According to section 301.4 of SOX 2002, the public company audit committee is required to implement procedures for the receipt, retention, and treatment of complaints received by the whistleblowers concerning auditing matters, internal accounting controls, or accounting. Also, the complaints have to be treated confidentially by the audit committee by making whistleblowing procedures for the submission around dubitable accounting or auditing matters to be anonymous. To encourage this, the audit…
required an annual management assessment of Internal Control and an external audit that needs to provide an opinion on its reliability. The section requires a report that acknowledge the responsibility of management for creating and maintaining internal controls in order to manage the risk that can potentially cause inaccurate, fraudulent or incomplete data to be disclosed to stakeholders. The report should also contain the effectiveness of the internal control structure as of the end of the…
as defined by Sarbanes-Oxley Act (SOX). The company was deficient in internal control process in the area of documentation and evidence that controls had been performed which could lead to material weakness. Sarbanes-Oxley (SOX) was created in 2002 because of all the accounting fraud that were being reported from publicly held companies. SOX job is to protect investors by preventing financial statement fraud, strengthen internal control, and punishing executives for fraud. To be incompliance…
There are a lot of many different companies in many different industries across the globe. One of those industries is the accounting industry. Which has many different careers and titles; there is tax accountants, forensic accountants, financial advisors, and auditors. This essay will discuss what the PCAOB does, some consequences if firms do not do their audit correctly, a recent lawsuit, and what they did in result after the lawsuit. Like other accounting firms, the PCAOB has several duties.…
Phar-Mor Inc. was one of the largest super discount drugstores in the early 1980’S.The Company was a complete success with over 300 discount super stores across the United States and employing thousands of workers. The company’s first signs of financial difficulty became obvious in 1988 as speculation increased about Phar-Mor’s decreasing profit margins. The fraud team consisted of several former auditors, including auditors who had worked for Coopers & Lybrand on prior Phar-Mor audits. The…
Subcategory 2: Describe the role of the government to regulate ethical issues. Identify three statutes identified in Chapter 7 and explain which ethical principles are reflected by those statutes. Government ethics accredited code of conduct that is attributed to a standard of professionalism for the individuals who work in government positions. Government ethics also deals with rules and guidelines concerning rights and wrong behaviors for those persons working in government, including…
The primary responsibility of an anesthesiologist is to provide sedation and pain relief to patients before, during and after any surgical procedure. Although a career in Anesthesiology can be financially rewarding and emotionally gratifying, a person must be willing to spend twelve years of their life attending medical school, becoming an intern and looking for a job practicing anesthesia. In order to attend a medical school, the student must complete a four year bachelor’s degree…
Upon initially reading the text "Minority Report" by Philip K. Dick the reader can infer that there is a power struggle going on between John Anderton and Ed Witwer. This perceived power struggle does not immediately make sense to the reader, however it later becomes an important part of the story. The system described also seems to predict the future in some way by using “precogs, capable of previewing future events and transferring orally that data to analytical machinery” (Dick 10) Therefore…
The goal of any accounting system is to provide useful information to those who make financial decisions. The nonprofit accounting system can be complicated- the organization must be able to have a system which will provide internal users with information to make decisions while conforming the general accounting principles for outside agencies such as the IRS. What complicates things is the reality that leadership and board members have varying levels of accounting/financial knowledge. One…
As discussed, I understand that the insurer’s preferred accounting provider was retained to provide their opinion regarding the claimant’s IRB entitlement, however, the insurer’s retention of a professional accountant does not undermine the claimant’s consumer right under SABS s.7(4) to retain their own professional accountant. The funds set aside for this type of report by the insurer is not discounted even if the insurer decides to hire their own third party accounting professionals. The…