...protected. Assuring that the company’s assets are protected is one goal of internal controls. Some examples would be: stealing, embezzlement, and misrepresentation. The next reason that internal controls are implemented would be to make sure all accounting documentation/records are being kept in the appropriate way. This is to make sure careless mistakes are not being made and to address them if they are. “The Sarbanes-Oxley Act came into force in July 2002 and introduced major changes to the regulation of corporate governance and financial practice. It is named after Senator Paul Sarbanes and Representative Michael Oxley, who were its main architects, and it set a number of non-negotiable deadlines for compliance. The Sarbanes-Oxley Act is arranged into eleven 'titles'. As far as compliance is concerned, the most important sections within these eleven titles are usually considered to be 302, 401, 404, 409, 802 and 906. An over-arching public company accounting board was also established by the act, which was introduced amidst a host of publicity” (2003). When the act was put into motion, its purpose was to address flaws in internal controls as they were. Its main implementation was to assure that the means a company uses to compile develop, and display financial information meets the appropriate guidelines. A company who announces deficiencies in its internal control would probably experience a fall in the price of its stock for a couple of reasons. One of the reasons that a company...
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...Ethics and Compliance Team B FIN 370 April 23, 2012 Thien Ngo Ethics and Compliance Complying with the SEC Regulations The Securities Act of 1933 had two main purposes. The first purpose of the Securities Exchange Commission or SEC is to require investors to files significant information regarding the securities for public sale. The second purpose is to stop any fraud, or misrepresentation in the sale of these securities. The SEC is responsible to enforce laws to make sure organizations complying with the laws created. The Security Exchange Act of 1934 regulates the transactions of securities in the secondary market where Wal-Mart’s securities are exchanged. The SEC’s powers include enforcing the Securities Act, the Exchange Act, Sarbannes- Oxley Act of 2002, and other legislature (Sarkar, n.d.). Wal-Mart keeps the public and the SEC well informed of all significant information by the many publications they create and reports they must file according to the law. Wal-Mart creates an Annual Report, periodic news releases, Quarterly Reports, Global Sustainability Reports, Proxy Statements, and many more. These periodic filings are required to be filed with EDGAR, an online filing system. EDGAR stands for Electronic Data Gathering, Analysis, and Retrieval system. EDGAR’s purpose is to ensure efficiency and fairness of the securities market. Wal-Mart requires any person who owns more than 10% of securities of the organization to file reports of ownership and...
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...in presenting fraudulent bookkeeping records of company’s who ultimately committed white-collar crimes. Have you ever heard the figure of speech a “needle in a haystack” when referring to finding a small object in a large setting? The task of performing a very detailed search seems impossible. Leaving no stone unturned and demanding hours and hours of mental and manual labor. This is what a forensic accountant faces. By definition, a forensic investigation of any kind is conducted with the purpose of obtaining evidence that will be used in a court case. Forensic accounting is simply the analysis of financial documents use as tax returns, bank statements, canceled checks and the like, in search of proof of a criminal act, be it tax evasion, running numbers, embezzlement, money laundering, fraud by wire or securities fraud (DiGabriele, 2009). These crimes exists for the sole purpose of illegally making money. Leaving a paper trail pointing to criminal activity producing money coming into and leaving the organization. This is one reason the demand for forensic accountants or becoming more mainstream. Once used only by governmental agencies only like the IRS and the CIA to investigate and exposed the most unmoral crimes. More and more corporations are hiring forensic accountants. Some are even developing departments within the company for added security in return making a paradigm shift of the...
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...The Colourful Corporation [pic] Research Study: Prosperity without Growth? Executive Summary The aim of this report is to identify and define the conditions that create a sustainable economy and report on the effects they might have on the future governance, vision and strategy of The Colourful Corporation. In doing so the report has analysed the most pressing issues that relate to the development and continuation of a sustainable economy. The research has been undertaken at the request of the CEO and uses academic literature as its backbone. Overall the report found that there are many factors that are consistent with a sustainable economy with the following being researched: science & technology; ecology & sustainability; population, demographics, society & culture as well as economy, geopolitics & security. The report concludes that the future of the global economy will be built on innovation, low-waste, long-term planning and will be developed in harmony with the natural environment, and that these factors should be used in the development of the company’s future vision and strategy. The report recommends that the company: • Invest in Research & Development (R&D) • Decrease the use of chemicals, pesticides etc. in production & process work • Further research the implications of population growth and cultural homogeneity and its effects on the company. • Take a cautious approach to large financial investments Table of Contents ...
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...Financial Reporting Problems at Molex, Inc. (A) : . I n mid-November 2004, Molex's Board of Directors met to decide the future of Joe King and Diane Bullock, the company's CEO and CFO respectively. Molex's external auditors, Deloitte &c Touche, had accused both of failing to disclose an $8 million pre-tax inventory valuation error in a recent letter of representation to the auditors. In response, King and Bullock argued that at the time of their letter they had determined that the financial impact of the error was immaterial. Despite an inquiry by the Audit Committee, which concluded that management had not deliberately withheld information from the auditors, Deloitte & Touche was not satisfied. The audit firm insisted that it could no longer rely on Bullock's and King's representa-tions, and would be unable to complete its review of the first quarter results until representations were received from a new CFO and in all likelihood a new CEO. MOLEX BACKGROUND AND MANAGEMENT Founded in Lisle, Illinois in 1938 by Frederick Krehbiel, Molex Inc. designed, man-ufactured and distributed electronic connectors that were used by a wide range of industries.1 For example, in the computer industry its connectors were used to pro-duce computers, servers and printers; in the telecommunications industry they were used to produce mobile phones and networking equipment; the consumer products industry used Molex connectors to manufacture CD and DVD players, cameras, plasma...
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...Now the perfect companion for anyone sitting the PMI’s PMBOK exams THE DEFINITIVE 2ND EDITION PROJECT MANAGEMENT THE FAST TRACK TO GETTING THE SEBASTIAN NOKES AND SEAN KELLY GUIDE TO JOB DONE ON TIME AND ON BUDGET the definitive guide to project management In an increasingly competitive world, we believe it’s quality of thinking that gives you the edge – an idea that opens new doors, a technique that solves a problem, or an insight that simply makes sense of it all. The more you know, the smarter and faster you can go. That’s why we work with the best minds in business and finance to bring cutting-edge thinking and best learning practice to a global market. Under a range of leading imprints, including Financial Times Prentice Hall, we create world-class print publications and electronic products bringing our readers knowledge, skills and understanding, which can be applied whether studying or at work. To find out more about Pearson Education publications, or tell us about the books you’d like to find, you can visit us at www.pearsoned.co.uk the definitive guide to project management the fast track to getting the job done on time and on budget Second Edition SEBASTIAN NOKES AND SEAN KELLY PEARSON EDUCATION LIMITED Edinburgh Gate Harlow CM20 2JE United Kingdom Tel: +44(0)1279 623623 Fax: +44(0)1279 431059 Website: www.pearsoned.co.uk First published 2003 Second edition published in Great Britain 2007 © Aldersgate Partners LLP 2003 © Casnus Limited...
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