Financial statements are an important product of the accounting process. Provide an example of an external user. How could he or she be harmed by fraudulent and unethical financial statements? ? Large-scale bankruptcies and corporate frauds resulted in the Sarbanes-Oxley (SOX) Act.
PCAOB is authorized to investigate and sanctioned public accounting firms and every individual associated with the firm. Yes, it has assistance from, The Office of Research and Analysis (ORA) supports PCAOB and oversees the board’s activities. ORA identifies audit issues that would make the audit fail. Sanctions could be a fine and/or suspension or revocation of the firm. The Federal Trade Commission is an agency to protect consumer from anti-competitive business practice, (monopoly) I believe that is a waste of an agency.
2-33. How valuable is computer knowledge to a forensic accountant? I would have to say that computer knowledge is very important. Computer forensics are procedures applied to computers and peripherals for gathering evidence that can be used in civil and criminal courts of law(Crumbley 2007). For example in reference to overstated revenues; computer assisted audit techniques can be useful in identifying unusual or unexpected revenue relationships or anomalies in transactions.
E2-1 (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. TRUE (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. FALSE. General-purpose financial reporting helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information provided in financial reports. However, an implicit assumption is that users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements.
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.
● ● 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.
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. The authors of the report must certify that the report does not contain any false information, misleading statements or significant omissions, and that the financial statements and information included in the report accurately represent the financial condition of the company. Under Section 401 of the act, this representation must account for both balance and off-balance sheet debts, obligations and transactions in order to facilitate maximum transparency for shareholders (Nikolas, Daniel. Nd Effects of the Sarbanes-Oxley Act). The act serves as a guideline and governs what an accountant should and should not do when reporting financial flows.
Recommendation Brief for an Internal Accountant ACC/544 February 22, 2013 Fred Johnston Internal Auditor Recommendation Brief When a company like Whitfields has an out-of-control system they are subject to audits by the Securities Exchange Commission (SEC) regarding their financial statements. The company can form a hiring team. The hiring team can consist of three or more internal auditors. An internal auditor will add value and help improve the company’s operations. Some of the duties would be Evaluate controls, advising managers, evaluating risk, analyze operations, confirming information, and reviewing compliance with the SEC.
It does matter how small or big a business transaction is the law makes available a way for everyone to understand his or her duties and obligations. Corporations depend on the meanings of law to safeguard their business transactions while handling business relations. Legal counsel, arbitrary contracts, order, safety, establishing a good relationship with consumers, vendors, etc. are a few functions of business law (ehow.com,
Shontesa Kindle Colorado Technical University Online Phase 4 Individual Project CJUS260-1202A-02: Criminal Justice Ethics Instructor: Ivan Kaminsky 5/9/12 A magistrate is an official that is entrusted with administration of the laws. He or she is better known as the judge of a court room. They are entrusted with duties such as, exercising governmental powers over a major political unit and as a local official. They are to exercise administrative and judicial functions .Also magistrates may have limited original jurisdiction over civil and criminal cases. All professional groups require a code of ethics, which determines their behavior around colleagues, customers and competitors.