AccountMate Project 1. Current environment and associated problem a. The scanning industry has exploded in recent years b. Administrative and accounting duties are becoming overwhelming for staff c. Cash flows are becoming a huge problem 2. Projected company growth and resulting workload a. 10 year small business is expanding at a rapid rate b. Currently experiencing an annual 40% growth rate c. Billing, invoicing, customer collections, accounting payable are behind
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accounting practices. There were rumors that they practiced bribery, insider trading, overstating revenue, understating expenses and a whole lot of other unethical accounting behaviors. What they were doing was unethical but perfectly legal, until the Sarbanes-Oxley Act was enacted. The federal
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Sarbanes-Oxley Act (SOX) The accounting industry as a whole endured quite a lot of publicity in last few years. Accounting scandals at mega-corporations likes Tyco, Enron, and WorldCom had made the public painfully aware of the limitations of internal accounting practices and the apparent ease with which corporate executives can manipulate the industry and report false financial information. In light of that limitation, the United States government passed the Sarbanes-Oxley Act (SOX) in 2002,
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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
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acceptable accounting principles and conducts. The Sarbanes-Oxley act of 2002, was enacted by The United States Congress to protect investors from fraudulent accounting practices, made by fraudulent executives in corporations. After the Scandal, the entire accounting world changed in many ways, that it created a new vision and ways of work. It sort of created a world of winds of anxiety for corporate executives and accountants. In the Sarbanes-Oxley act , there is a section call 302 that requires management
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distinguish fraudulent acts and misstatements in financial reporting. Apollo Shoes’ existing rule should require that the planning, sustaining, and implementing of guidelines and processes for financial reporting to be performed by management. The Sarbanes-Oxley Act of 2002 Section 404(a) suggests that executives of an organization should present a report with details regarding internal control and list the obligations of management for instituting and sustaining a sufficient structure of internal controls
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Case Study 1 – And the Fraud Continues Heidi Janis Casazza Strayer University ACC/571 Dr. Timothy Franklin Deleanor Brown January 27, 2013 Case Study 1 – And the Fraud Continues Since the turn of the century, many financial scandals have been discovered, such as MCI Communications Corporation (MCI). Financial scandals can be minimized by the use of effective internal controls. According to Chao and Foote, effective internal controls reasonably prevent material misstatements in financial
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scandals grew increasingly in the early 2000’s. Due to these scandals Senator Paul Sarbanes and U.S. Representative Michael Oxley sponsored a bill that is now known as The Sarbanes-Oxley Act of 2002. They refer to this bill as the SOX act. The reason this law was passed was to help eliminate the fraudulent activity that was taking place within the companies that are traded publicly in the United States. The Sarbanes-Oxley Act of 2002 holds those individuals accountable for unethical acts and behavior
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Resolution It was possible that Kozlowski and Swartz could have settled before going to trial, but they claimed throughout the proceedings that they were entitled to all the bonuses and loan forgiveness from Tyco. They were charged with 12 counts of first degree grand larceny, 8 counts of first degree falsifying business records, one count of first degree conspiracy, and one Martin Act count of securities fraud. The trial of Dennis Kozlowski and Mark Swartz began October 7, 2003. The jury was shown
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"Lessons from Lehman Brothers: Will We Ever Learn?" Maria Diana Lazaro, Freda Macaisa, and Patricia Molina MGTP/521 February 20, 2013 Richard Dettling "Lessons from Lehman Brothers: Will We Ever Learn?" #2.Discussion Question: What was the culture at Lehman Brothers like? How did this culture contribute to the company’s downfall? Discussion: The unethical culture by the top executives in the Lehman Brothers company was one of the major contributions to the downfall of this organization
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