Shaquila Turner Reporting Practices and Ethics Paper March 28, 2011 HCS/405 David Catoe Reporting Practices and Ethics Paper Financial management of health care organizations is faces with many ethical standards and reporting practices. Organizations must report all financial data the proper way to ensure that it is true and factually. Handling the financial side poorly will and can show a different side of the organization. The organization can lose money which will affect many people that is working with the company or working for the company. The person that is has an effect on will be the employees, customers,
If a company’s internal controls are not working properly customers and investors will be more doubtful and have second thoughts on their investments and money being safe which will lead to having less investor and the stocks will drop. It is very important for companies to have their internal controls up to date and making sure they are working properly because this can cause major setbacks financially. But there are some instances were internal controls cannot even stop unethical behavior from happening such as shoplifting in a shopping mall or even a bank
Name two tools used to plan, schedule and monitor the activities during a systems implementation project. 12. The objective in designing any internal control system is to provide foolproof protection against all internal control risks. 13. A good _________ enables an accounting manager as well as auditors to follow the path of the data recorded in transactions form the initial source.
This review of the organisation helps to keep it honest and reassures the employees and investors of the financial position of the company. They will reveal accounting mistakes and the misuse of funds. Audits can be done either internally by the accounting department of the company concerned, or externally by an independent neutral third party. 5. What are: a)
( Weygandt,Kimmel & Kieso, 2008) It is more than quite obvious that in business dealings all parties involved for do not always conduct themselves in an ethical manner. The same can be said about employees as well as consumers. There are internal controls set in place when you have employees that are dishonest or simply inefficient so that they can be quickly identified for their wrong doings. On the other hand, there are internal controls that can reveal honest mistakes when necessary. While inputting entries and reviews, it is possible that an accountant or employee can make an error.
Employees must respect the clients’ information and the bank’s reputation. Bank employees must keep accurate records, use bank computers appropriately, and be honest when questioned and when no one is watching. Respect Others The handbook asks customers to “deal with others—including your fellow employees and our customers, vendors, shareholders and competitors—as you would like
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.
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.
The audit report must show report that management has established and maintained internal controls for financial reporting. Certification of each annual report must be verified by the executive offers of the company, the report must show that they maintained established internal controls. The offices of the company must include in their reports evaluation of the internal controls effectiveness. Included in the reports, there must be reports of fraud that may have an effect that have any effect on the internal controls. The Sarbanes-Oxley Act contains 11 titles that describing rules and requirements for financial reporting in the United States (Wang,
As the CEO of the company, Ebbers should play an important role in ensuring the company conducts business in accordance with the law and is on the right track. However, in the case of WorldCom, person who involved in fraud were the ones from the top management. When the top management has involved in fraud, they will use their power to cover offenses committed by them. Although employees of WorldCom know the fraud made by the top management, they have no right to object the top management decision as WorldCom implement a systemic attitude conveyed from the top down which employees must simply do what they were told and should not question their superior. They are afraid if there are any inevitable consequences when they are doing so.