Sarabanes-Oxley Act
Standard to most businesses is the idea that it is management's only responsibility in an organization to generate profits -- the best possible fiscal return for stakeholders. This template argues that the fiscal responsibility of the business is paramount, but that managers may not be the right level to handle a morally suspect global project. Additionally, focusing too farm on moral issues and too little on profit (Savage and McEltory, 2005). The entire purpose of doing business is to allow the organization to grow and evolve. Business would not flourish if there were no profitable advantages for both workers and the organization. A contrary view is called the "socio-economic" view of foreign trade. This view argues that organizations, who wish to compete and make a profit, must be amenable to societal changes. Simply looking at profit does not tell the entire story and is a rather myopic view for a company, especially one investing a great deal of money relocate.
Because of globalism, though, modern companies, especially those concerned with environmentalism, have had to think about global ramifications -- not just in the way they do business, but in the way they source materials, market, and even distribute products (Mayfield, 2003). These principles, and other stimuli, allowed a company (Enron) and an accounting firm (Anderson), to defraud the public, their shareholders, many of their employees by using fictional numbers to bolster their financial statements. This became a domino nightmare when the web of deceit was finally uncovered. By 2001, both companies filed for bankruptcy protection, Enron...
Sarbanes-Oxley Act of 2002 administration as also a majority of other western administration witnessed the collapse of corporate giants like Enron & Worldcom in the aftermath of noticeably fraudulent executive actions of these companies. This led to shareholders losing confidence and stringent laws was felt necessary in the form of new legislation to avoid repetition of Enron and Worldcom like incidents. The then President George W. Bush entrusted Senator Paul
Sarbanes-Oxley Act of 2002 in reducing fraudulent financial reporting Introduction to Fraudulent Financial Reporting Available research on financial statement fraud relies mostly on anecdotal evidence (for example, Wells, 2001, 2002, 2004a, and 2004b; Rezaee, 2003). This evidence offers advice on how mechanisms related to the fraud triangle can be curtailed. It leads to theoretical sense to reduce factors which lead to more instances of fraud. However, deterrence and established deterrence methods
New PCAOB Reporting Requirements A PRACTICAL GUIDE TO THE NEW PCAOB REPORTING A Practical Guide to the New PCAOB Reporting Requirements PCAOB is a Public Company Accounting Oversight Board established by Sarbanes-Oxley Act to oversee the auditing procedures of public companies in order to protect the interest of investors and enhance public confidence towards preparation of accurate audit information. The PCAOB attempts to protect the interests of investors as well as enhancing fair
"Yet earnings estimates have acquired a life of their own and often generate more attention from the media and analysts than a company's actual financial results." (Whalen, 2003). More conservative critics of analyst conflicts rules believe that they are a step in the right direction, but view them as a work in progress. For example, the Sarbanes-Oxley bill, which mandated many improvements in corporate managers' financial practices, did nothing to
Response to Self-Regulation Proposal Standards and Culture in Self Regulation Introduction The pitfalls of self-regulation are not unknown: object lessons abound in Tyco, WorldCom, Enron, Arthur Andersen, and several others (Pritchard, 2003). What to make then of a proposal for the implementation of self-regulation, thus decreasing regulatory oversight of our company? On the one hand, few firms are going to reject such a proposal as it means less red tape for them; on
S. GAAP," 2012). In other circumstances, IFRS requires the combination of two or more transactions when they are linked in a manner that the commercial impact can only be understood through referring to the transactions as a whole. Customer Loyalty Programs: Under IFRS accounting standards, loyalty or award programs in which a customer earns credit depending on their purchase of goods and/or services should be accounted for as multiple-element arrangements. Therefore, these
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