takes internal controls and reporting within accounting and finance and the way the public companies business being administered. One of the most important objectives of SOX is to oversee public accounting, publicity reporting business and the investment commerce. In order to follow SOX objectives and to watch the acts of public accountancy, SOX created the Public Company Accounting Oversight Board (PCAOB). This particular board directs the accounting line of work and publicity reporting business
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Audit Quality: Accounting Firm Governance When performing an audit, an auditor’s main goal is to confirm the accuracy of a company’s financial statements through an independent examination to find any possible material misstatements within the financials. In order to ensure this accuracy, it is the responsibility of the auditor and audit firm to perform the audit to the highest quality and standard. The Public Company Accounting Oversight Board (PCAOB) has continuously been searching for ways
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Entity’s Ability to Continue as a Going Concern An Amendment of the FASB Accounting Standards Codification® The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting Standards Codification is being amended. It also provides other information to
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ISSUES IN ACCOUNTING EDUCATION Vol. 28, No. 1 2013 pp. 77–92 American Accounting Association DOI: 10.2308/iace-50298 Going Concern Designations and GAAP versus Non-GAAP Earnings Metrics James L. Bierstaker, Thomas F. Monahan, and Michael F. Peters ABSTRACT: Many students have not spent much time studying or contemplating the importance of non-GAAP (Generally Accepted Accounting Principles) earnings to the ‘‘Street.’’ Based on the facts of an actual company and utilizing the financial information
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There are numerous threats to auditor independence. Derived from Porter, Et Al (2014) - Firstly, Self-interest threat which are dangers that emerge from auditors acting to their own interest. Auditors may support, intentionally or intuitively, those self-intrigues over their enthusiasm for performing a quality review. The auditors’ relationship with bluebird limited creates a financial self-interest because they pay the auditors’ fees. Auditors also have a financial self-interest if they own stock
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ACCOUNTING TRANSPARENCY Charles Katoroogo Prof Brandy Havens ACC 303 12/1/2013 ACCOUNTING TRANSPARENCY Accounting is mainly concerned with general rules, concepts and principles that are established with the purpose of governing different fields of financial reporting. Accounting principles are also known as accounting principles and guidelines, these acts as the base on which more complex and critical rules are based. The authority responsible for issuing the accounting standards (i.e. financial
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there was fundamental evidence that the accounts had been over accrued and that changes in the inherent business environment, the Company's business model or perhaps improved financial controls at the Company, supported such a change. The change would likely be classified as a change in an accounting estimate and based on the magnitude described in the case, the change would likely require disclosure. If a change in estimate affects several future periods and materially affects the current-period
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controls are implemented for protection. There are two goals that are important aspects of internal controls to keep the company protected. Assuring that the company’s assets are protected is one goal of internal controls. Some examples would be: stealing, embezzlement, and misrepresentation. The next reason that internal controls are implemented would be to make sure all accounting documentation/records are being kept in the appropriate way. This is to make sure careless mistakes are not being made
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the term “substantial doubt” to me would be the number 65. I chose this number because as an investor, I would consider this the threshold between possible and likely. In my mind, anything above 65 would create more than substantial doubt that the company is in trouble and would have to use extraordinary measures to fix their situation. b. After the auditor determines that substantial doubt exists about the client’s ability to continue as a going-concern, he should talk to management about what
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Internal Controls Internal controls are a necessary part of any company. They are comprised of all the methods and measures used by a company to one of two things. (Wetland, Kieso, & Kimmel, 2003,) They either safeguard a companies assets from things such as theft or unauthorized use, or they help to enhance the accuracy and dependability of a companies accounts and records. This second use helps to ensure that fewer errors are made wither intentional or unintentional. Without internal controls
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