hired to conduct an audit of Smackey’s financial statements and form an opinion about their financial statements, which will be used by the bank to help secure the loan. The Securities and Exchange Commission (SEC) has a significant influence on this particular audit. This significant influence can be observed within the auditing standards that have been followed by Keller CPAs in this audit. The six ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of Professional
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Applicable Laws Since United Thermostatic Controls is a publically traded company, there are several laws that the Company needs to abide by. The Sarbanes-Oxley (SOX) act of 2002, the Generally Accepted Accounting Principles (GAAP), and the AICPA Code of Conduct. In regards to this specific case, there are certain regulations that the auditors need to follow when they are performing an audit. Sarbanes-Oxley and United Thermostatic Controls When examining the criteria that need to be followed
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independence and requires additional disclosures to investors of public companies about the services provided by the independent accounting firms that are hired to audit the companies. The American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct has required accountants who perform attest services to be independent of their clients. The Sarbanes-Oxley Act lists the services that auditors can no longer provide to audit clients in Title II. The reasoning for this is that
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morals within the definition. One may differ with Stephens. While both ethics and morals relate to right and wrong, ethics is set rules of conduct that spells out how things are based on the rules for a specified group or action and morals are based on a person’s habits or principles and ideals as to their conduct. Integrity is a rigid adherence to a code of behavior. Ethics is society driven and is flexible to a point. Morals and integrity are internalized within self and are found to be fairly
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govern daily behavior and crucial decisions. From a professional perspective, ethics provide a given quality and ensures a fair practice. In terms of business, it is the moral duties and obligations that apply to various professions and their code of conduct. Ethics encompass a set of understood rules to guide the direction of a business, company, corporation, or organization. Ethics are essential and tremendously depended on in the profession of accounting. According to the Merriam-Webster dictionary
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handful of forward-looking accounting and technology experts came up with the idea of structured data for business information. Later that year, the American Institute of Certified Public Accountants (AICPA) was approached to spearhead the introduction of what was to become XBRL to the world. AICPA provided funding to begin research and development. In 1999, the prototype is completed and named XFMRL (Extensible Financial Reporting Markup Language). The prototype is describing XML as important for
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calculate deferred taxes, the correct way to report accounting changes and error corrections, and why a company would want to establish a subsidiary as a corporation. CPAs Professional Responsibilities According to the American Institute of CPAs (AICPA) CPAs not only have responsibilities to those who use their services but they must also cooperate with other CPAs to improve the accounting principles, maintain the public’s confidence, and carry out the responsibility of self-governance (www.aicpa
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standards into case analyses and essay responses. 2. perform as a group leader and as a group member to organize work and present it in a professional manner. 3. develop solutions in light of both general business ethics and the AICPA Professional Code of Conduct. 4. demonstrate facility with basic audit steps and the documentation of such work. 5. demonstrate how
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Global Perspectives on Accounting Education Volume 3, 2006, 27-48 ENRON AND ARTHUR ANDERSEN: THE CASE OF THE CROOKED E AND THE FALLEN A Gary M. Cunningham Visiting Professor Department of Business Administration Åbo Akademi University Turku, Finland Jean E. Harris Accounting Department Pennsylvania State University, Harrisburg Campus School of Business Administration Middletown, Pennsylvania USA ABSTRACT Outside the US, the failures of Enron and Arthur Andersen remain puzzles. How could the accounting
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Global Perspectives on Accounting Education Volume 3, 2006, 27-48 ENRON AND ARTHUR ANDERSEN: THE CASE OF THE CROOKED E AND THE FALLEN A Gary M. Cunningham Visiting Professor Department of Business Administration Åbo Akademi University Turku, Finland Jean E. Harris Accounting Department Pennsylvania State University, Harrisburg Campus School of Business Administration Middletown, Pennsylvania USA ABSTRACT Outside the US, the failures of Enron and Arthur Andersen remain puzzles. How could the accounting
Words: 9861 - Pages: 40
