● ● Requires codes of ethics for senior financial officers. In addition, Section 404 of the Sarbanes-Oxley Act requires public companies to attest to the effectiveness of their internal controls over financial reporting. 29. Some major challenges facing the accounting profession relate to the following items: Nonfinancial measurement—how to report significant key performance measurements such as customer satisfaction indexes, backlog information and reject rates on goods purchased. Forward-looking information—how to report more future oriented information.
2. Reliability: With moral principles clients are able to rely more on the Accountants. The nature of the work carried out by accountants and auditors requires a high level of ethics. Shareholders, potential shareholders, and other users of the financial statements rely heavily on the yearly financial statements of a company as they can use this information to make an informed decision about investment. They rely on the opinion of the accountants who prepared the statements, as well as the auditors that verified it, to present a true and fair view of the company.
A background check is a thorough search of an individual’s credit history, criminal history, driving records, past employment, and finances. Background checks are often requested by employers searching for potential employees, especially applicants seeking a position that requires handling large sums of money or secure information. These checks are administered by government agencies or by private companies. Under the Fair Trade Commission’s (FTC) Fair Credit Reporting Act (FCRA), a background check is considered a consumer report. There are two types of consumer reports: an investigative consumer report and a consumer report.
Week 4 Assignment Trusted Criminals p308 q4 4. Identify three federal regulatory agencies with specific responsibilities relating to white collar crime; describe the jurisdictions of these agencies. Which agencies appear to be most effective, and which agencies appear to be least effective—or even counterproductive—and why? What factors specifically influence how agencies operate? • SEC-Securities and Exchange Commission: The SEC’s purpose is to “serve as a repository and examiner for registration statements filed by companies planning to sell stock to the general public; providing information on securities to investors; advising on some bankruptcy reorganizations; and investigating and initiating action when federal securities laws are violated and frauds are committed.” The SEC’s job is to protect investors by regulating a policing the securities market.
3.During the investigation, assess the most significant red flags which would have been an indication of possible fraud needing corrective action by management. 4.Based on your research, suggest key practices the fraud investigator could have used in conducting interviews with the fraudster and the company’s employees. Assess the various interviews and interrogation questions available to you, and select the type of interview and interrogation questions that would have been most appropriate for this investigation. Provide support for your rationale. 5.Recommend a fraud prevention plan for this organization.
Sarbanes Oxley came into force mainly due to the financial scandals committed by corporate giants like Enron, WorldCom, etc. Since then the Sarbanes Oxley act had been the most important piece of legislation which seriously affects the corporate governance, financial disclosures and total accounting pattern in the companies. After the Sarbanes Oxley act came into force, accounting system and financial statements disclosed by the companies made tremendous progress. This improvement has been possible due to rigorous requirements stated in the Sarbanes Oxley act. Due to this improvement it helps to protect investor confidence in the companies and the US legislature as well.
Journal Of Criminal Law & Criminology , 465. Wang, X. (2010). Increased Disclosure Requirements and Corporate Governance Decisions: Evidence from Chief Financial Officers in the Pre- and Post-Sarbanes-Oxley Periods. Journal Of Accounting Research ,
Compare and contrast accidental fraudsters and predators. Give your opinion on what type of fraudster(s) committed fraud at the organization you researched. Provide support for your rationale. 5. Evaluate how teamwork and leadership are effective tools for financial forensic investigations.
Most of the occurrence of data records exposed was in the hundreds of thousands. The potential for extensive identify theft in the hands of expert criminals is enormous, resulting in the possible loss of billions nationwide. This paper will give an overview of the Legal, Ethical and Regulatory Issues for e-Business. It will explain how and why they are important, and the difference on the B2C website compared to a B2B website. The issue of honesty, integrity and trustworthiness are time tested values known to man.
Growing a business in accounting will take special characteristic, like self-confidence, but not over barring, integrity, time, patience, and organization (Cohn, M.). While being an accountant there is a high potential for human error, I must be detailed. Being a detail oriented person not only in my personal life as well as my business life I believe I can excel in my ventures. When handling client needs I would need to be clear on my abilities to get the job done. I am going to have peoples financial life’s in my hands, it’s extremely important that I am efficient in my job and protect my client’s