scandals Nov 18th 2004 |From the print edition * * NO ONE becomes an auditor because the job is adventurous. In recent years‚ however‚ the profession has been really rather racy. Auditors have been implicated in fraud after fraud. The Enron scandal brought down Arthur Andersen‚ which had been one of the profession ’s five giant firms. Now a scandal at Italy ’s Parmalat that was uncovered in late 2003 threatens Deloitte & Touche‚ another global giant‚ as well as Grant Thornton‚ an
Premium Auditing Financial audit Audit
Act of 2002Introduction2001-2002 was marked by the Arthur Andersen accounting scandal and the collapse of Enron and WorldCom. Corporate reforms were demanded by the government‚ the investors and the American public to prevent similar future occurrences. Viewed to be largely a result of failed or poor governance‚ insufficient disclosure practices‚ and a lack of satisfactory internal controls‚ in 2002 George W. Bush signed into law the Sarbanes-Oxley Act that became effective on July 30‚ 2002. Congress
Premium Audit Internal control Enron
Student Name: …………..………………… Student Number: …………………………….. COURSE 11362 – FNS10 DIPLOMA OF ACCOUNTING FNSACC506A – Implement & Maintain Internal Control Procedures Sakai - Assessment #1 S2 2014 Accounting & Finance – Meadowbank TAFE ASSESSMENT EVENT 40% Event 1 of 3 ASSESSMENT CONDITIONS/ INSTRUCTIONS TO STUDENTS Assessment should be submitted via the Sakai website by the due date This cover page must be attached / included with the submission of this
Premium Internal control Control key
ENRON: The Idiocy and the Irony Introduction Red flags were blinding as Enron learned about possible corruption with Enron Oil Trading in Valhalla‚ New York. After the merger between HNG and InterNorth‚ the Valhalla office‚ originally established by InterNorth seemed all but forgotten until quarterly and annual reports were due. Supervisors Tom Harding and Steve Sulentic were rarely on-site‚ preferring the comfort of offices in Houston. Louis Borget who established and operated the trading
Premium Enron
Opportunity- Niakan was responsible for the Remarketing department that Werle managed and the End of Lease department‚ thereby‚ making him in charge of all returning off-lease assets at the Jacksonville branch and this gave him opportunity to override controls as there was nobody supervising his work and decision making. Rationalization- even after being convicted of fraud‚ Niakan never admitted that he had wronged. He conveyed a sense of entitlement to the stolen funds because of the financial pressures
Premium Internal control Internal audit Auditing
sales tactics. He made sure that no one left without a purchase and did so by lowering prices. 6 months after company went public‚ Antar had an employee inflate inventory by $2 million which increased gross profit. Parties of fraud: director of internal audit staff‚ the acting controller‚ director of accounts payable. The family members were under qualified for the upper management positions. Answers to Questions: 1) Key Ratios Interesting to note that short term investment has a zero
Premium Internal control Auditing Financial audit
referred to in the professional and academic press as management advisory services or consulting‚ but NAS also includes compliance related services (such as taxation and accounting advice) and assurance related services (such as due diligence and internal audit). Compliance related services are closely linked to the annual financial reporting round. In the engagement of an external financial statement audit‚ the auditor becomes very familiar with the client’s company‚ its operation in business‚ its
Premium Audit Financial audit Auditing
The Effect of Sarbanes-Oxley (SOX) and the Public Companies Accounting Oversight Board (PCAOB) on Auditing Practice In business‚ there should have various rules and regulation governing in order to avoid mismanagement and frauds associated. In the United States‚ several bodies have been put in place to oversee‚ create registration‚ reporting and‚ providing transparency. Such bodies include‚ the Sarbanes-Oxley (SOX) which eventually resulted in the creation of the Public Company Accounting Oversight
Premium Internal control Financial statements Audit
and no prison time for devastating frauds‚ and a lack of independence of external auditors and the board of directors. With this in mind‚ I believe five advantages of the Sarbanes-Oxley Act of 2002 to be: 1. That it holds CEO’s accountable for internal controls so that they cannot claim that they did not know or understand what was happening in their company and place the responsibility for fraud on lower level staff (Section 302 and 404). 2. That it provides for disgorgement (Section 304)‚ prison time
Premium Corporate governance Sarbanes–Oxley Act Internal control
Accounting Oversight Board‚ or PCAOB‚ charged with overseeing‚ regulating‚ inspecting and disciplining accounting firms in their roles as auditors of public companies. The act also covers issues such as auditor independence‚ corporate governance‚ internal control assessment‚ and enhanced financial disclosure. The nonprofit arm of Financial Executives International (FEI)‚ Financial Executives Research Foundation (FERF)‚ completed extensive research studies to help support the foundations of the act.
Premium Enron Corporate governance Internal control