For example, mergers and acquisitions are perceived as the latest fashionable trend to grow the company market share and profitability due to synergies affect. But as the practise has shown, out of the latest mergers, about 75% did not perform as they were expected by the top management.
The Sarbanes-Oxley Act was aimed to facilitate and solve some of these very difficult problems in the accounting and management of the companies. The companies now are restricted to the amount of intangible assets they can show in their balance sheets, which reduces the moral opportunism problems in the company. The company has also currently to hire the auditors which are completely independent from the management of the company and cannot carry out any other than audit services for the company. This solves the problems of insider trading, where the management take advantage of their internal knowledge of the real company situation. On the other hand, the agency problem, though is aimed to be solved, is at much higher cost for the companies now. Also, the auditors are currently under a very big pressure currently to confirm the very big numbers of the intangible assets of the companies.
Previously, as the auditors were heavily involved in the businesses of the company, the moral of the corporate governance suffered. Also, the company has to hire independent directors which is aimed to solve the ethics problem when the directors make the decisions not in the best of the shareholders, creditors and good name of the company, but for their personal wealth. The amount of loans which could be granted to the top management is reduced which solves the possible opportunism by the management. In general, the Sarbanes-Oxley act was aimed to reduce the utilitarianism behaviour of the managers who are tempted to receive the greatest amount of benefits and pleasure possible over the pain of the other. On the other hand, the amount of the reduced bonuses to the top management can create other ethics problems where the management is not sufficiently motivated to perform their best as they would not feel their personal efforts are rewarded as they do not have the stake in the...
Accounting System Implemented at Chic Paints Limited Report submitted in order to fulfil the requirements of AAT Accounting Qualification Internal Controls and Fraud Accounting System Review Weaknesses in the Existing System and Recommendations Cost and Benefit Analysis Mapping of report to outcomes and criteria The purpose of this report is to present the findings of the evaluation of existing accounting system implemented at Chic Paints Limited. Chic Paints Limited hired me as an Accounting Technician of
In addition, there is no requirement, per se, for a master's degree; Within the total hour requirement, 36 semester hours of accounting and/or tax courses above the principles level and 39 semester hours of general business courses, including six semester hours in business law (Uniform CPA Exam). The Uniform CPA Examination consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and
The amount and complexity of information created and overseen by the auditors in terms of expenses, earnings, and taxes will also increase. The ongoing growth of global organizations is also demanding greater auditing expertise concerning international laws and trade in addition to international mergers and acquisitions. Following Enron and the other financial scandals, Congress passed laws to curtail organizational accounting fraud. This legislation requires public companies to maintain established internal
As both carriers, are concerned about addressing the various provisions in: the Companies (Audit, Investigations and Community Enterprise) Act of 2004 and Sarbanes-Oxley. This is accomplished by tackling those issues that contributed to a host of moral dilemmas through their ethics policies. As a result, they are addressing these regulations by: implementing new standards that are reflected in the code of ethics. Once this occurs, it means that it
I did not see anything that compared to this Evaluation Program at the other schools noted. Secondly, Empire State College is considerably more flexible than a typical college, because it is truly committed to meeting the specific educational needs of working adults. In order to accommodate my busy schedule, I will be able to take a full online program through the college. This is indeed an advantage, considering the number
Vignette Client Information: Alexandria Wright, 37 years old, female Description Alexandria Wright is a 37-year-old female who came to Dr. Hidlan for therapy. She is married and has two children, both boys. Alexandria also has three sisters: one older and two younger. The client mentioned that she had counseling a year ago, but has no history of psychiatric evaluation. Although the client has no official history of diagnosis, she has had some issues
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