“IASB and FASB: Two Bodies to Formulate Accounting Standards”. Accounting standards are an older set of standards stating how particular types of transactions and other events should be reflected in financial statements. In the past, international accounting standards (IAS) were issued by the Board of the International Accounting Standards Committee (IASC). Since 2001, the new set of standards has been known as the international financial reporting standards (IFRS) and has been issued by the International
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Accountant Responsibility Introduction Accountants and auditors help to ensure that firms are run efficiently, public records kept accurately, and taxes paid properly and on time. Accountants analyze and communicate financial information for various entities such as companies, individual clients, and Federal, State, and local governments. The provide accurate information to clients by preparing, analyzing, and verifying financial documents, budget analysis, financial and investment planning,
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and because accountants have clients’ who depend on that expertise, accounting can be included among the professions. Accounting ethics in the field of accounting refers to the guidelines (consisting of judgments and moral values) that a professional needs to follow while practicing accounting. People using the service of accounting professionals rely on their professional competency to take decisions and in the process also relies on the ethics followed by them. Roles an Accountant can fulfill
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| Copyright © 2009, 2008, 2007 by University of Phoenix. All rights reserved. Course Description In this course, students focus on the auditing practice performed by public accountants. Topics include the CPA profession and the auditor’s role, planning the audit, audit reporting and required communications, evaluating internal controls, audit programs for current assets and liabilities, and audit programs for other business
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direct connection with financial accounting standards. g. False. The IASB (International Accounting Standards Board) is an international body formed to create a common set of worldwide accounting standards. h. True. A CPA (certified public accountant) is an accountant who has received college-level accounting training, passed the CPA exam, and satisfied other state licensing requirements. CPAs work everywhere—CPA firms, law firms, government agencies, and universities, to name a few. i. True
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auditors, as well as the accountants generally needs very huge ethics levels (Stolowy and Breton, 2000). The shareholders of the firms, the potential shareholders, as well as the other people who use the financial statements that are prepared by the accountants generally depend on the annual financial statements of the firms given that they are capable of using the information in making highly informed decisions concerning investments. At the same time, they depend on the accountants’ opinion and the verification
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CHAPTER 1 The Role of the Public Accountant in the American Economy Review Questions 1–1 The “crisis of credibility” largely arose from the number of companies that restated their previously issued financial statements as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting
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(http://www.fasb.org/), and used to regulate fiscal accounting of public corporations. The FASB was formed in 1973, replacing the Accounting Principles Board and the Committee on Accounting Procedure of the American Institute of Certified Public Accountants before it. The FASB is a private body whose operation is to “institute and advance values of economic accounting and reporting for the supervision and instruction of the public, the FASB circulate GAAP. GAAP is important in accounting because
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committees of public company board of directors responsibilities since SOX 2. Sarbanes-Oxley section 404 on internal control 3. The accuracy of public company financial statements and the cost of capital for public companies 4. The main advantages and disadvantages of Sarbanes-Oxley Act B. Can legislation guarantee the accuracy of public company financial statements? Why have previous laws failed? Why CEOs and CFOs are paying so much attention to this law? Audit Committees of Public Company
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Memo To: John Clarks; President of LJB Company From: Certified Public Accountant Date: 1/22/2012 Re: LJB Internal Control Analysis Dear John, In regards of your company going public, you must be informed that under the Sarbanes Oxley Act all publicly traded U.S. corporations are required to maintain an adequate system of internal control. These internal controls are reliable and effective and if your company fails to comply, it will be a subject to fines, and company officers can be imprisoned
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