... April 28, 2013 This research will show that they are still individuals will try to make a name for themselves. They are ways for individuals to try be dishonest and thinking they are getting away with the unethical situations, but with the strict rules and regulations in place they will get caught fast. Given PCAOB oversight of accounting firms and the AICPA code of conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity. The PCAOB and AICPA has done a good job on the code of conduct but it doesn’t completely stop all fraudulent activity. I believe in my opinion you are still going to have fraudulent activity going on as long this world has business transaction taking place. I do agree that public accounting firm can successfully manipulate audit work papers and records if a client is doing fraudulent activity. The question always remain when will the fraudulent activity stop. The answer is never because as long we have businesses someone go to the dark side and do dishonest things. Since the SOX and creation of PCAOB and AICPA the activity has been a small amount and not as large as Enron and World Com. Also the number of auditors getting in trouble are in small amounts of activities. Even though they might think they were successful in manipulating the work papers, they will always get caught or do the right thing turn...
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...ENGAGEMENT QUALITY REVIEW Introduction Engagement quality review, also known as concurring partner review or second partner review, is not a new practice and was first mandated in 1977, but it has most recently been required by the Sarbanes-Oxley Act of 2002 for each registered public accounting firm to "provide a concurring or second partner review and approval of [each] audit report (and other related information), and concurring approval in its issuance...." It has been further clarified in the Public Company Accounting Oversight Board’s Auditing Standard No. 7 (AS No. 7), that was approved by the SEC in January 2010. Early guidance on engagement quality reviews was vague, and the practice was not standardized from firm to firm. The practice involves a second partner to review the engagement and serves as an internal check for engagement quality for the audit firm. Varying degrees of partner qualifications, involvement, responsibilities, scope, and documentation requirements existed. The first section of this paper explores the evolution of this practice in the standards and the surrounding auditing profession climate leading to the new standard, AS No. 7, adopted in 2009 by the PCAOB. In the second section, various research findings are presented and discussed. Finally, we draw conclusions on the current need for engagement quality reviews in the auditing profession based on our research. Evolution Many firms instituted concurring partner reviews...
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...standards, “the auditor’s consideration of materiality is a matter of professional judgment and is influenced by his or her perception of the needs of a reasonable person who will rely on the financial statements” (Public Company Accounting Oversight Board, 2011). This statement suggests that there are no hard and fast rules with regards to the determination of whether an adjustment is material or immaterial. In my opinion, much of the decisions are left to the auditor’s interpretation of the rule. Given all the rules and standards that both auditors and corporations must abide by, it would be wise to accept the proposed audit adjustments. Whether they are “material” or “immaterial” should not matter, because the fact that the auditor finds it necessary to propose the adjustment must be based on a rule or interpretation of a rule. If the company is secure in the abilities of its chosen auditor, they should allow the auditor to do his job. On the other hand, the auditor is supposed to accept engagements that he is confident that he can handle, and if, in his evaluation, and adjusting entry is advisable, he must have come to that conclusion based on a particular rule and law, and the auditor’s proposals should...
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...CASE 1.6 NEXTCARD, INC. Jeremy Lent, a chief financial officer (CFO) with Providian Financial Corporation decided to apply the marketing tactics used by Providian to establish an internet based company to offer Internet users a faster way to obtain credit cards. Lent hired dozens of marketing researchers to analyze the “surfing habits of Internet users. With this information the marketing team developed an Internet-based advertising campaign to target internet users that frequently used their credit cards and maintained large balances due to purchases made over the internet. NextCard advertised to new customers if they applied on line a response would be received within 30 seconds. Lents business model was a success and by 2000 and had more daily hits than any other credit card issuer. Other well established credit card affiliates referred potential clients to NextCard. NextCard had extended more than $1 billion of credit to internet customers but unfortunately profits were not immediate which the executives ignored to disclose in any press releases. A NextCard executive boasted in February of 2000 that the “company continues to beat our aggressive growth targets while maintaining very strong parameters and core elements of our business model” (Knapp, p 6). In 1999 the company produced a large loss of about $77.2 million. NextCard was able to take the company public with stock price initialing selling for $20 per share regardless of large losses for each reporting...
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...School Context, Student Attitudes and Behavior, and Academic Achievement: An Exploratory Analysis Theresa M. Akey, Ph.D. January 2006 This paper was funded by the William T. Grant Foundation and the Bill & Melinda Gates Foundation. Principal funding for First Things First comes from the Institute of Education Sciences, U.S. Department of Education. Additional support to supplement the core project comes from the Ford Foundation, the Bill & Melinda Gates Foundation, the William T. Grant Foundation, and the Ewing Marion Kauffman Foundation. A grant from the Pew Charitable Trusts for MDRC’s research methodology initiatives was an important source of funding for the First Things First Classroom Observation Study. Dissemination of MDRC publications is supported by the following funders that help finance MDRC’s public policy outreach and expanding efforts to communicate the results and implications of our work to policymakers, practitioners, and others: Alcoa Foundation, The Ambrose Monell Foundation, The Atlantic Philanthropies, Bristol-Myers Squibb Foundation, Open Society Institute, and The Starr Foundation. In addition, earnings from the MDRC Endowment help sustain our dissemination efforts. Contributors to the MDRC Endowment include Alcoa Foundation, The Ambrose Monell Foundation, Anheuser-Busch Foundation, Bristol-Myers Squibb Foundation, Charles Stewart Mott Foundation, Ford Foundation, The George Gund Foundation, The Grable Foundation...
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...Individual Research Project: Oracle Corporation - Business Structure and Valuation. Executive Summary This research project summarizes the business of Oracle Corporation (Oracle), the company’s key competitive advantage factors and the valuation of the company. In this summary, the corporate structure of Oracle, the company’s business and competitive advantage and the valuation of the company are discussed. Oracle is involved in the business of providing enterprise resource software to its customers and clients. This paper is structured into 3 sections. • Section 1 – This section discusses Oracle’s business of providing enterprise resource software. • Section 2 – This section discusses Oracle’s key competitive advantages within its industry. • Section 3 – This section describes the valuation approaches and methods utilized in arriving at a valuation for Oracle Corporation. Table of Contents Section 1 – The Need for Business Valuation. -1- Section 2 – Scope of SSVS1 -2- Section 3 – Valuation Approaches and Methods -3- Section 4 – The Valuation Report -4- Conclusion -4- Bibliography -5- Section 1 The Need for Business Valuation Noting the number of transactions (mergers, acquisitions, initial public offerings (IPOs), etc.), litigations (contractual disputes, bankruptcies, intellectual property...
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...Philosophy of Classroom Engagement and Management Cheryl Lindsey Grand Canyon University: EDU-536: Classroom Engagement and Management Dr. Strickland September 23, 2015 Philosophy of Classroom Engagement and Management This paper uses annotated bibliographies to discuss key topics of this author’s philosophy of classroom engagement and management. We will look at both, teacher’s role and student’s role. A closer look at the classroom atmosphere and appearance will help us understand how they can make a difference in the learning environment and student’s success. The discussion will end with a look into the relationship of student achievement and classroom engagement and management. Teacher’s role as facilitator Clapper, T. C. (2009, July). Moving away from teaching and becoming a facilitator of learning. Professional Against Improperly Labeling Active Learners: PAILAL Newsletter, 2(2), pp. 1-6. Retrieved from Academia: http://www.academia.edu/1180001/Moving_away_from_teaching_and_becoming_a_facilitator_of_learning Gone are the days of lecturing and teaching by the book. Today’s classrooms are built on helping students learn by engaging and motivating them. Teacher’s need to be flexible enough to stop in the middle of a teaching plan and change gear if they see the plan not keeping the student’s attention. The learning needs to be collaboration between students and teacher. As a facilitator, we guide the students to learning and beyond. It is the teacher’s job to...
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...was to note that a large body of research documents the importance of parental engagement and social involvement. There is a large body of research that has been ignored in third world countries. There is a need for further research to examine parental engagement from a broader perspective. The Purpose of the Research The purpose of this study was to examine teacher’s perceptions and beliefs about parent engagement in children’s school activities in the primary schools in Nairobi, Kenya. The study also investigated teacher’s self-efficacy in terms of efficacy to influence decision making, efficacy to influence school resources, instruction self-efficacy, and disciplinary self-efficacy, and efficacy to enlist parental engagement, efficacy to enlist community involvement, and efficacy to create a positive school climate. Research Questions There were three research questions, 1) What are the perceptions and beliefs of Kenyan teachers about school and family partnership? 2) What are Kenyan teachers attitudes regarding their self-efficacy in the school environment? 3) Are the correlations between teacher’s perceptions and beliefs about school and family partnerships and their attitudes regarding self-efficacy? The research questions were measurable and achievable. Definitions of Terms There were five definitions of terms use in this study that were operationally defined. Review of Relevant Research based literature The review of research related literature was very adequate...
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...is a skill that can be learned. The more you are immersed in it, the more you will get a feeling for its hallmarks. Here are a few of the most common characteristics of scholarly writing: • The wording in scholarly writing is specialized, requiring previous knowledge on the part of the reader. You will not be able to pick up a scholarly journal in another field and easily understand its contents (although you should be able to follow the writing itself). Scholarly authors assume that their audience is familiar with fundamental ideas and terms in their field, and they do not typically define them for the reader. • Scholarly writing communicates original thought, whether through primary research or analysis that presents a unique perspective on previous research. In a scholarly work, the author is expected to have insights on the issue at hand, but those insights must be grounded in...
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...The Use of Guided Notes for Active Engagement during Teacher-Directed Lectures By Anna Jessica B. Pantujan Holy Cross of Davao College, Sta. Ana Ave., Davao City Introduction It has been said that students learn by doing. It follows that if one increases the doing, the result is an increase in learning (Blackwell & McLaughlin, 2005). Research indicates that student achievement improves when teachers provide opportunities for active engagement (Konrad, Joseph & Eveleigh, 2009). The major educational goals of student understanding of content and application of skills are commonly pursued via lecture in classroom settings. Students are held accountable for obtaining information from the lectures, and performance is evaluated on class exams and quizzes. Therefore, students should take thorough notes during lectures so they can refer to the content at a later time (Boyle, 2001). Marzano, Pickering and Pollock (2001) identify note taking as one of the research based strategies for increasing student achievement. Despite the importance of this behavior, however, students are often poor note takers (Austin, Lee & Carr, 2004). Since note-taking can be a difficult task for some students, the use of guided notes can give students a standard set of notes for future references (e.g., tests and quizzes) as well as eliminate the possible frustration, lack of motivation, and off-task behaviors that may exist due to poor note-taking skills (Anderson, Yilmaz &...
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...CHAPTER 1 INTRODUCTION TO PROFESSIONAL RESEARCH Discussion Questions 1. Research in general involves the investigation and analysis of an issue in question. The researcher usually applies reasonable and reflective thinking to develop an answer to the issue or problem at hand. Research requires a clear definition of the problem, using professional databases to search the authoritative literature, reviewing and evaluating the data collected, drawing conclusions and communicating your results. 2. Accounting, auditing, or tax research involve a systematic and logical investigation of an issue or problem using the accountant’s professional judgment. Furthermore, accountants approach this problem using critical-thinking skills to obtain and document evidence underlying a conclusion relating to an issue or problem currently confronting the accountant or auditor. 3. Accounting, auditing, or tax research are necessary in order to determine the proper recording, classification, and disclosure of economic events; to determine compliance with authoritative pronouncements; or to determine the preferability of alternative accounting procedures. 4. The objective of accounting, auditing, or tax research is a systematic investigation of an issue or problem utilizing the researcher’s professional judgment to arrive at appropriate and timely conclusions regarding the issues at hand. 5. Research plays an important role within an accounting firm or department. It is critical...
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...Core Marker’s Comment Sheet Course Name: Advanced External Auditing (AU2) Assignment: 1 Modules: 1 and 2 General Comments If you have any comments or suggestions for improvements of these marker’s comment sheets, please forward them to your marker or CGA-BC. Your feedback is important to us. PLEASE NOTE FOR SUBSEQUENT ASSIGNMENTS AND EXAM PURPOSES When answering assignment (and examination) questions, students should carefully read the requirements of the question. Marks are awarded for each valid point included in your answer. The specific terminology of the question is important. If the question asks for items to be “listed”, it is sufficient to list the items without explanation or elaboration. If, on the other hand, the question requires that items be described, a mere listing will not result in full marks being awarded. In general, marks are awarded for each valid point made and you should be guided by both the wording of the question and the number of marks available in deciding how many points are required and how much detail is needed. To receive full marks, it is necessary to provide enough detail (as required by the question) about sufficient points (as determined from the number of marks available). In answering an assignment question, review the lesson notes and required readings carefully and attempt to include as many valid points as possible in your solution. Advanced External Auditing (AU2) is the second course in external auditing...
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...secure. Mandatory auditor rotation is defined as the obligation to limit the number of years during which the accounting firm may be the auditor of record for a client. The Public Company Accounting Oversight Board (PCAOB) is a strong advocate in favor of mandatory auditor rotation, while a majority of accounting firms are opposed to the idea. Problems are more likely to develop in the initial years of the audit relationship (fraud and bankruptcy) when the auditor tries to gain as much knowledge as possible about the client. According to an American Institute of Certified Public Accountants (AICPA) study (Church and Zhang 2006, page 3), audit failures are three times more likely to occur in the first two years of the auditor-client engagement. Auditor rotations have never been mandated in the United States, and I believe this should continue in the future due to the high costs and decreased auditor effectiveness that would result from continual changes in the auditor-client relationships. There are a number of reasons the PCAOB is in favor of mandatory auditor rotation. For example, PCAOB Chairman James Doty believes we should look at ways to protect auditor independence by considering a term limit on how long an auditor’s relationship with a client may last (Tysiac 2012, page 1). The PCAOB wants to consider the concept further by releasing a proposal and receiving feedback whether...
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...D I T I N G Disclosure of the Engagement Partner in the Audit Report An International Perspective on the PCAOB Proposal By Jason Bergner and Ling Lin n December 4, 2013, the PCAOB conducted an open meeting to reconsider its proposal to require the disclosure of the engagement partner (and certain other participants) in the audit report, as part of its efforts to improve transparency. The PCAOB is carefully considering the likely costs and benefits of this requirement before making a final decision (http://pcaobus.org/News/Speech/Pages/120 42013_Harris_Transparency.aspx). The authors present arguments for and against requiring audit partner disclosure and summarize the current practice and empirical findings in foreign jurisdictions, such as the EU and China. While the debate for the past five years has been an argument about the possible costs and benefits of a signature or disclosure requirement, the authors believe that the movement of the international community toward adopting common standards may eventually warrant a similar U.S. approach. O Debating the Issue The signature/disclosure requirement has been an issue for almost a decade, first appearing on the PCAOB’s agenda in 2005 (Tammy Whitehouse, “Divided PCAOB Presses for Names in Audit Report,” December 4, 2013, Compliance Week, http://www.complianceweek.com/dividedpcaob-presses-for-names-in-audit-report/article/323604/). The current proposal to disclose of the engagement partner in the audit report stemmed...
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...Ethics and Conduct made up of various rules to provide guidance to members on the performance of their professional responsibilities (Strayer, 2011). All of the rules set forth by the CPA are enforceable under the AICPA bylaws. These bylaws enforced by the Joint Ethics Enforcement Program which is sponsored by the AICPA and individual state societies for CPA’s. For the sake of this paper we will be looking at four individual case studies pertaining to rule 102 – integrity and objectivity, rule 201 – general standards, rule 202 – compliance with standards, and rule 501 – acts discreditable. Each case covers a violation of one or more of the rules and the enforcement actions taken against the individuals in violation. In 2005, David C Volpe of Stoughton, MA, acting chief financial officer and consultant of Chancellor Corp was found in violation of this rule as well as rule 501, acts discreditable. His actions pertaining to rule 102 were “directly or indirectly made or caused to be made materially false or misleading statements, or omitted to state or caused another to omit or to state material facts necessary in order to make Chancellor Corp’s financial statements not misleading to the outside auditors” (AICPA, 2005). These actions pertain to Chancellor’s financial statements filed with the SEC on forms 10-KSB and 10-QSB for the year ended December 31, 1998 and quarter ended March 31, 1999. The first case pertains to rule 102 of the code. Rule 102 states “In the performance of any...
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