Out of the many parties in the league and the major force behind the debacle of Enron concern Andersen's, the accounting and auditing firm that once deserved name in the industry for its conscience in accounting professional services and auditing. The interesting feature is that some compromise in the profession of accounting services by Andersen's was notable, given that there are noteworthy feature of stock manipulation, especially in financial statements of Enron attended and audited by Andersen's. 2. List three types of consulting services that audit firms are now prohibited from providing to clients that are public companies. For each item, indicate the specific threats, if any, that the provision of the given service could pose for an audit firm’s independence.
The stress of the audit partner is tremendous and choosing that profession is one that I would prefer not to undertake. The anxiety and pressure to certify that a company’s financial records are in good standing can be daunting. 3.) Independent auditors are sometimes perceived as the “necessary evil” by corporate executives because of the possibility of exposing corruption. To change this point of view an auditor can try to explain their intent to educate and improve the company’s policies, which can in turn lower costs.
Ensure information is up date and secured from a reputable source are the only ways you can be sure of its validity. Gathering raw data instead of correlated data can also prevent bias. Methods of collection are: * checking research provided by others * checking written material including referrals and client files * classification tools * individual research * information from other organisations * interviews with colleagues/customers * observation and listening * previous file records old information Outdated information gives misleading and in accurate facts which could have a huge impact on decision making. This information is only useful when looked at in conjunction with new facts and figures as part of a reflection process. It could have huge financial implications for businesses and presenting this misinformation to others could also mean damaging you reputation interpersonal skills Using interpersonal skills can be a very powerful method of collection especially in the workplace where it can help you to save time.
This is an implausible trend on the Balance sheet that BDO should have investigated further, especially with Leslie Fay’s outstanding Income Statement. 2.) First of all I would want to investigate vendor and customer accounts to reconcile payable and receivable amounts. Also, I would obtain bank statements and other lines of credit since the long term debt to equity ratio shows the company being highly leveraged.
Not enough money and too much stress lowers the quality of life that people have, and their standards of living also drop, as they are forced to get by with cheap, low-quality items (Nickels, McHugh & McHugh, 2010). Walmart has changed how the retailer and the manufacturer negotiate prices. The manufacturer used to be the one to tell the retailer, "I can make this for you for this much." But Walmart has become so big, so important, that now they
Financial Analysis A company’s strengths and weaknesses are better understood by their financial statements such as Income Statement, Cash Flow statement, and Balance sheet. As Financial consultants, our goal is to help CanGo understand their financial statements and where CanGo needs to improve to gain the competitive edge in the market. Every company needs to understand their own financials before analyzing the market or industry. After analyzing CanGo’s efficiency ratios, we found them to be very un-attractive for investors. For example, CanGo has a very high receivables turnover rate.
E2-1 (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. TRUE (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. FALSE. General-purpose financial reporting helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information provided in financial reports. However, an implicit assumption is that users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements.
1) Are information gathering techniques like rajaratnam’s common on Wall Street? If so, what could regulators, investors, and executives do to reduce the practice? Yes, I think information gathering techniques like rajaratnam so are Connie. In Wall Street. Although insider trading is illegal people will continue to do it as they see money as more important than what it right and wrong.
We are going to discuss the level of business risk for some of those factors. In the later part we will also calculate the volatility of some important accounts of the financial statements from the historical data given in the case to get the overall idea about its business risk. Centralized Authority:It has both pros and cons depending on the size of an organization. In a small organization the more the authority is centralized the less it faces business risk. But following centralized organizational structure in a huge corporation like AHP is questionable.
The Case Against Tipping Michael Lewis’ essay, “The Case Against Tipping”, is an arguable topic that can really get you thinking. Ever wonder why people tip? It is an incentive to do so or it is out of kindness of their heart. After reading Lewis’ essay, I have to say that he has never had experience working a job that relies heavily on tips for a salary. To have such a bitter attitude towards waiters or coffee shop workers shows me that Michael Lewis is not empathetic simply because he has never been in that situation.