law that set new or enhanced standards for all U.S public company boards, management and public accounting firms. - It established a series of requirements that affect corporate governance in the U.S. and influenced similar laws in many other countries - The Sarbanes-Oxley Act of 2002 is mandatory. ALL organizations, large and small, MUST comply - Historically, Sarbanes-Oxley (SOX) was passed to combat corruption at big public companies like Enron, WorldCom, Tyco, Adelphia, Global TelLink, HealthSouth
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Financial Reporting • Financial statements and financial reporting • Accounting and capital allocation •Stakeholders Objective of Financial Reporting •Management bias •Users’ needs Standard Setting • Need to develop standards • Parties involved in standard setting • Standard setting in a political environment GAAP • GAAP hierarchy •Professional judgement • Role of ethics Challenges Facing Financial Reporting • Globalization of companies and capital markets • Impact of technology • Changing nature of the
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Wal-Mart Vs. Amazon University of Phoenix ACC 291 Principles of Accounting II Wal-Mart vs. Amazon. Who do you think might win? Well, these are two of the nation’s largest retailers. Wal-Mart mainly sells in-store while all of Amazon’s sales happen online. So why could this competition between two of the largest retailers cause unethical practices and behavior in accounting? Wal-Mart is “considering using its own shoppers as delivery people, providing some kind of incentive to drop off online
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The Coca-Cola Company Catherine Rodriguez ACCT/280 January 25, 2011 Maria Nunez The Coca-Cola Company John Pemberton was an Atlanta pharmacist who was the creator of the Carmel-colored liquid that was added with carbonated water, and then named Coca-Cola by Pemberton’s bookkeeper, Frank Robinson (The Coca-Cola Company, 2006). The first year Coca-Cola was sold they only sold nine glasses a day. 10 years later the Cola-Cola Company had produced more than 10 billion gallons of syrup. Pemberton
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Financial Accounting Concepts and Principles Renee’ Baker April 3, 2011 Internal Controls. Internal controls are a certain system that includes actions and methods with emphasizing organization’s security and intention to protect its assets and keep the accounting process trustworthy and precise (Weygandt, Kimmel, Kieso, 2008). Protecting a company’s assets is necessary because of the danger resulting from robberies or even employee theft. Improving or keeping the accounting process
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Accounting Regulatory Bodies There are many different types of regulatory bodies to regulate financial accounting and financial reporting. These types of regulators help make financial reports and accounting easier to read and understand. End users to these reports include investors, lenders, etc. The Public Company Accounting Oversight Board (PCAOB) was created to oversee the auditors of public companies to protect the interests of investors and further interest in the preparation of
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Swinton & Associates Accounting Firm 6711 14th Street Washington, DC 20310 202-678-0076 November 27, 2011 Mr. John Jones: President LBJ Corporation 100 E Main Street Alexandria, VA 22303 First and foremost, thank you for selecting Swinton & Associates Accounting Firm to evaluate LBJ’s Internal Control Systems. I realize that there are a plethora of accounting firms that you could have chosen therefore; I wanted to express my sincere gratitude for trusting our firm to
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Audit Considerations PCAOB – Public Company Accounting Oversight Board Staff Audit Practice Alert No. 3 – Audit Considerations in the Current Economic Environment (December 5, 2008) Representation Letter A letter from management to the auditor representing that the financial statements are fairly presented. The letter is addressed to the independent auditor, and dated at the date of the auditor's report. It is signed by members of management whom the auditor believes are responsible for
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ACCOUNTING STANDARDS AND REGULATIONS ACCOUNTING STANDARDS & REGULATIONS During the year 2002, the accounting profession was subjected to a series of highly publicized scandals. For example, it was discovered that the prestigious Arthur Andersen firm had played a role in the fraudulent reporting practices that led to the bankruptcy of the Enron Corporation. Andersen accountants had helped the company hide its losses, and had shredded important documents that were relevant to the case. In June
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HS Accounting LLC Proposal for Going Public Prepared: Hector Serrano ACCT-504-63660 Accounting Financial Professor Jones Kasonso 4/4/2014 Table of Contents A. Introduction 1 B. New requirement on going public 1 C. What the company is doing right 2 D. What the company is doing wrong ……………………………………………...…. 3 E. Conclusion 3 F. Reference 5 A. Introduction Per request of the President of LJB Company HS Accounting Firm has reviewed the company’s existing internal control
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