ASR 22420-Part 1 of the Assignment Part A Accounting numbers take part in an importance role of decision making‚ contracting and stewardship. Besides‚ accounting numbers are used mainly for decision making. They are also measures used in management compensation contract because of the following reasons: According to Ross et al (2011)‚ in order to motivate managers act in the shareholders’ interests. It is known that a company is owned by its shareholders but the management is separate from the
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legislation since the Securities Act and Securities Exchange in the 1930s. It is mostly understood as a process that implemented major reforms on the particular schedule specified by Congress. Many large companies such as Arthur Anderson‚ Enron‚ and WorldCom were affected. The Enron and WorldCom disasters offered the motivation from the community outrage that required many of the on hand reform proposals into effect for publicly traded companies. Many of these existed for years lacking adequate political authority
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e Unit One Alternative Seminar Assignment Carsondra Deanea Grimes MT 217 Finance Professor Sandy McDonald Kaplan University Date: 10/30/12 There are three main aspect of finance of business organizations as described below. The first of the three are investments which is the area of finance in which focuses on interest rates and mortgages and returns and falls on investment activities. This area is critical for a successful business as its
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Challenges AbdulFattah AbdulGaniyy Department of Accountancy‚ The Federal Polytechnic‚ Kaura Namoda‚ Nigeria. * E-mail of the corresponding author:abuaishah1425@yahoo.com Abstract This paper discusses the history of audit and its development particularly Enron and Worldcom scandals as some of the audit failures that increased the challenges of auditing firms to remain unbiased and independent of their clients. Secondary data was used to review the existing literature on the subject. Descriptive method was
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familiar with the client’s company‚ its operation in business‚ its accounting system‚ and all aspects of the affairs related to financial scope. Thus‚ the auditor is a qualified and experienced individual who comes to the auditee as an independent objective outsider‚ divorced from the day-to-day running of the entity. These factors place the auditor in an ideal position to observe where improvements can be made. The auditor is able to advise the auditee on matters such as strengthening internal control;
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management of shareholders ’ investments in the company. This means that the business is using the money and trust of their clients to make returns on their investments. If the executives mismanage those funds‚ potentially causing a collapse like the Enron scandal‚ the shareholders lose everything they have. However‚ with false accounting reporting‚ it was easier for these executives to avoid prosecution. The Sarbanes-Oxley Act of 2008 mandates that businesses operate and report ethically‚ with full-transparency
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accountants or auditors do. My main points in this research paper are accounting scandals‚ the story of one of the biggest accounting scandals which is the collapse of Enron‚ and how future accountants view the profession of accounting. So‚ I will start by explaining what accounting scandal really is and how it works. Then I will use Enron scandal as an example of accounting scandal. After that‚ I will take the stance that future accountants will neglect and ignore the accounting principles even more
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Strategy as Simple Rules by Kathleen M. Eisenhardt and Donald N. Sull Reprint r0101g When the business landscape was simple‚ companies could afford to have complex strategies. But now that business is so complex‚ they need to simplify. Smart companies have done just that with a new approach: a few straightforward‚ hard-and-fast rules that define direction without confining it. as Simple Rules ILLUSTRATION BY MIN JAE HONG S by Kathleen M. Eisenhardt and Donald N. Sull ince its founding
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Albert John Dunlap (born July 26‚ 1937) is a retired corporate executive. He was best known as a turnaround specialist and downsizer. The ruthless methods he employed to streamline ailing companies‚ most notably Scott Paper‚ won him the nicknames "Chainsaw Al" and "Rambo in Pinstripes". However‚ his reputation was ruined after he engineered a massive accounting scandal at Sunbeam-Oster. Dunlap believed that the primary goal of any business should be to make money for its shareholders. To that end
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profitable growth in both the top-line and bottom-line of the income statement. A family owned and managed business is as interested in sustainability and control as it is in rapid growth. MINI-CASE 2 Governance Failure at Enron
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