Financial statements

in the notes of the financial statements. I also think that Bloomfield’s opinion is similar to Karen Wensley’s concern. The maxim of selective obsfucation parallels a corporation’s attempt to be transparent. Corporations disclose as much as necessary to meet legal requirements. At the same time, they try to bury a reader in unnecessary details to hide any negativity about the company. Also, corporations always try to put the best spin on things to make their financial statements look more…

with a financial statement every month. But one day one of our freight company accounts called and questioned the amount they received, which did not match with their financial records they had received from our sales person or their own records. This was a financial disaster. They uncovered that she was overpaying herself and the CEO, and also paying a makeshift company. I personally think that an audit person within the accounting department should have reconciled the company statements to…

People who are doing business, or anyone in the accounting field would think about how the financial system is working. The authors wrote this article with their rights and freedoms, in order to better define the reader to see the end of this situation. By using simple words, documents drawn curtains in the accounting system are a major impact.…

The Sarbanes Oxley Act of 2002 which was also called SOX was published by the Congress in 2002 to protect investors’ interest (SOX, 2002). After the enactment of SOX, corporate financial reporting was more strict and normative. However, there were a lot of accounting scandals before 2002. And the Enron scandal attracted the most public attention of all the scandals. Enron was created in 1985 and was one of the largest energy companies around the world. However, in 2001 and 2002 the company was…

These events and circumstances include: macroeconomic conditions, condition of the market and industry, cost factors (increase in materials/labor that may have negative effect on earnings), overall financial performance, relevant company specific events (change in management, potential bankruptcy, litigation), sustained decrease in share price and a host of other circumstances. A company should always take the time to consider the extent to which the…

ensure the accuracy and reliable financial information to be presented to public. In brief, professional accountants should always observe his ethical behavior when conducting professional…

in specific industries do not need to report their profitability and financial forecast because of the nature of their industry but rather, just present pro-forma analysis to show the company’s operations. They are useful tools to help identify a company's core value drivers and analyse changing trends within company operations. Sometimes this is all that some investors are interested in so it’s irrelevant to present financial information. Pro-forma earning paint a hypothetical picture of what…

Assignment # 5 1. Visit the IMA website www.imanet.org . List, describe, and evaluate the requirements to become a Certified Management Accountant. What topics are covered on the exam for certification? Would you be interested in a career as a management accountant? In order to become Certified Management Accountant, the candidate need to be active member in the Institute of Management Accountants & Pay for the entrance fee. Candidate must complete the CMA certification within three years from…

OF FORENSIC ACCOUNTANTS A forensic accountant is an expert in accounting and financial methods. When the companies keep on growing in size and density, detecting fraud requires a forensic accountant to become skilful in an ever-increasing number of professional skills and competencies. Here are some of the broad areas of expertise for a forensic accountant: • There should be an in-depth knowledge of financial statements and the capability to critically analyze them. This expertise helps forensic…

In addition to the CAN-SPAM Act discussed above, a number of federal regulations, including the Health Insurance Portability and Accountability Act (HIPAA), the Health Information Technology for Economic and Clinical Health Act (HITECH), and the Financial Service Modernization Act impose specific requirements on organizations to protect the privacy of their customers’ personal information (Romney & Steinbart, 2012). Therefore, these are some of the other cases where the federal government…