Sarbanes-Oxley act, the AICPA Code of Conduct and the Generally Accepted Accounting Principles. Sarbanes- Oxley was created to protect investors from Corporations that may try to do fraudulent accounting activities. AICPA Code of Conduct sets standards for the professionalism and auditing for private companies, non-profit organizations, federal, state and local governments (“American Institute of Certified Public Accountants”, 2013). Generally Accepted Accounting Principles are used to prepare, present
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company. Breaking the law is not an option for the accounting department, so the decision needs to be evaluated carefully. Some of the laws that needs to be adhered to are Sarbanes-Oxley Act of 2012 (SOX), Generally Accepted Accounting Principles (GAAP), and the AICPA Code of Conduct. Marty and the accounting team have to come up with an ethical and legal solution for the shareholders. The SOX legislation was derived from such scandals as Worldcom, Tyco, and Enron. Senator Paul Sarbanes and Representative
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a requirement for large business with revenue more than 5 million. Uniformity of accounting information is important when making decisions for or about a business. A hierarchy of sources provides structure for the generally accepted accounting principles (GAAP). Along with the hierarchy of sources, the Financial Accounting Standards Board (FASB) identify qualitative characteristics to distinguish between useful and inferior information and to ensure accounting information assists in decision making
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Macroeconomics, Microeconomics, Money and Banking, Statistics, Organizational Behavior, Globalization: Business & Society in the Information Age. BASIC ACCOUNTING CONCEPTS AND BUSINESS STRUCTURE Generally accepted accounting principles (GAAP) are a set of principles, procedures, and authoritative standards set by policy boards and simply the commonly accepted way of recording and reporting financial information. The purpose of accounting is to provide the information that is needed for sound
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profession, the regulations included GAAP (Generally Accepted Accounting Principles), SOX (Sarbanes-Oxley Act of 2002), and AICPA Code of Professional Conduct. The team need to use these regulations as guideline to ensure that no illegal misstatement will be presented and get the best result from the sale of $1.2 million to Data Equipment Systems. GAAP and Excello Telecommunications GAAP is a set of standards and principles used in the United States to ensure formality and
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the decision defensible from a GAAP, Generally Accepted Accounting Practices, stand point. The firm must adhere to all the laws and regulations as they are set. Among the GAAP regulations there are also the SOX, Sarbanes-Oxley Act of 2002, and AICPA Code of conduct. The accounting team must ensure they make the right decision to help maximize the wealth of the shareholders while still following the laws and regulations.
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accounting principles but there are only a few that are accepted by law known as the generally accepted accounting practices. According to Wikipedia the generally accepted accounting practices are defined as“ accounting rules used to prepare, present and report financial statements for wide variety of entities, including publicly-traded and privately-held companies.” The principles are set by Financial Accounting Standard Board(FASB), Interpretations, and staff positions; APB Opinions and AICPA Accounting
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General accepted accounting principles (GAAP). These standards and principles are established by the Financial Accounting Standard Board (FASB), the American Institute of certified Public Accountants (AICPA) and the Accounting Principle Board (APB). The SEC Is federal agency established to “help develop and standardize financial information presented to the stockholders” (Kieso 2007 pg. 6). It is responsible to enforce financial principles created. The FASB, the AICPA and the APB are institution
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Accounting theory advanced in the United States when William Paton wrote the book ‘Accounting theory’ in which he introduced various assumptions that were basically the core principles of financial accounting. Similarly, John Canning presented a hypothetical structure which assessed assets and determined the accounting profit. This approach was analogous to the static approach of accounting theory that was presented in Germany
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the transaction must be recorded in 2010 and that whatever accounting is done be defensible using the Generally Accepted Accounting Principles (GAAP). This is essential in maintaining compliance with both state and federal legal requirements for financial reporting. GAAP reporting is mandated for use on a federal level for all financial reports. These principles are typically issued by the Federal Accounting Standards Board (FASB) but are regulated and enforced by the Securities and Exchange Commission
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