True (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result. True E2-4 Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. Comparability (b) Quality of information that confirms users’ earlier expectations. Confirmatory value (c) Imperative for providing comparisons of a company from period to period.
The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP). The information is important to investors, managers, banks,
Internal auditors guarantee that the internal controls are sufficient and calculate the company’s financial and information systems for accurateness. A series of audits such as financial statements, fraud, compliance, and operational can be made with the hiring of an internal auditor. The most beneficial audit for Whitfields Company would be an operational audit. Operational Audits can be done if upper-level management thinks that there is a need for operational improvements. It is a review of management and how operating procedures work.
The Act was designed to promote honest and ethical conduct; full and accurate disclosure in periodic reports; and compliance with applicable government rules and regulations. The sections in the act that impact corporate responsibility address education and knowledge, accountability, control, fraud, obligations, and truth in accountability. Section 302 of the Sarbanes-Oxley Act introduces the requirement for several certifications regarding periodic financial reports. The signing officers must certify that they have reviewed and approved the report, and that they have evaluated the company's internal accounting controls within the preceding 90 days, and reported honestly on their findings. Under Section 404 of the act, these findings must detail any uncovered control deficiencies or instances of employee fraud, and must also be reviewed and attested by the registered accounting firm.
Ethicality of Accounting Activities Learning Team E - Ashley Horne, Brochelle Shirley, Erika Schmidt, and Mareta Guerrero ETH/376 September 30, 2013 Tammie Holland Ethicality of Accounting Activities To evaluate the ethicality of accounting activities, Learning Team E will review the Cynthia Cooper and WorldCom case using the following criteria. This review will identify the key accounting activity involved in this case and evaluate the accounting activity in terms of the AICPA Code of Professional Conduct. Additionally, determine how the accounting activity was or was not equitable to internal and external stakeholders and which aspects were ethical or unethical. Finally, through the identification of key team members in this case, this review will explain his or her ethical or unethical actions and how those actions influenced the events that occurred. Key Accounting Activity Involved The key accounting activity involved in the case of Cynthia Cooper and WorldCom was capital expenditures, which is defined as “…the funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment” (Capital Expenditure - Capex, 2013, para.
As an auditor, understanding and testing internal control over financial requires knowledge of standards applicable to the corporation established by GAAP or IFRS. Section 404 of the Sarbanes-Oxley Act requires mandatory reporting on internal controls by management and independent auditors. To obtain a system of internal control as mandated by Section 404 of the Sarbanes-Oxley, policies and procedures designed to provide reasonable assurance of the companies’ effort in achieving its objectives and goals. Committee of Sponsoring Organizations of the Treadway
The objective of this joint project of the Boards is to develop a common conceptual framework that is both complete and internally consistent. The framework is highly beneficial in that it would provide a sound foundation for developing future accounting standards and would consist of standards that are principles based, internally consistent, converged internationally, and that lead to financial reporting that provides the information needed for investment, credit, and similar decisions (iasplus.com). The framework, will deal with a wide range of issues, and build on the existing IASB and FASB frameworks. www.fasb.org/.../FASB/FASBContent.../ www.iasplus.com/en/projects/completed/framework/framework-joint 7. Give examples of authoritative and non authoritative U.S. GAAP.
AICPA Code of Professional Conduct Certified public accountants (CPAs) perform a role that is essential to society. Because of the importance of that role, CPAs have responsibilities to anyone who employs their professional services. CPAs also have a responsibility to assist one another in enhancing the accounting profession, maintaining the public's confidence, and consistently fulfilling the profession's exclusive responsibilities. The voluntary association of CPAs, better known as the AICPA, has proposed a code of conduct that CPAs have chosen to adhere to. Now it is time to discuss the purpose for AICPA’s code, why it is considered the foundation of ethical reasoning, and its most important purposes.
Integrating audit productivity software with the ERP systems design will allow Kudler to improve its information systems flow. TeamMate is one of the above-mentioned software programs. The benefits from using TeamMate would add enhancements in payroll, inventory, accounts payable, and accounts receivable processing. The use of audit productivity software, such as TeamMates will increase the efficiency and productivity of the entire internal audit process. Kudler can use the audit software program for generating reports, risk assessment, trend analysis, planning, execution, audit reporting, and storage.
Reporting Practices and Ethics Paper Sharon Tucker HCS/405 May 13, 2013 Elizabeth Caissie Abstract The implementation of financial reporting and ethical standards are crucial for the growth and progression of an organization. Reporting fairly and accurate data will help control measurements that may address theft and/or fraud within the structure. Ethical standards are vital for the development in an organization’s set rules and policies in having quality in the services provided including integrity, values, and delivering effective outcomes in honesty. Generally accepted accounting principles (GAAP) are set guidelines which indicate rules, regulations, and procedures that are implemented for the maintenance and/or monitoring records. An organization that provides a financial statement to the public, investors or government funding entities must follow the set standards developed by Financial Accounting standards Board (FASB).