Accounting Article Analysis
One of the foremost problems facing the accounting profession today is the loss of respect that faces accountants in light of recent accounting scandals. In order to regain lost respect in the accounting profession an accountant must have integrity and ethics that are above and beyond the norm. This fact is true whether the accountant works for a business entity or for a government entity. In either situation the accountant is responsible for remaining steadfast, not only in professional behavior, but in personal behavior as well. In recent years, accountants have come under fire by the general public for unethical decisions, a reputation that, although only a few individual accountants were guilty, the entire profession was found guilty of, in the court of public opinion. Now, the accounting profession must be far more diligent in governing themselves, and in assuring those dependent upon their decisions, that they are above reproach. This is especially true of those accountants responsible for government funds, which can be scrutinized by the public. The public seem to have set more rigorous standards than business investors, of what is proper use of the funds available. They will not tolerate waste or misappropriation of funds and demand complete accountability. Accountants must stand ready, willing, and able to answer any and all questions that may be put forth, and be able to prove that the decisions that have been made were correct and proper. This includes not only following the letter of the law, but avoiding any decisions that, while being legal, would not be totally ethical and above board. An accountant is trusted with confidential information which must remain confidential, unless it has led or could possibly lead to illegal activity, in which case, of course, the information, must be reported immediately to the proper authority.
Throughout the past several years major corporate scandals have rocked the economy and hurt investor confidence. The largest bankruptcies in history have resulted from greedy executives that “cook the books” to gain the numbers they want. These scandals typically involve complex methods for misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of assets or underreporting of liabilities, sometimes with the cooperation of officials in other corporations (Medura 1-3). In response to the increasing number of scandals the US government amended the Sarbanes Oxley act of 2002 to mitigate these problems. Sarbanes Oxley has extensive regulations that hold the CEO and top executives responsible for the numbers they report but problems still occur. To ensure proper accounting standards have been used Sarbanes Oxley also requires that public companies be audited by accounting firms (Livingstone). The problem is that the accounting firms are also public companies that also have to look after their bottom line while still remaining objective with the corporations they audit. When an accounting firm is hired the company that hired them has the power in the relationship. When the company has the power they can bully the firm into doing what they tell them to do. The accounting firm then loses its objectivity and independence making their job ineffective and not accomplishing their goal of honest accounting (Gerard). Their have been 379 convictions of fraud to date, and 3 to 6 new cases opening per month. The problem has clearly not been solved (Ulinski).
The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
Data Trends created by California Current Ecosystem Long-Term Ecological Research Program are provided and used in the experimental process. It is known that climate change can very well affect factors such as stratification and upwelling in a marine ecosystem. However, will these changes affect prey availability to marine birds? Through the experimental process, relationships will be able to be determined relating the different marine populations being studied to one another. Trends and changes in abundance among prey, such as fish and krill, will produce trends and patterns regarding the density of sea birds. In Result, predator-prey interactions and relationships will be able to be charted in the marine ecosystem of Southern
It’s ok to go into all these lines of business, but they should use a
In the article “Remember, ladies, fitting into that bikini is as easy as (eating) pie”, Dave Barry, humor columnist for the Miami Herald, uses whimsy and wit to give his opinion on the fashion industry’s portrayal of the “ideal woman.” The media has successfully plastered the image of the “ideal” female form in every nook and cranny of society, and it seems that Dave Barry is sick of it. Though his article is short, his point is clear. Barry is saying that women need to stop listening to the fickle fashion world that tells them they need to look like this pencil-thin, “one-size-fits-all” image that they sell, and instead, learn to be comfortable in their own skin-cellulite and stomach pooch included.
With every business activity come opportunities for fraudulent behavior which leads to a greater demand for auditors with unscathed ethics. Nowadays, auditors are faced with a multitude of ethical issues, and it is even more problematic when the auditors fail to adhere to the standards of professional conducts as prescribed by the American Institute of Certified Public Accountants (AICPA). The objective of this paper is to analyze the auditors’ compliance with the code of professional conduct in the way it relates to the effectiveness of their audits.
Kinetic equations are utilized in this article to describe the dependence of the reaction between carbon and oxygen atoms and their environment. The research is trying to answer how the reaction area affects porous particles, especially carbon in this research article. Carbon combusts in two different modes, high-rate and low-rate. The high-rate combustion of the homogeneous reaction consumes the oxygen particles above the surface of the particle. The heterogeneous reaction inside the particle is endothermic, meaning that heat is absorbed thus decreasing the particle temperature resulting in a higher rate of combustion. The low-rate combustion does not allow the homogeneous reaction to happen, but instead only the heterogeneous reaction inside the particle, concluding that a higher temperature increases the rate of combustion.
Accounting ethics has been difficult to control as accountants and auditors must keep in mind the interest of the public while that they remain employed by the company they are auditing. The accountants should take into account how to best apply accounting standards when company faces issues related financial loss. The role of accountant is crucial to society. They serve as financial reporters to owe their primary constraint to public interest. The information provided is critical in aiding managers, investors and others in making crucial economic decisions. An accountant is responsible for any fraudulent financial reporting. Some examples of fraudulent reporting are:
“Accounting scandals are political and/or business scandals which arise with the disclosure of financial misdeeds by trusted executives of corporations or governments. Such misdeeds typically involve complex methods for misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of corporate assets or underreporting the existence of liabilities, sometimes with the cooperation of officials in other corporations or affiliates.” This misdeed adversely affects the reputation of the institutions of financial audit, the accounting standards, senior accountants and executives. Because of that the financial and accounting scandals considered of the most serious problems facing communities, because it spreads rapidly and extensively.
The aim of this paper is to provide the framework of the current professional accounting code of ethics. What are the ethics and how we define them? In this report we try to determine the main ethical principles that will establish the right and
Managerial accounting has changed over the years. Managerial accounting focuses on more than the financial aspect. We will be looking at how managerial accounting affects the business world today. Business also look to the economy, federal taxes, and the financial market so it can make the best decisions for their business.
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The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations. The Stock Market crash of 1929 and various scandals made auditors realize that their roles in society were very important. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. The auditors’ job became more difficult as the accounting principles changed, and became easier with the use of internal controls. These controls introduced the need for testing; not an in-depth detailed audit. Auditing jobs would have to change to meet the changing business world. The invention of computers impacted the auditors’ world by making their job at times easier and at times making their job more difficult. Finally, the auditors’ job of certifying and testing companies’ financial statements is the backbone of the business world.
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.
ABC LTD COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 NOTE 2012 Revenue 2 828,500 Cost of sales 3 (460,000) Gross profit 368,500 Other income 4 2,500 Operating expenses 5 361000 Profit before income tax 10000 Income tax expense (30%) 3,000 Profit for the year 7000 Other comprehensive income change in revaulation surplus 38500 Other comprehensive income for the year, net of tax 38500 Total comprehensive income for the year 45500 ABC LTD STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2012 NOTES 2012 ASSETS Current assets Cash and cash equivalents 6 100500 Trade and other receivables 7 45,200 Inventories 8 87700 Other current assets 9 7000