ICS PRESENTATION CASE 2 Issue 3 : Auditor’s issue. The independence of auditor’s in Flat Cargo Berhad(FCB) is much questionable. This is mainly due to the fact that the appointed company auditor has been previously hit by another case of fraud in the other entity concern. This could be a very worring circumstances that the company has to face as there is high posibility of the auditor to commit fraud the second time in FCB. The lack of independence in the auditor could lead to inappropriate
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when will the fraudulent activity stop. The answer is never because as long we have businesses someone go to the dark side and do dishonest things. Since the SOX and creation of PCAOB and AICPA the activity has been a small amount and not as large as Enron and World Com. Also the number of auditors getting in trouble are in small amounts of activities. Even though they might think they were successful in manipulating the work papers, they will always get caught or do the right thing turn themselves in
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recordkeeping, as well as finding a balance in order to provide assurance and accurate recordkeeping for the business, for the investors and anyone else involved in the business. | Introduction In the wake of the US corporate scandals, such as Enron and Lehman Brothers, the integrity of accounting standards were under review. Shareholders’ confidence in financial statements and public accounting firms was shaken, due to the fact that the United States had always used rules-based accounting standards
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HealthSouth was one of the largest provider of outpatient surgeries in the United States. Not only the largest provider of outpatient surgeries in the United States but also the largest diagnostic and rehabilitative health care service in the United States. This was until March 19, 2003, when the Securities and Exchange Commission charged the company and Richard Scrushy with fraudulent account reporting of company finances. Scrushy and other executives from the finance and accounting departments
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What are the main reporting options available to government colleges and universities? Do they have to prepare fund statements? Explain. Universities are permitted to prepare financial statements the same way corporations report special purpose entities. In other words they can report business type enterprises as SPI’s and not report the funds in fund statements. Public colleges and university must follow GASB pronouncements like other governmental institutions. They are allowed to follow the
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New Century was related to accounting issues ignores the reality of the global credit crisis. This was a business failure not an accounting issue." The claims in the case are narrower than those made earlier this decade against companies such as Enron Corp. and WorldCom Inc., which collapsed after their accounting frauds unraveled. In those cases, accounting issues were deeply embedded in the companies, while New Century collapsed largely because of losses on
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Legality and Ethicality of Financial Reporting Janet Tran ETH/376 Kathrine Parks University of Phoenix/Axia July 21, 2014 Excello Telecommunications was presented with a dilemma on how the company should report earnings so that they would appear to have met earning estimates for the 2010 financial year. The CFO, Terry Reed, was concerned with how failure to meet earning estimates would affect bonuses, stock options, and the share price of
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Unethical Practices and Behavior in Accounting Name Institution Course Tutor Date Unethical Practices and Behavior in Accounting The Sarbanes-Oxley (SOX) Act of 2002 was passed by the congress to protect investors from fraudulent accounting activities by organizations (Hart, 2009). Investors depend on the information that they receive from accountants to make investment decisions and hence if incorrect information is provided, the investors make inaccurate decisions, which could be costly
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Mark Willis BUS 508 – Contemporary Bus November 15, 2013 Determine the most important five skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. As the annual price tag for fraud at American business soars to nearly $1 trillion, the demand for Certified Public Accountants that provide forensic accounting services has increased exponentially-
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revenue when the product was shipped to the customer provided that the firm had not retained any significant risk of ownerships or future obligations with the respect to the product shipped. Recommendation * Biovail should have their own code of ethics that can be used as a guideline by their employees * To ensure their sustainability, Biovail should avoid overestimate of products and overstating revenue. * Their employees, especially who are related to financial department, should well-understood
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