For publicly traded companies--those which offer stocks and bonds for sale to the public--accountants also prepare regularly published reports of interest to those outside the organization who are concerned with the company's financial condition: investors and potential investors, creditors, and the general public. At ... ... middle of paper ... ...own on the profession--especially on the Big Six firms--a number of liability suits. The auditing industry is largely responsible for disciplining itself to ensure the independence of its auditors; and where an auditor differs from management as to the appropriate reporting principles, the auditor will require adherence to generally accepted accounting principles. The American Institute of Certified Public Accountants (AICPA) has developed standards of performance for auditors designed to ensure both independence and that adequate audit work is performed. When financial statements are issued a "clean opinion" but later are found to be misleading, the independence of the auditor may be challenged.
Financial statements also provide insight about whether or not the management of a company is participating in ethical behavior. Types of Accounting The two main types of accounting are financial accounting and managerial accounting. Financial accounting presents information to external users such as creditors, investors, the government and the public. Managerial Accounting provides information for internal users, such as top management in the form of budgets and forecasts so they can make informed decisions. All of the people that use accounting information rely heavily on accountants to make sure that all of the information is accurate, understandable, timely, fair, and relevant (Harrison, Horngren & Thomas, 2011) .
Principles of Internal Controls According to Sarbanes –Oxley Act, all U.S corporations that are publicly traded are required to maintain adequate system of internal control. Internal controls were created to assist organizations and companies to reach specific objectives and goals. Simply explained “Internal controls” are procedures and actions which organizations or companies monitor them. By using Internal controls companies can increase the likelihood of meeting certain goals as well as insure the legal compliance and efficiency in operations. The economic conditions are ever- changing, as are competitors; therefore, it is necessary for companies to watch closely demand and supply shifts as well as the company’s efforts to company with laws (Weygandt, Kimmel, & Kieso, 2008).
Through the program, participants will be afforded key opportunities to develop and demonstrate the following leadership competencies, in addition to formal world-class consulting and the sales training. Leadership in IBM have play a vital role make the company known to be a multi... ... middle of paper ... ... E. (2008). Turning talent management into a competitive advantage: An industry view. IBM Global Services, Somers, NY: IBM Corporation. Retrieved from http://www-935.ibm.com/services/ us/gbs/bus/pdf/gbe03083-usen-talentpart3.pdf Rowe, G., &Najed, H. M. (2009).
"Liabilitie... ... middle of paper ... ...per how important accounting systems has been for business such as corporation, Partnership, and Sole proprietorship. We defined what accounting information system is and how it works in business. We discussed why every business should have Accounting Information system because it helps us answer questions such as should we expend our company overseas? Do we have enough payroll for our employees? Accounting information systems can also help us understand what types of inventory we should use.
Other responsibilities include budgeting, cost management, and asset management. These accountants analyze and interpret the financial information corporate executives use to make sound business decisions. Internal auditors are very important to our system. When companies make information more timely, top management base their decisions on actual data, rather than their personal opinion. So these auditors verify the accuracy of their organization’s records and check for mismanagement, waste or fraud.
The board consists of nine members including one representative of the Congressional Budget Office, one representative of the defense and international agencies, one representative of civilian agencies, and three representatives from private sectors. FASAB was created to help form accounting principles and regulations that would help the federal government ensure that all financial reports were handled properly and met the requirements the board has set forth. This board established boundaries and rules for every cost under the s... ... middle of paper ... ...ng that the government would not accept anything less than accurate financial records. With increasing competition and education about business ethics gives the American business world a bright future at how to properly report its finances. Intensive accounting regulations will only help grow the American economy.
The balance sheet is a statement of assets, liabilities, and capital of a company. A balance sheet will help to show the financial position of the company. It is very important that we following the accounting cycle are important to ensure the accuracy of the financial statements. Additionally, financial statements are critical in helping management and investors make informed decisions. References Accounting Cycle | Steps | Flow Chart | Example http://www.myaccountingcourse.com/accounting-cycle/ Nobles, T. L., Mattison, B. L., Matsumura, E.M. (2014).
(Sox, 2006) The Sarbanes-Oxley Act of 2002 made publicly traded United States companies create internal controls. The SOX act is mandatory, all companies must comply. These controls maybe costly, but they have indentified areas within companies that need to be protected. It also showed some companies areas that had unnecessary repeated practices. It has given investors a sense of confidence in companies that have complied with the SOX act.
The act introduced changes to the regulation of corporate governance. The intent of the act is to protect investors from inaccurate financial reporting. It sets forth strict compliance regulations and harsh penalties for violations (Cross & Miller, 2012). The Sarbanes-Oxley Act is made up of eleven titles designed to restore public opinion and trust. The titles address issues independent of one and another, but it is the fluidity among them that allows them to operate as one.