Workplace confidentiality requires that this information be identified and secured to prevent unauthorised access or release of the information and includes everything from policies on workplace Internet usage to nondisclosure agreements in employee contracts. Breaches of workplace confidentiality can result in a range of problems. Customers tend not to work with companies they think are untrustworthy, and consumers may specifically warn people away from companies that have mishandled private information like addresses, purchasing records, and credit card numbers. Companies can also experience compromises in their long term business plans if information about products in development or ideas a company is considering are released
Enron Corporation 1) Describe how Enron could have been structured differently to avoid such activities. The law required Enron Corporation to describe its party transactions to shareholders and the member of the investing public in numerous of different disclosure documents. Enron withheld information that were disclosed which ultimately was important for understanding the meaning of transaction. They disclosed that there were large transactions that the CFA had interest. Enron Corporation did not give the CFO’s factual or expected benefits from these previous transactions or provide financial statements in its entirety.
Sales and Collection Cycle The sales and collection cycle will entail researching of Apollo Shoes journal of sales in search of abnormal transactions and records. The process of this audit test procedures begins when a customer purchases a product from Apollo, and ends with the receipt of the complete payment from the customer. The test of controls the auditors will perform comprises the completeness, accuracy, and classification of transactions and will include accounting for a sequence of shipping documents, observing whether monthly statements are sent, and examining document packaging for internal verification. It will also test of controls for a sequence of shipping documents and the substantive tests will be to compare the date of recording the sale in the sales journal with duplicate sales invoices and bills of lading. Finally, the test of controls for the posting and summarization objective will be to examine evidence that the accounts receivable master file is reconciled to the general ledger and observe whether monthly statements are sent to customers.
The board of directors is responsible for overseeing and exercising corporate powers and certifying the company’s business affairs while managing the goals and objectives for long-term interests of the shareholders. Organizational Annual Report and SEC Filing The SEC requires publically traded companies to file annual financial reports, and these reports are open to the public. Investors are interested in these reports because it helps in determining the financial health of a company. As a means for providing guidelines, principles, and objectives for the financial markets in the United States, the Sarbanes-Oxley Act of 2002 enhances the SEC’s roles for reforming corporate accountability. This also includes establishing a private-sector regulator to oversee the auditing profession to combat accounting fraud, and enhancing financial disclosures.
For example sales made to a related party will not necessarily be differentiated from ‘normal’ sales in the accounting systems. • Related party transactions may be concealed in whole, or in part, from auditors for fraudulent purposes. A transaction may not be motivated by normal business considerations, for example, a transaction
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This is not because I think your knowledge in this area is in any way faulty but I feel it necessary to be thorough. The main goal of financial accounting is to prepare reports for outside sources such as stockholders, investors, or for tax purposes (Financial Accounting. (n.d.). There are a few different financial accounting systems but the most common are Accrual and Cash methods (Financial Accounting. (n.d.).
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.
I would think that disclosing the advisors motives would have a greater impact on the estimator’s decision. This shows that although auditors are required to reveal conflicts of interest to investors, this information does not necessarily impact the investors’ decisions. I would agree with the authors that the provision to disclose conflicts of interest may worsen the problem rather than fix the problem. It makes sense that if the auditors think their disclosure
The Salz Review has generally assumed the veracity of information provided. Other individuals considering the same information could form a different assessment of it. Similarly, the Salz Review might have formed a different assessment had it considered other information. Accordingly, the findings of the Salz Review should not be treated as determinative of any fact, nor of the performance of, or compliance with, any legal or regulatory obligation. The Report is not for the purpose of guiding or influencing the conduct or decisions of any person other than Barclays, including any investment or other financial