Auditing Standards Accounting 491 November 16, 2015 Dwayne Thompson Auditing Standards The art of auditing has evolved over several decades. The use of technology has changed the procedure significantly. Along with the evolution of standards and procedure are necessary to ensure economic growth and financial stability. Before 2002, it seems as though auditing took a reactive approach to questionable circumstances and dealings. Today the powers in control are producing a proactive approach
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Unfortunately this has not been the case in most situations until the economic downfall that started back in 2008. (The below statement is an example unethical corporate behavior.) “The sudden collapse of Enron, followed by other scandal such as WorldCom and a growing list of companies that have inflated earnings figures, has shaken the trust in corporations and their management. Each
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statement. Prior to 2002, investors had no protection against corporations that failed to fully disclose financial information. This led to some of the biggest corporate fraud cases, involving companies like Enron and WorldCom. In 2002, because of the unethical practices of both Enron and WorldCom, the government created the Sarbanes-Oxley Act of 2002. In order to understand this Act, it is important to know what the term stands for, the intent of the Act, and what the Act is about. According to SOX-online
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TOP CORPORATE SCANDALS WorldCom The U.S.’s second-largest long-distance phone company at the time, WorldCom/MCI filed the largest Chapter 11 bankruptcy in American history in July 2002. The company used fraudulent accounting methods, namely underreporting expenses and inflating revenues with bogus accounting entries, to hide its declining financial condition between 1999 and 2002. An internal audit uncovered approximately $3.8 billion in fraud in June 2002, and in 2003, it was estimated that the
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Chapter 2 THE AUDIT MARKET Revision: 11 September 2012 2.1 Learning Objectives After studying this chapter, you should be able to: 1. Distinguish between different theories of audit services including agency theory. 2. Understand drivers for audit regulation. 3. Understand the role of public oversight. 4. Distinguish between different audit firms. 5. Identify some current developments in the audit market. 6. Portray the series of industry codes of conduct and guidance 2.2 Introduction
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daily activities that require standards of ethical behavior to help dealing with the activities. In 2002, Congress passed the Sarbanes-Oxley Act (SOX) that strengthen corporate governance after the accounting scandals at companies such as Enron and WorldCom. Sox requires the audit committee of the board of directors to be total independent of the company’s management and follows basic principles of responsibility, accountability and transparency. Management should also establish an internal controls
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Unraveling the Details of 10 High-Profile Accounting Scandals written by: ciel s cantoria • edited by: Linda Richter • updated: 12/30/2010 Before digging into the dirty details of each of these major accounting scandals, we’ll take a look at some of the tools that were used to first detect them – including sophisticated accounting systems and advancements in high-tech communication. Technology Fighting Against White Collar Fraud Looking back at the 10 major accounting scandals that changed the
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Running Head: Is Ethics The Main Reason For Accounting Scandals? Is Ethics The Most Important Reason Behind Years of Accounting Scandals? Joshua A. Williams DeVry University Is Ethics The Main Reason For Accounting Scandals? Ethics: Is It The Most Important Reason Behind Years of Accounting Scandals? Ethics is a term that refers to a code or moral system that provides criteria for evaluating right and wrong (Spiceland, Spe, Tomassini, 2007). An ethical dilemma is a situation in which
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Waste Management Fraud Final Project BS 325 Dustin Nystel 12/17/10 Waste Management Overview Waste Management Inc. is a Houston Texas based company providing waste management and other services in North America. Yahoo financial summarizes the company as follows: Waste Management Inc. offers collections, transfer, recycling, disposal, and waste-to-energy services. Its recycling operations include collections material processing, plastics materials recycling, and commodities recycling
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Week 2 Assignment Question /Answers HRM320: Employment Law Professor: Justin Lawrence DeVry University Michael Nealy January 16, 2015 1. What do you think are some of the factors in the modern workplace that contribute to a theft of time? How can those factors be managed? * There are many factors that can contribute to theft of time in the modern day workplace, for instance should you decide to take an extended coffee break, or if you search the internet a little too long when you
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