The U.S. government has stolen trillions of dollars from future generations of Americans, and we continue to add well over a hundred million dollars to that total every single day. The 59 trillion dollar binge that we have been on over the past 30 years has fueled the greatest standard of living the world has ever seen, but this wonderful life that
Also, in Auditing Standard No.14 of PCAOB, it says the communication just gives the management an opportunity to correct misstatements. However, auditors should be more suspicious of these uncorrected misstatements, because there may be a sign of fraud. Thus, PCAOB requires auditors to understand why their clients refuse to make corrections, and evaluate the effect of the uncorrected misstatements, both individually and in combination with relevant accounts. 2. Should auditors take explicit measures to prevent their clients from discovering or becoming aware of the materiality thresholds used on individual audit engagements?
Question 1: Auditors should not insist that their clients accept all proposed audit adjustments even though those that have an immaterial effect on the financial report. The auditors should be suspicious of any rejection of the clients and have to investigate deeper into the suspicious accounts. Moreover, auditors should not be careless even though they have close relationships with the clients and fear that they would lose potential auditing fees. Question 2: Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles.
Mortgage Foreclosure Crisis Michael Devitt Period 2. Final It’s a new year, the year of 2008. Some excited for all the things that are going to happen this year. Little did they know the economy will plummet, forcing massive numbers to foreclose, and many to be laid off. Few saw this devastation coming.
STEPHEN JOYCE Student Loan Debt It was announced last summer that total student loan debt, at $830 billion, now exceeds total US credit card debt, itself bloated to the bubble level of $827 billion. And student loan debt is growing at the rate of $90 billion a year. There are far fewer students than there are credit card holders. Could there be a student debt bubble at a time when college graduates’ jobs and earnings prospects are as gloomy as they have been at any time since the Great Depression? The data indicate that today’s students are saddled with a burden similar to the one currently borne by their parents.
Many eager businessmen with a few extra dollars invested in the railroad and real estate businesses, and soon this gave way to massive over speculation. Over the next few years, 89 of the country’s 364 railroads went bankrupt, over 15,000 businesses failed, and unemployment skyrocketed to 14%. Eventually, the economy managed to get itself back on its feet, and by the 1880s the country was back to normal. The government passed a number of reformative protective tariffs which were meant to ensure that nothing like the panic would ever happen again. Unfortunately, it did.
What Caused the Great Depression? Many believe that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. Actually, the stock market crash was only one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars (Doc D). Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and American truly entered what is called the Great Depression.
From 1979 to 2006, the financial industry’s share in the nation’s corporate profits grew from a fifth to almost a third. By 2006, bankers and insurers were making 70 percent more, on average, than workers in the rest of the private sector. Then they set off again one of the worst financial crises since the Great Depression, and taxpayers bailed them out. The corruption is just not limited to Wall Street but also politicians who made money off of looking the other way. My input on this is that we did not learn anything from the crash of the stock market in 1929.
Company started to grow rapidly in his time. It became the largest international insurance company in USA. Before 2008 collapse, AIG had revenues exceeding $110 billion, with total assets of over $1 trillion and 116000 employees around the world. Coping with Financial and Ethical Risks at American International Group (Aig) Q: 1 Discuss AIG’s corporate culture as to what role it played, if any, in its downfall. Ans: : Greed and defilement lead by Greenberg, Encouraged individuals to go for broke, little obligation was put on officials, They didn't reveal fitting money related data to speculators, 38 administrators offered reward running from $92,500 - $4 million AIG's Culture.
There can be a lot of factors as to why companies file for bankruptcy and closure. In the case of Enron, the first set of problems in the company manifested when traders reluctantly gambled with company assets in the oil market. They lost $90 million in a period of five days. Since then company reserves disappeared and auditors saved the company by reporting fake net worth and imprecise trading revenues resulting to accounting scandals in the company. Due to the company’s compound business model and unethical practices, they required that the balance sheet is to be modified accordingly to illustrate satisfactory