PRINCIPLES OF AUDITING The field of accounting offers its candidates several career choices from Tax Accountant, Payroll Accountant, CPA, and Forensic Accountant just to name a few. Most of the jobs require a Bachelors’ Degree from an accredited university. Local accounting firms (AKA) public accounting firms provide services such as preparing taxes for business or personal, located within the city limits. The federal, state, and local taxes that are due from or to the business or individual
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Materiality The Sarbanes-Oxley requirement for companies to develop key control processes has brought new attention to the well-known concept of materiality. CPAs need to be able to identify key control exceptions and apply materiality to determine their financial impact. First we need to know what material is; in accounting something that is material is something that is significant. Material information is something that would vastly affect the financial statements of a company. If that material
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the auditors and accountants of the company (Duska & Ragatz, 2011). The accounting ethical breaches not only affect the organization, but also the stakeholders involved with the organization. The paper will discuss the accounting ethical breach in Enron. The paper will also discuss the ethical issues, accounting ethical breaches and the recommendations to prevent such breaches. Ethical Behavior in Current Business and Regulatory Environment With increasing number of corporate ethical breaches
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Excello Telecommunications: Profit at a Price There are moments in life that can forever define and potentially change not only an individual but an entire corporation as well. With the fiscal year of 2010 coming to a close, Terry Reed the operating CFO of Excello Telecommunications faced such a dilemma. For the first time, Excello was on track to finish out the year below anticipated financial goals, which would resonate throughout the company and its’ stock. This presented Excello with the
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financial and accounting scandals at major Fortune 500 companies. Enron, a Texas based energy company, lied about profits and was accused of concealing debts so they did not show up in the company’s accounts (BBC News, 8/22/2002). Arthur Andersen, an accounting giant, member of the “Big Six”, and Enron’s corporate auditor, collapsed completely after being found guilty of deliberately destroying evidence of its relationship with Enron (BBC News, 8/22/2002). Tyco executives L. Dennis Kowlowski and
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Enron case analysis: Occurred because: Leaders’ obsessive attention for the pursuit of profits: The issues that capture the attention of the leader (i.e. what is criticized, praised or asked about) will also capture the attention of the greater organization and will become the focus of the employees. If the leaders of the organization focus on the bottom line, employees believe that financial success is the leading value to consider and traits like integrity became a non-factor within the culture
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practices and possible solutions to improve the corporate accountability and the financial reports they convey to the public and investors. There have been a number of accounting fraud sandals in the last decade, some of these companies include; Enron 2001, Worldcom 2002, Tyco International 2002 and locally, Tom Peters Company 2008. As a result of these most recent accounting frauds, congress passed the Sarbanes-Oxley act in 2002. The Sarbanes-Oxley Act * Applies to publicly traded companies
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Baluyot, Krishia Mae E. BSAV-2A Scandals that Rocked the Accounting World ❖ Enron Scandal The Enron Corporation led to bankruptcy Last October 2001. It is an American energy company based in Huston, Texas, and the termination of Arthur Andersen, which was one of the biggest audit and accountancy partnerships in the world. Enron is also attributed as the biggest audit failure. Enron was founded in 1985 by Kenneth Lay after merging Houston Natural Gas and Inter North several years
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Reporting Practices and Ethics Tiffany L. Richardson HCS 405 July 18, 2011 Todd Brown Reporting Practices and Ethics Financial Management is a fundamental part to successful healthcare financial planning. Financial decisions are a necessary part of the day to day operations of any type or sized health care facility. These decisions are made in accordance with the facilities fiscal objectives and accounting practices. It is important that the individuals making these decisions follow proper
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que ellos puedan usarla para crear valor para los clientes. Pero en la auditoria de Enron olvidaron su filosofía y violaron varias leyes, la que no solamente afecto su reputación, si no que afecto la reputación de toda profesión de contable en general. Los errores que cometieron fueron la destrucción de documentos importantes y hacerse de la vista larga ante practicas contables fraudulentas de Enron, las personas a cargo no cumplieron con su trabajo ya fuera intencionalmente o por negligencia
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