The PCAOB is now issuing its own auditing standards, including establishing standards for audits of the effectiveness of internal control over financial repprting. 2-10. Generally accepted auditing standards have been criticized by different sources for failing to provide useful guidelines for conducting an audit. The critics believe the standards should be more specific to enable practitioners to improve the quality of their performance. As the standards are now stated, some critics believe that they provide little more than an excuse to conduct inadequate audits.
Audit Report and Program Design ACC/546 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Apollo Shoes, Inc. We have audited the accompanying balance sheets of Apollo Shoes, INC. as of December 31, 2014 and the related statements of income, comprehensive income, shareholders’ equity, and cash flows for the two years in the period ended December 31, 2014. We have also audited management’s assessment, included in the accompanying Management’s Report on Internal Control over Financial Reporting, that Apollo Shoes, Inc. maintained effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued
With Mr. Parker being clearly motivated to merge, I would like to consider motivations for Mr. Baily to oppose the merger. When Mr. Bailey was initially approached regarding a merger with USO he expressed concern regarding the financial stability of the UOC versus the financial stability of the USO. The UOC is financially stable due to a reserve fund that is in place due to their current business model. These funds allow the UOC to be flexible and maintain stability if they only cut projects that do not meet their fund-raising goals. The USO does not have this flexibility and could not operate within their current successful business model.
In the case of “Cynthia Cooper and WorldCom”, the accounting activity taking place clearly violated the ACIPA Code of Professional Conduct. Accounting dishonesty is the key activity involved in this case. It was noted in this case, that these unethical practices had taken place in upper authority, even down to lower level employees. Early on in this case, accounting statements were supplied; which raised red flags. The accounting statements were capital spending schedules, which differed in spending amounts (Mintz & Morris, "Case 2-1 Cynthia Cooper and WorldCom," 2011).
He in fact also admitted that much of the criticisms had been unfounded, but the importance of individual ministerial responsibility at that time made his resignation almost inevitable. In contrast, in more recent years this has become less important in the reasons for a ministers resignation. In 2007, the failure to deliver SATS test results fell on the department for education, the minister of which was Ed Balls. However, despite the apparent incompetence, in the department’s inability to return the results, Ed Balls clearly did not feel accountable to the whole issue, and did not resign. Nevertheless, media pressure and personal revelations have become much more apparent in politics in recent years.
He took his business into the commercial field. What have we done to ourselves? As a class we talked about greed and how greed often motivates our financial decisions. We also discussed ethical responsibility in business. I think the best step forward would be to, on a national scale, adjust living standards downward.
Part A: Analysis Business Model Seagate and Deal Rationale #1: Why is Seagate undertaking this transaction? How suitable is an LBO for a technology firm like Seagate, and what are the potential sources of value creation in the transaction? Motivate your answer. The Seagate management believes that the company needs heavy and intensive that are not feasible if Seagate Inc. remains a public company. Other capital re-organizations alternatives involve significant tax liability and considering the present state with Seagate being a public company, tax liability will result in loss of wealth for the shareholders since it involves corporate taxes as well as personal tax liability.
L. Sierra said this statement, “The sad fact is that many business leaders don’t understand the value of communication” (L. Sierra, 2003). Personally, I find this fact to be shocking but I can also say that in my personal experience of dealing with people it is true. Sierra gave an equation to show non-communicators the value of communication. Sierra equation is: “Value = (Cost + Effort) Perception; That is, the value of communication is equal to the costs plus the efforts of what you're communicating to the power of perception.” (L. Sierra, 2003). Can we really measure the value communication?
The CPA or CPA firm would at least have reputational interest in the financial report that it “managed”. This human nature will impair the CPA or CPA firm’s independence, and will decrease the reliability of the audit report. Second, self-interest focuses on the interest of decision makers. The CPA or the individual partner of the CPA firm would probably increase his own compensation by serving as both the entity’s consultant and auditor. On the other side, for the entity, hiring the same firm as both consultant and auditor can save it audit expense, since the CPA or CPA firm has already known a lot about it when performing consulting, thus decreasing its audit hours.
The report went against the classic state centric approach to security, saying that security has “For too long been interpreted narrowly: as security of territory from external aggression, or as protection of national interests in foreign policy or as global security from nuclear holocaust. It has been related more to nation states than to people” (United Nations Development Programme, 1994) The report then goes on to briefly identify some of the core elements that make up human security. “For most people today, a feeling of insecurity arises more from worries about daily life than from the dread of a cataclysmic world event. Job security, income security, health security, environmental security, security from crime - these are the emerging concerns of human security all over the world.” (United Nations Development Programme, 1994) The United Nations are trying to show how human security is a very personal concept as it deals with the life needs of the individual as these insecurities are far more likely to affect people than the threat of an interstate war. This approach to human security, although the first fully realised expression of it, is not the definitive concept.