PCAOB Proposes a New Auditing Standard to Enhance the Auditor's Reporting Model Also Proposes a New Related Auditing Standard on the Auditor’s Responsibilities for Other Information in an Annual Report Washington, DC, Aug. 13, 2013 The Public Company Accounting Oversight Board today proposed for public comment a new auditing standard and related amendments to enhance the auditor's reporting model. The proposed standard would retain the pass/fail model in the existing auditor's report, but would provide
Words: 654 - Pages: 3
setting up methods and measures within an organization to establish control. Companies such as Tyco and Enron are examples of company destruction from a lack of internal control. With a strong internal control in place companies are able to protect their assets. This includes employees engaging in theft or robbery and takes care of any unauthorized use of any of the assets. Companies are also able to have reliable accounting financial records. Internal control helps to ensure accuracy in the work.
Words: 1046 - Pages: 5
corporate governance and increase the transparency of financial audits” (Cosgrove, 2006). This was an effort to help curb unethical behavior in the corporate world. The effort was worth it, considering that “that 18% of employees perceived their companies as having a strong ethical culture - more than double the 2007 rate” (Bannon, 2010). This still does not stop all unethical behavior in the workplace. There are several reasons that unethical behavior takes place, but today we will focus on one…following
Words: 391 - Pages: 2
Kehbila Lima Issues in Accounting Research Prof. Allen J. Rubenfield Paper 2 The Jane, CPA Dilemma Independence is perhaps one of the most important attributes of the public accountant. Before pursuing a course of action to resolve ethical dilemmas, a CPA may want to consult with legal counsel, applicable professional bodies, and appropriate firm or employer personnel. The AICPA[1] provides
Words: 1071 - Pages: 5
expenses; and so forth. Comparative financial statements present several years of financial information side by side for ease of recognizing trends and changes in amounts. Consolidated financial statements present combined information for the parent company and all subsidiaries. Objective: Financial
Words: 2258 - Pages: 10
independent federal agency which is responsible for regulating securities markets where stocks and bonds of major companies are traded. There is also the Financial Accounting Standards Board the FASB that is the largest independent US body that is responsible for establishing and interpreting the accounting standards and practices that are known as the Generally Accepted Accounting Principles (GAAP). The American Institute of Certified Public Accountants (AICPA) is a regulatory body that develops
Words: 331 - Pages: 2
now! CEO’s must continue to be held accountable for the accuracy of their financial statements, and the performance of their company. To assure the accuracy of a publicly traded company’s financial status reporting, an additional requirement of an outside industry experienced auditing firm is needed, as well as performance based pay contracts for publically traded companies’ officers. The goal is simple, change the mindset of CEO’s, boards of directors (BOD’s), and shareholders by teaching them the
Words: 2137 - Pages: 9
A Letter from Prison: Background: Introduction to Accounting Ethics. Reading Assignment: The case Summary of Sarbanes-Oxley (2nd page of this document) Pages 18-19 of the text. Assignment Questions: 1. What did Stephen Richards and other members of Computer Associates management do? 2. What impact did these actions have on financial statement users? 3. What were the motivations for these actions? 4. Do you believe the actions taken by Richards and other members of Computer Associates' management
Words: 425 - Pages: 2
financial scandals that emerged due to Enron, Tyco, Global Crossing, Arthur Andersen and WorldCom to protect shareholders and the public from accounting errors and unethical business practices. It brought major changes to the regulation of financial practice and corporate governance. The Act covers issues related to creating a public company accounting oversight board, auditor independence, corporate responsibility and improved financial disclosure. The Act states that all business records
Words: 694 - Pages: 3
Sarbanes-Oxley Act 2002 Aracheal Ventress Accounting 561 February 3, 2014 Professor Myrtle Clark Sarbanes-Oxley Act 2002 Corporation scandals, such as Enron, initiated the enactment of the Sarbanes-Oxley Act 2002 also known as SOX. Prior to its existence, the public became aware of Enron’s weak internal control, misleading earnings reports, and conflict of interests between executives and their chief auditor.Misleading information provided in false earnings reports allowed Shareholders
Words: 1415 - Pages: 6
