This also includes establishing a private-sector regulator to oversee the auditing profession to combat accounting fraud, and enhancing financial disclosures. Companies are under more pressure to comply with SEC and Sarbanes-Oxley Act after recent and growing concerns about their ethical behaviors. Role of Ethics and Compliance in the Financial Environment Starbuck’s role of Ethics and Compliance in the financial environment applies to the Chief Executive Officer (CEO), Chief Financial Officer (CFO), comptroller, and other financial leaders. The company’s code of ethics encompasses
“LJB Company…Headed in the right direction” Carl R. Smith Acct 504- Professor Wibbert 2-9-2014 1. To the LJB President: I would like to personally thank you for allowing my accounting firm to evaluate your company’s internal controls system. In my report you will be informed of any new internal control requirements required for LJB to go public as well as inform you of what your company is doing right and make any suggestions on what the company can do to get better. The interest of the company going public will be a very successful decision. Some tests have to be properly administered to do so.
The AICPA is basically a community of accounting professionals and CPAs. Individual: AICPA Code of Professional Conduct The purpose of the AICPA is to have a precedent of set ethical standards for the accounting profession and auditing standards of companies that are private, nonprofit organizations, federal, state and local government. In having support for those in the accounting profession and to improve the profession as a whole. It is responsible for aiding in setting certain technical standards for those accounting professional who goes on to get their licenses to becoming CPAs. The AICPA have several publication that helps with guiding the accounting profession and to enhance the member’s technical and professional abilities.
EHT/376 The Purpose of the AICPA Code of Professional Conduct The Code of Professional Conduct of the American Institute of Certified Public Accountants is a voluntary association of Certified Public Accountants. This code is used to discuss the ethical obligations of CPAs and to provide guidance and rules to all accounting professionals in public practice. I believe that the Code of Professional Conduct is considered as the foundation of ethical reasoning in the accounting profession because every CPA has an ethical responsibility and a commitment to the public, to clients and to colleagues of honorable behavior, even at the expense of personal advantage. Following I will discuss the three main purposes of the AICPA Code of Professional Conduct and why I believe these three purposes are most important (Mintz & Morris, 2011, Pg 50) . The purpose of the AICPA Code of Professional Conduct includes responsibilities, the public interest, integrity, objectivity, independence, due care and scope and nature of services.
Society as a whole is responsible to conduct business ethically. Parallel to the formula that we use for inventing the laws that a society created to promote specific behaviors and actions that are appropriate to build trust and relationship, it is similar in corporations' behavior. According to Svensson & Woods "Society does have expectations of business and of its business leaders" (Svensson & Woods, 2008, p. 306). Ethical business behavior is a combination of values and normative ethics, which drive an organization. When analyzing Anglo-American and Primark for this case study.
Writing a code of conduct, supporting it at top levels and communicating it to employees is just a start. Publicly commit to being an ethical organization - Corporations that are open about their ethical standards and conduct seem to be more trustworthy than those who stay silent. Separate auditing from consulting functions - Allowing Arthur Andersen to both audit and consult with Enron created at least an appearance of a conflict of interest. Talk with employees at all levels often – Failure to communicate causes far more pain than smashing your thumb with a hammer. Build ethical conduct into corporate systems - Define your position as an ethical business.
Field work phase We used following techniques in our field work: -Interview with Bert Roberts who was the chairman of the board and John Sidgmore, vice chairman of the board (see exhibit A) -Interview with Max Bobbit, the chairman of the Audit Committee -Review of minutes of Board meetings -Evaluation of the functions of the Board based on the review of the organizational chart -Review of company’s procedures manual on compliance -Accounting department organization structure and related functional job descriptions including responsibility and authority relationships Review Work Steps | Budgeted Hours | Personnel Assigned | 1. Goals and Objectives a. Review plans and goals for the year b. Review internal materials related to employee growth | 6 | Shernelle | 2. Organization Chart and Procedures Manual c. Obtain a copy of organization chart and analyze
Carmichael and Limperg’s Theory of Inspired Confidence 1. Who is the author of this paper and what is his position (give description of responsibilities) with the PCAOB at the time of this article? The author of this article is Douglas R. Carmichael and his position at the time of the article is the first Chief Auditor of the Public Company Accounting Oversight Board (PCAOB). He is the primary advisor to the PCAOB on policies and technical issues related to the auditing of public companies, including auditing standards. Mr. Carmichael is also the head of the PCAOB’s professional standard setting division. 2.
Annual Report for eBay Inc. Year Ending 2011 Shaun Evan Wright ACC 100: Accounting Professor Howard Katz Strayer University March 2013 Introduction With any company, you have an annual report. An annual report is a document that identifies and communicates to different investors and other people concerned about that company’s financial status. The annual report takes a look at the company’s financial earnings, assets, controls and procedures, quantitative and qualitative disclosures, etc. In this paper, that I am writing, we will explore and gather information from a very reputable and known company known as eBay Inc. I will be using their annual report from 2011, and explain the main sections of the report, discuss key factors that helped influence the company’s financial performance for the year stated above, the company’s assets, and we will also explain how management characterizes the internal control environment.
- Compliance Department (1,2) Why: A bank should ensure a strong compliance culture throughout its organization, where the board of directors and senior management set the right tone. The board of directors and senior management (including Head of the business and Supervisors) should set a clear risk appetite and ensure a compliance culture where financial crime is not acceptable. The Third Line of Defense helps the Bank to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. How & Who: Develop policies for periodic internal audits (5) covering: Adequacy of bank’s policies, procedures and controls identifying key risks, addressing the identified risks and complying with laws, regulations and