Unit 1 Milestone 22

Waste Management Scandal (1998), is one of the top 10 accounting scandals of all times. The Securities and Exchange Commission (SEC) found the company's owner and former CEO, Dean L Buntrock, guilty, along with several other top executives, and Waste Management's auditors, Arthur Andersen. What is meant by public interest of an auditor? Do we find the auditors — Arthur Anderson, serving their duty?

As the auditor for the financial statements for the year ended 2020 for South32 Limited, are there regulation, restrictions or disclosure requirements etc. that has implications for your firm if you provide the requested advice. If so, please discuss the requirement and how you would resolve it.

The Securities and Exchange Commission in the U.S.A. charged Ernst & Young LLP (EY) for cheating by its audit professionals and fined the organization a $100 million penalty. Identify the ethical aspects of this episode, analyze the likely factors that led to this occurrence, and examine the remedial measures that the organization needs to take to prevent this from happening again.

what are ways the external auditor's responsibilities regarding a public company's system of internal controls have changed since SAS 78 became effective in the late 1990s. Were these changes necessary? Do you believe the changes have been effective at reducing risk for the company and the users of the financial statements?  Explain your rationale.

The Sarbanes-Oxley Act includes additional communication requirements for auditors of public companies.   true or false?

READ THE ARTICLE BELOW AND ANSWER THE QUESTIONS THAT FOLLOW:Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA EthicsExams and Misleading InvestigationLargest Penalty Ever Imposed by SEC Against an Audit FirmWashington D.C., June 28, 2022The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheatingby its audit professionals on exams required to obtain and maintain Certified Public Accountant(CPA) licenses, and for withholding evidence of this misconduct from the SEC’s EnforcementDivision during the Division’s investigation of the matter. EY admits the facts underlying theSEC’s charges and agrees to pay a $100 million penalty and undertake extensive remedialmeasures to fix the firm’s ethical issues.“This action involves breaches of trust by gatekeepers within the gatekeeper entrusted to auditmany of our Nation’s public companies. It’s simply outrageous that the very professionalsresponsible for catching cheating by clients cheated…

READ THE ARTICLE BELOW AND ANSWER THE QUESTIONS THAT FOLLOW:Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA EthicsExams and Misleading InvestigationLargest Penalty Ever Imposed by SEC Against an Audit FirmWashington D.C., June 28, 2022The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheatingby its audit professionals on exams required to obtain and maintain Certified Public Accountant(CPA) licenses, and for withholding evidence of this misconduct from the SEC’s EnforcementDivision during the Division’s investigation of the matter. EY admits the facts underlying theSEC’s charges and agrees to pay a $100 million penalty and undertake extensive remedialmeasures to fix the firm’s ethical issues.“This action involves breaches of trust by gatekeepers within the gatekeeper entrusted to auditmany of our Nation’s public companies. It’s simply outrageous that the very professionalsresponsible for catching cheating by clients cheated…

Chapter 9 What is the purpose of The Sarbanes-Oxley Act of 2002? Describe the Risk Manager’s role in educating the Board.

Assume that you are a consultant advising the Chair of a Remuneration Committee - who oversees CEO and Executive remuneration of a listed company in Australia. As requested by the company’s shareholders and Board of Directors, you have been tasked to review the CEO compensation structure to fit changes in the current business environment.1. In response to the Covid-19 pandemic and uncertainties in business climate, what short-term and long-term considerations should the company observe in adjusting the CEO’s pay? Provide a rationale for theseconsiderations and support your discussions with relevant examples.

You have been asked by the board of directors of a listed bank to update them on the emerging corporate governance issues that should be of interest to them.  Research and prepare a report for the board on the corporate governance issues that should be of current concern to thedirectors of this company.

The recent Wells Fargo scandal in which bank employees created more than three million fake customer accounts as a result of pressure from their managers to meet sales quotas still has the banking community and consumers up in arms regarding the ethics of fraudulent banking practices, ongoing credit issues, and customer privacy. Using an internet search engine, research what happened at Wells Fargo, what fallout it caused for consumers as well as bank employees, and what the Fed did to intervene. Summarize your findings, and provide recommendations on what banking executives and employees could have done differently.

What motivated the establishment of the Sarbanes-Oxley Act of 2002? What responsibilities are assigned to management under this law? How does this law contribute to the control of financial health in companies?

Which of the following are the characteristics of the Pension Benefit Guaranty Corporation (PBGC)? Check all that apply. Has no regulatory powers May act as the pension fund manager Affected by economic conditions Has vast regulatory powers

In the Lehman Brothers Fruad Case, what are the Impact or the effects of the fraud on the institution and give recommendations or remidal measures that the institutions could take to prevent this fraud.

Discuss the auditor’s responsibility to communicate fraud to the audit committee. When is the auditor required to communicate possible fraud to parties other than the audit committee and management?

Your Group has formed a tax advisory firm. One of your clients in considering investing in Barbados. The company has requested general tax advice in respect of the VAT regime in Barbados. Your Group is required to provide this advice. Additionally, the company has requested the high-level of all other applicable taxes in Barbados including all the matters that the investor needs to be aware of. Making the necessary assumption as appropriate.

The AICPA can bar or suspend from practice any accountant deemed to have engaged in "unethical or improper professional conduct." Select one: True False

Why is it so important to compare a firm's financial statements with those of previous years, those of competitors, and the average of all firms in the industry in which the firm operates?

Describe the role of the SEC in society and discuss its relationshipwith and influence on the practice of auditing.

As a risk advisory consultant, you are asked to evaluate and recommend improvements for the employee onboarding process for Swiftly Tech. During your evaluation you discover that Swiftly Tech's employee data was part of a data breach from a third-party background check provider. What action do you recommend that Swiftly Tech take?   Swiftly Tech should require employees to acquire and provide their own background check data.   Swiftly Tech should forgo background checks to avoid sharing confidential employee data with other companies.   Swiftly Tech should require background check providers to have their own internal controls to ensure confidentiality and security of data.   All of these answer choices are correct.

For how long does the Sarbanes–Oxley Act require auditors ofpublic companies to retain audit documentation?

6) If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA? A) The stock trading at the highest dollar price per share B) The stock having the greatest amount of debt in its capital structure C) The stock having the greatest amount of equity in its capital structure D) The stock having the lowest volatility Please provide accurate answer with justification.

The CEO of a fictional pharmaceutical marketing company in India has positioned the company as the ethical alternative to its competitors, going as far as to change the company's tagline from "Health for everyone" to "Health with integrity."   The company has a public ethical policy and has been transparent with its operations. So, when he learns that the firm's star salesperson who earned millions of dollars for the company, falsified the numbers on a recent report, the CEO must decide whether to fire him. Sales have been very difficult with the Covid-19 pandemic and people afraid to venture out in public and spend money. The salesman had created a sales matrix that had allowed sales to remain at peak levels during the difficult times however, sales was starting to increase as Covid-19 restrictions were being gradually increased. In fact, the company had gone public and applauded the salesman for his effort and was announcing him as Vice President for Sales and Marketing.   c. What…

The CEO of a fictional pharmaceutical marketing company in India has positioned the company as the ethical alternative to its competitors, going as far as to change the company's tagline from "Health for everyone" to "Health with integrity."   The company has a public ethical policy and has been transparent with its operations. So, when he learns that the firm's star salesperson who earned millions of dollars for the company, falsified the numbers on a recent report, the CEO must decide whether to fire him. Sales have been very difficult with the Covid-19 pandemic and people afraid to venture out in public and spend money. The salesman had created a sales matrix that had allowed sales to remain at peak levels during the difficult times however, sales was starting to increase as Covid-19 restrictions were being gradually increased. In fact, the company had gone public and applauded the salesman for his effort and was announcing him as Vice President for Sales and Marketing.   b. If the…

Discuss the conceptual framework for financial reporting. What are its main objectives, qualitative characteristics, and elements of financial statements? How does the conceptual framework guide the development of accounting standards?

Financial performance analysis includes analysis and interpretation of financial statements in such a way that it undertakes full diagnosis of the capital budgeting, income and expenditure, profitability and financial soundness of the business.  Please explain the importance of financial evaluation in internal enterprise situational analysis

Discuss the benefits and inconveniences by including management and staff in an organization's external audit.