Ethical and Legal Implications of Excello Telecommunications Cheryl Moore ETH/376 March 4, 2012 Susan Paris Ethical and Legal Implications of Excello Telecommunications Excello Telecommunications has suffered a downward financial spiral. This downward spiral will affect bonuses, share prices, and stock options (Mintz & Morris, 2011). Terry Reed, the Chief Financial Officer of Excello Telecommunications, frets over showing the downswing in profits. In searching for additional reportable
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International Financial Reporting Standards (IFRS) An AICPA Backgrounder 1 Table of Contents Get Ready for IFRS ........................................................................................ 2 Worldwide Momentum ................................................................................. 2 SEC Leadership in International Effort .......................................................... 3 The SEC Work Plan.................................................................
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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
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(“United”) corporate governance. Given the fact that United is a publicly owned company, the role that the Sarbanes-Oxley Act of 2002 (“SOX”) played in this case will be examined. The discussion will cover various regulations such as the AICPA Code of Conduct, GAAP, and the ethicality of the activities that occurred at United. United Thermostatic Controls manufactures thermostats for commercial and retail users. Like most companies its goal is to achieve increased sales and higher profits for
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3-45 The requirement of independence, both independence in appearance and independence of mind, is presented by the rules of the AICPA code of professional conduct. Every practitioner in public accounting profession is required to keep their independence and objectives; however, independence area is so complex that not all specific situation can be answered by AICPA. Instead, in most situations, the public accounting firm and auditors should make their own decisions by professional judgments to
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technical competency of potential audit staff and supervision * AS No. 10: Supervision of the Audit Engagement * AU 210 Training and Proficiency of the Independent Auditor - Consider if acceptance would violate regulatory or the Code of Professional Conduct 2. Using Ocean’s financial information, calculate relevant preliminary analytical procedures to obtain a better understanding of the prospective client and to determine how Ocean is doing financially. Compare Ocean’s ratios to the industry
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The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron The tale of Enron is a story of human weakness, of hubris and greed and rampant self-delusion; of ambition run amok; of a grand experiment in the deregulated world; of a business model that didn’t work; and of smart people who believed their next gamble would cover their last disaster—and who couldn’t admit they were wrong.1 Once one of the country’s foremost companies in regards to earnings, innovation, and reputation
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Professional ethics are a set of rules that concern the rights and wrongs within a given profession. They are known as the professional code of ethics or conduct. Ethics can be both, written and unwritten. The written ethics are basically the morals within a profession. On the other hand, the unwritten ethics are more personal or so obvious that they should not have to be stated. When an individual begins a new profession, they are usually aware of the professional ethics that concern their particular
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professional, the member need to release the information under certain circumstance. Here are four exceptions of Rule 301: 1. Compliance with rules 202 (compliance with standards) and 203 (accounting principles) as set forth by the AICPA Code of Professional Conduct. When a member discovers criminal activity or fraud, or an activity the member reasonably expects is criminal or fraudulent based upon his or her good faith belief that there may be a crime or fraud, on the part of his client or employer
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Independent Auditor), “The auditor has the responsibility to plan and perform the audit to obtain a reasonable assurance about whether the financial statements are free from material misstatements, whether caused by error or fraud.” (PCAOB, AU 110-02; AICPA 315; Whittington, 2012). Fraud is a pervasive problem. The Association of Certified Fraud Examiners’ (ACFE) 2006 “Report to the Nation on Occupational Fraud and Abuse” estimated that a typical organization loses 5 percent of its annual revenues
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