desirability response bias (SDRB) suggest that this bias can be highly correlated with gender and in some cases fully mediate the effects of gender on ethical decision-making (Chung 2003‚ Bernardi 2008‚ Dalton 2011). Nonetheless‚ within the scope of the accounting profession (where ethical behavior is a necessity)‚ little to no consideration for SDRB is taken in ethics research. For example‚
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“This new law impacted accounting and financial decision making because it required companies to be responsible for their financial decisions; it also regulated the way board members and auditors interact‚ as well as‚ recognizing and regulating the problem of auditors working for companies that they have personal interest in” (Ganly‚ 2011‚ Para. 3). Sarbanes-Oxley affects smaller companies and makes sure the organization is under compliance. Management of such company has the legal duty to maintain
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these problems to become public‚ and accounting scandals like that of Worldcom would make history in the finance and telecommunication areas. While the intent is to make money to benefit a person or a group of people through illegal acts while disguising their illegal origin‚ a whistleblower may be lurking amongst you. This history tells us how fragile the monitoring process of the company’s financial system is. Companies often rely on accountants to safeguard company ethics. Accountants have a
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2001‚ Enron filled for bankruptcy under chapter 11 of the US banking code. This sudden collapse of one of Fortune 500 largest companies shocked the world. Once the world’s largest energy company‚ Enron’s scandal became the largest bankruptcy recognition and was attributed as the biggest audit failure in American history. The impact of this downfall was felt within the company and throughout the business world. As Enron’s stock plunged in value‚ tens of thousands of employees lost their jobs‚ most
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XACC/280 Date Instructor Name Internal Controls Internal controls are an essential asset to any company that wishes to maintain their company’s security and accuracy. These controls help to protect the assets belonging to a company from unforeseen events such as employee theft‚ robbery‚ or any sort of unauthorized use (Weygandt‚ Kimmel‚ & Kieso‚ 2008). They also create the opportunity for accounting records to be more accurate and reliable by limiting the possibility for errors and irregularities
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be in the best interest of the Company. We have taken pride in the fact that we qualify for Government contracts. We should not let anyone else find any fault within our Company. In conducting such a review‚ we would be able to thoroughly examine aspects of not only our control systems but our personnel and practices. Through a full financial status review we will also be able to determine if there is any fraud or abusive actions being enacted against the Company. Occupational fraud is
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Phillip Canamar Accounting Case Analysis LP1 Assignment: Audit Failure 1. Analyze the actions of the auditors in both cases and identify any errors in judgment made by the auditors. The action of the Auditors‚ Audit Committee‚ and top management that worked for Molex Corporation were in error because FASB Concept Statement #2 (materiality defined) appears to apply to this case and should have know the appropriate way to handle the situation that conforms with GAAP and adjust the financials
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Hunter’s article examines how the Sarbanes-Oxley Act (SOX Act) is too stringent and gives too much power over companies to governing bodies‚ i.e. the Public Company Accounting Oversight Board (PCAOB) (Hunter‚ 2007). It discusses how the SOX Act is unfair to domestic and foreign and small and large companies‚ their shareholders‚ and the public. The piece explains how the Act may compel some companies to use unethical actions to conduct business and prevent accruing penalties (Hunter‚ 2007).
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movies? Every big company believes that they can’t fail or in another word “They are too big to fail”. However‚ they did not know how to be enough; all they want just put more and more money in their pocket. Good example from the movies: First Enron‚ they are the big company for oil and gas. But the manager in the movie tried to make more money. They did not care about the situation or account in the company. So the problems become worse when the real account had shown up to the public. What I learned
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Arthur Andersen was one of the ’Big 5 ’ accounting firms‚ the others being PricewaterhouseCoopers (PWC)‚ Deloitte Touche‚ Ernst and Young‚ and KPMG. Throughout the 1980 ’s and 1990 ’s‚ these five companies provided auditing and tax services to most of the west ’s major companies. However‚ in 2002 Arthur Andersen ’s licences to practice as Certified Public Accountants (CPA ’s) in the US were voluntarily surrendered by the company in the wake of criminal charges relating to the Enron scandal. Although
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