure” to provide information voluntarily. W&Z suggest regulation is a response to market failures associated w/ private production of information. They conclude that market failure arguments are fallacious and disclosure regulation may not achieve a social optimum. In general, they’re arguments are against accounting regulation. Purpose: To review critically anti-regulation arguments and their link to positive accounting theory.
The disclosure shows the loss contingency and states the estimate of loss. Before the company issues the financial statement and after the enterprise’s financial statement is done, the company can impair an asset or incur the liability. Disclosure of loss contingencies helps the company to keep its financial statements not being misleading. When the disclosure is necessary, the company must report the loss contingency in financial statements with a given estimate of the mount of loss. Reference Financial Accounting Standards Board (2010).Statement of Financial Accounting Standards No.
a. Adjusted trial balance b. Comparative balance sheets c. Current income statement d. Additional information 4. The primary purpose of the statement of cash flows is to a. provide information about the investing and financing activities during a period. b. prove that revenues exceed expenses if there is a net income.
In fact, members of an audit committee were required to “be a member of the board of directors of the issuer, and otherwise be independent,” where independent means “not receiving, other than for service on the board, any consulting, advisory, or other compensatory fee from the issuer, and as not being an affiliated person of the issuer, or any subsidiary thereof” (AICPA, 2006, Section 301). Not only that, but it requires that “one member have accounting or financial management expertise” (AICPA, 2006, Section 407). This is important, as the Act seeks to make audit committees more impartial with regards to auditing a company’s accounting processes, yet knowledgeable of financial processes and procedures. Previously, companies had significant problems with conflicts of interest. In addition to the new membership requirements, the Sox Act required that “the audit committee of an issuer shall be directly responsible for the appointment, compensation, and oversight of the work of any registered public accounting firm employed by that issuer,” and “The audit committee shall establish procedures for the ‘receipt, retention, and treatment of complaints’ received by the issuer regarding accounting, internal controls, and auditing” (AICPA, 2006, Section 301).
Materiality is defined by the FASB as an omission that would affect a normal person by a misstatement such as using earnings management to skew the true earnings or revenue. This calls in to play the unethical behavior that earnings management places on the public (violating AICPA Code of Professional Ethics). SOX further required management and accountants to be cognizant of the material errors that financial misstatement and false reporting could have from an ethical standpoint. It holds them accountable for all financial reporting from their company. This includes criminally and financial accountability.
A number invented by purveyors of panaceas for pecuniary peril intended to mislead senior management and regulators into false confidence that market risk is adequately understood and controlled. Schachter begins by explaining that Modern portfolio Theory (MPT) tells us that the risk in a portfolio can be proxied by the portfolio standard deviation, a measure of spread in a distribution. You would think that standard deviation would be all you