taking advantage in lax conditions and to profit by misrepresentation and manipulation. Hence, the main reason for establishing the securities legislation was because large security market requires operating procedures that would protect investors from fraud and guarantee an adequate supply of capital for economic growth. Background of the SEC The Securities and Exchange Commission (“SEC”) is one of several public and private sector rule-making organizations that have an effect on
Words: 7011 - Pages: 29
Sarbanes Oxley Act of 2002 Daniel Alvalle BUS 670 Legal Environment Instructor: Peter McCann 7/29/2013 If you were an investor would you want your money protected? Would you be skeptical about investing in companies since the securities fraud scandals that have happened recently? The answer is most likely, “yes”, to a certain degree. With the news about unethical business practices and companies not following regulatory guidelines, it is difficult to ignore the risk that is involved with
Words: 2407 - Pages: 10
company to establish procedures for the receipt, retention, and treatment of complaints received by the company regarding accounting, internal controls, or auditing matters. The audit committee is required to establish procedures for those complainants to be treated confidentially, and for the submission process to be anonymous for employees submitting the complaints about accounting or auditing matters. 2. The key criteria to create an effective corporate whistleblower hotline, is to ensure the
Words: 1041 - Pages: 5
Accounting Practices Name: XXXXXXXX oooo Accounting I-ACC100 Professor XXXXXXXXX Date: XXXXXXXXX Accounting Practices The year is 2011, and this country has been nearly crippled financially with the corporate accounting scandals. One of the most famous is the scandal of Enron, Waste Management, WorldCom, Qwest Communications, Health South Corporation, and then the infamous Bernard L. Madoff Investment scandal. The Medoff Ponzi scheme robbed millions of hard working people of the savings
Words: 533 - Pages: 3
exactly connect easily and it really pushed me to develop my understanding on my own. Although that isn’t the ideal outcome in a team setting, however in my opinion it actually helped me push further. GAAP is the US Generally Accepted Accounting Principles, the accounting standard used in the United States, while IFRS the International Financial Reporting Standards is used in a vast amount of countries around the world (Tilea, D. M., Bleotu, V., & Serban, A. A. M. (2013)). The Contrast IFRS
Words: 836 - Pages: 4
relationships could devolve into questionable behaviors. This article is in response to the regulations of the Sarbanes-Oxley act of 2002, that an independent auditing firm be contracted to audit a company in compliance with the Generally Accepted Accounting Practices. Prior to the act, company management hired the auditing firm, negotiated the fee and could request the firm perform other services. The Sarbanes-Oxley Act requires that an audit committee of the company’s Board of Directors hire the
Words: 815 - Pages: 4
could start operating under their own guidelines which may or may not involve integrity, responsibility, or accountability. Publically traded companies are required to have some type of corporate governance in place since the scandals from Enron and WorldCom. The case study that we are discussing is from United Thermostatic Controls. United has many different divisions and they are all decentralized according to their respected area. The southern division has been gradually decreasing in sales and
Words: 770 - Pages: 4
Sarbanes-Oxley The Sarbanes-Oxley act of 2002 is a law passed to control financial scandals such as Enron and WorldCom, and restore investor confidence. Sarbanes-Oxley, or SOX as many people call it, was considered a significant change to federal securities law, but at the time, the costs were unknown. Today after nine years, companies have realized that the costs of this act are not be stopping the fraud as originally expected, and it is having some unintended consequences to the securities industry. The
Words: 1333 - Pages: 6
IFRS Part One: 1. What is IFRS? IFRS is an International Financial Reporting Standards. It is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board. 2. What impact does IFRS have on students currently studying accounting? With over 100 countries currently allowing or requiring IFRS (including the European Union), and with multi-national
Words: 866 - Pages: 4
Forensic Accounting Forensic Accounting has a broad range of opportunity, and there are many different purposes for forensic accountants. Forensic Accountants are highly in demand during periods of financial crisis, and soaring bankruptcy rates (Chiang, 2013). The recession has generated a high demand for this type of accounting. Today we have decided to write about the two different types of forensic accounting, who they are employed by, and finally, how forensic accounting is emerging, and had
Words: 531 - Pages: 3
