The company should consult Anne Shousha, its legal counsel, regarding consumer privacy laws, antitrust laws, and laws governing the collection of consumer information. The company should draw up a contract for customers to agree to upon entering into the loyalty program. The company should also ensure the proper security measures are in place to protect customer data. Political Kudler must adequately train management and make sure to meet with managers from each facility to make sure that they understand the changes that are taking place. The company will have to forge alliances with partners to participate in the loyalty program which will affect the sales department as well as upper management.
Should the company be having cash flow issues, additional disclosure in the financial statements may be required. This would be the case if a ratio was in violation of a banking agreement or debt covenant and the debt could then be called at any time, financial statement users would need to be aware of this. Ethical Issues The Vancouver office has asked me to call CCC regarding the employee’s employment status with CCC and why the payment was made from Worldwide. This poses a couple of ethical issues as there is a potential conflict of interest as I would be doing work for both the audit of CCC as well as the ex-employee from CCC regarding gathering information for her personal income tax return. This also poses a confidentiality breach.
Evaluate the effectiveness of regulations such as Sarbanes-Oxley Act over minimizing the corporate fraud and protecting investors and make one (1) suggestion for improvement. The Sarbanes-Oxley Act is been very effective especially by protecting investors and improving the accuracy and reliability of corporate disclosures, and much of the law seeks to further this goal by imposing strict rules for audits and auditors of publicly traded companies, prevent insider trading and deals, requiring companies to adopt strict internal controls, and increasing the penalties for white collar crimes relating to investor fraud. As a matter of fact, the Act effects dramatic change across the corporate area to re-established investor confidence in the integrity
| SOX was enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. | GLBA | The Act consists of three sections: The Financial Privacy Rule, which regulates the collection and disclosure of private financial information; the Safeguards Rule, which stipulates that financial institutions must implement security programs to protect such information; and the Pretexting provisions, which prohibit the practice of pretexting (accessing private information using false pretenses). The Act also requires financial institutions to give customers written privacy notices that explain their information-sharing practices. | GLBA helps to protect private financial information of financial institution’s customers. | HIIPA | This act gives the right to privacy to individuals from age 12 through 18.
Second, how do we deal with the ethical challenges that come with a Frequent Shopper Program, such as, Kickbacks? What type of preventative measures do we implement for our accounting and finance departments? Do we conduct bi-yearly training sessions to help educate our
Protecting the company’s financial, communication, and interest assets are illustrated. The method the company will conduct and regulate competition, money laundering, antitrust laws, insider trading, and bribery are outlined. The company’s international trade and transaction policies are also included that involve anti-boycott laws, import and export controls, and economic sanctions. The code of ethics also incorporates a section on compliance and reporting to enforce the employees’ ability to comply by having every employee read and sign the code, explains protection from retaliation for reporting violations, provides resources, and questions and
Adhering to compliance is crucial to prevent companies from failing and taking huge financial loses. McBride must implement a system of audit compliance committees that will help mitigate non-compliance. Audit compliance committees will review financial documents, including receipts, documents, stocks, trades, shares, investment numbers and any other financial documentation. Non-compliance includes behavior and unethical actions performed by senior management that will be audited and monitored by the compliance committee. The committee will consist of internal and external auditors who will each have a part in ensuring McBride continues to perform and service the needs of customers
Apollo, Inc. management of their financial records and accounting system and the auditor will accumulate evidence based on the information gather on the company’s financial records and accounting systems. Apollo Shoes, Inc.’s management is responsible for these financial records and other related information available for audit and for identifying and ensuring that the company complies with the laws and regulations that apply to its activities. Lastly, management is responsible for adjusting the financial statements to correct material misstatements and for affirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole (North Carolina State Board of CPA Examiners, 2009). Our responsibility is to express an opinion on these financial statements and an opinion on the effectiveness of the company’s internal control
Mall-Wart has entered into bankruptcy the month before and they informed Apollo Shoes, Inc.. To verify the validity of this transaction, the investigator needs to collect some evidence. The investigator needs to collect original documents relating to this shipment. This includes the original purchase order from Mall-Wart requesting the shoes and the original invoice from Apollo to Mall-Wart. This is a cause for concern, if Apollo Shoes cannot produce these documents, as this is how the investigator will know the transaction is valid. The investigator must interview accounting employees to gain an understanding of how the company’s accounts receivable process works.
Documentation is also important too because you need to keep records of any financial reports for the company for internal and external auditing that is done, it should kept on file as well on file in with the computer too for safety reasons. Independent internal verification would be put into place because you have to make sure that the data is correct for your business, and if anything is wrong it should be reported and corrected right away. Lastly I would want to bond my employees because I would want to make sure that my employees can be trusted to handle money and if any were to happen I everything would be covered for everyone involved. The way that my managers would use the financial information would be to determine how much salaries would be for employees as well as how much money would go into purchasing goods for the company too. All these things would determine how much revenue would come into the business and how much we lose as well.