The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley is not a set of business practices and does not specify how a business should
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few months after reporting a record profit for fiscal 1998, Just for Feet collapsed and filed for bankruptcy. Subsequent investigations by law enforcement authorities revealed a massive accounting fraud that had grossly misrepresented the company's reported operating results. Key features of the fraud were improper accounting for "vendor allowances" and intentional understatements of the company's inventory valuation allowance. K Y TOPICS: applying analytical procedures, identifying inherent risk
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personal ethics. The direct issues when dealing with ethics is that it cannot be measured or quantified it is intangible almost to a fault. A person’s ethical background can be affected by all types of outside forces such as familial background, financial status, and educational backgrounds as well to name a few. Ethical codes are informative and helpful. However, the motivation to behave ethically must come from within oneself and not just from the fear of penalties for violating professional codes
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largest operator of subscription television systems in the United States. Oak’s subscription television subsidiary also generated the majority -of the company's annual revenues by the early 19805. RAINY DAY RESERVES _ Exhibit 1 presents selected financial data for Oak Industries for the period 1978-1981. Oak established new sales and profit records each successive year during this period. In fact, in both 1980 and 1981 the company’s actual net income eclipsed the figure reported by the company. In
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Health Insurance Fraud By: WAHEED ALKHAMEES KHALED ALNAFEE Further Issues Hospital Administration PA 551 Master of Health and Hospital Administration (Parallel) King Saud University One:- Introduction Definition Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling
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AUDITING PROFESSIONAL 1 EXAMINATION - AUGUST 2011 NOTES: Section A - You are required to answer Questions 1, 2 and 3. Section B - You are required to answer any two out of Questions 4, 5, 6 and 7. (If you provide answers to more than two questions in this section, you must draw a clearly distinguishable line through the answer(s) not to be marked. Otherwise, only the first answers to hand for these four questions will be marked.) TIME ALLOWED: 3 hours, plus 10 minutes to read the paper. INSTRUCTIONS:
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com/?product=week-2-assignment-and-discussion Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ACC 403 Week 2 Assignment and Discussion, 3-25 (a-c) The following questions concern audit reports other than unqualified audit reports with standard wording. Chose the best reponse. The annual audit of Midwestern Manufacturing revealed that sales were accidentally being recorded as revenue when the goods were ordered, instead of when they were shipped. Assuming
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these payroll actions should be kept separate from one another, in accordance with proper segregation of duties. Segregation of duties can be described as the separation of related procedures that will prevent employees and officers from committing fraud. The duties that should be kept separate are authorization, record keeping, and custody. According to the AICPA,” no single individual should be able to (1) authorize a transaction, (2) record the transaction in the accounting records, and (3) maintain
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of confidence” on the part of the public in the accounting profession. List the parties who you believe were most responsible for that crisis. Briefly justify each of your choices. * Both the Securities and Exchange Commission and the Financial Accounting Standards Board had a hand in lack of the public’s confidence in the accounting profession. Due to the lack of regulation for SPEs at the time of Enron scandal, companies found it easy to exploit the “3 percent” loophole, which allowed
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Comptronix fraudulently issued financial statements for 1989, 1990, and 1991, before confessing in 1992 to their shenanigans. • The chief executive officer (CEO), the chief operating officer (COO), and the controller/ treasurer, who were all founders, colluded torecord fictitious assets and profits by overriding existing internal controls. • Top company executives began the fraud by understating cost of goods sold and overstating inventory in the interim financial statements filed in Form 10-Qs with
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