Early Accounting * Accountancy has its roots in the earliest history of civilization. With the rise of agriculture and trade, people needed a way to keep track of their goods and of transactions. Around 7500 B.C., Mesopotamians began using clay tokens to represent goods, such as animals, tools, food items or units of grain. This helped owners keep track of their property. Instead of counting heads of cattle or bushels of grain every time one was consumed or traded, people could simply add or
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1. What does forensic mean? From Latin forensis ‘in open court, public,’ - Relating to, used in, or appropriate for courts of law or for public discussion or argumentation. - Of, relating to, or used in debate or argument; rhetorical. - Relating to the use of science or technology in the investigation and establishment of facts or evidence in a court of law: a forensic laboratory. http://www.thefreedictionary.com/forensic 2. Define forensic accounting. Forensic accounting is a type
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catastrophic business failures was Enron. Unveiled in October 2001, this scandal involves the renowned energy company Enron in conjunction with the accounting, auditing and consultancy schemes of Arthur Andersen. Enron disgraces ultimately lead the organization to a scandal that resulted in the biggest economic failure in United States history (TIME Enron, 2001). The Enron scandal also destroyed one of the foremost accounting agencies in the world, Arthur Andersen. Enron’s downfall was the
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James Erkhart Professor: Ashley Harper Contemporary Auditing April 28, 2013 This research will show that they are still individuals will try to make a name for themselves. They are ways for individuals to try be dishonest and thinking
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report to shareholders”, which a company must send to its shareholders when it holds an annual meeting to elect directors (though some companies combine the annual report and the 10-K into one document). The 10-K includes information such as company history, organizational structure, executive compensation, equity, subsidiaries, and audited financial statements, among other information. Form 10-KSB: Similar to the SEC Form 10-K, the Form 10-KSB contains crucial information for investors researching
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important people involved in this case, and also the major ethical issues about this scandal were analyzed. At last, the conclusion part discussed what we should do to avoid another Enron. 1. 2. Statements of Facts 2.1. A Brief History of Enron Since found in 1985 as an interstate pipeline company, Enron had been a power supplier to utilities. Its business began through the merger of Houston Natural Gas and Omaha-based InterNorth. In the following 20 years, Ernon grew quickly
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(CBS) The stock markets got another king-sized jolt Tuesday as WorldCom revealed what could turn out to be one of the biggest accounting scandals in U.S. history. The telecommunications company said it had fired Chief Financial Officer Scott Sullivan, and accepted the resignation of senior vice president and controller David Myers, after an internal audit found improper accounting of more than $3.8 billion in expenses over five quarters. The misstated billions are also very bad news for ordinary
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debt in confusing partner agreements. Enron could not deal with their debt so they did the only thing that was possibly left to do. Enron filed for bankruptcy. This went down in the books as one of the largest companies to file for bankruptcy in the history of the United States. In just three months, their share price dropped from $95 to below $1. Enron was
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the future. As a response to these large frauds, in 2002, the US Government passed the Sarbanes – Oxley Act of 2002 (SOX) and the American Institute of Certified Public Accountants (AICPA) issued Statement on Auditing Standards No. 99(SAS No. 99) to improve investor confidence and the auditing function’s ability to detect material frauds. The intent of this thesis was to look at the fraudulent factors associated with several recent corporate frauds and compare them to the standards set by SAS No
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Risk-based Auditing PHIL GRIFFITHS CHAPTER 1 What is Risk-based Audit? The Internal Audit identity crisis Let’s face it, if you are reading this book, you are probably either already an auditor, preparing to become one or responsible for managing or overseeing the function. The other possibility is that you are considering a role in Internal Audit – if this is the case I hope to be able to whet your appetite and show you what a wonderful opportunity it brings. Whichever category of reader
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