of the preparers of financial statements. To demonstrate the manipulative behavior of preparers of financial statement, the researchers used the accounting regulation in the USA and Spanish economy. The research demonstrated the weaknesses of U.S. standards in relation with a preparer lobby. Major corporations challenge regulators by insistent their interests. Consequently, the regulation attempts to mediate and compromising between the regulator and the preparer of financial statements (p. 61).
Many studies demonstrate the differences in financial reporting between the International Financial Reporting Standards (IFRS) and U.S. Standards. Nagle, Wasieleski, and Rau (2012) in their research focused on the code of ethics and moral duties of the company top management. The researchers studied the financial scandals and the recent financial crisis to demonstrate the gap between the market processes and accounting standards. The IFRS and U.S. GAAP differ in a contrary nature of accounting standards
Assignment 2 - Accounting Quality Presented by: Niambi Walker Acc573-Financial Reporting and Analysis To: Professor Brandy Havens Strayer University August 16th 2015 Assess the roles of the Board of Directors and Chief Executive Officer of a public company for establishing an ethical environment that generates quality accounting and reliable financial reporting for use by shareholders and investors. Provide support for your assessment A code of ethics and ethical values are key elements
The ethics increase the responsibility and integrity of accounting professionals, and public trust. The ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework, such as off-balance sheet transactions, misrepresentation of financial statements, inaccurate disclosure, manipulations with earnings, etc. The confronted accounting profession and concern for ethics in businesses
Ethical and Legal Obligations Ethical and legal obligations apply to all members of society. As one in society, the obligation to act in an ethical, law abiding manner on a daily basis is vital to the integrity of daily life. Many professions have their own code of ethics. Financial reporting is not exempt from such ethical and legal standards. One’s lively hood depends on decisions made in the business world. Business transactions are done daily and can impact one’s economic stability.
Research Proposal The Quality of financial Reporting after the passage of Sarbanes-Oxley Act Dr. Hassan Ahmed Assistant Professor at Cameron University Abstract The complexity of business environment necessitates a set of required disclosures in a timely fashion. The full disclosure principle under U.S. GAAP is based on a vague definition that cannot be clearly implemented. The cost of disclosures can be significantly large and can have a negative impact on companies’ future earnings
Conduct is obligatory for anyone working with or on Kerry’s behalf, without exception, because ethical everyday actions are the basis of trustworthy, productive relationships with each other, the customers and the suppliers. Live the Values Kerry’s values include fulfilling the responsibilities to the communities, commitments to social and environmental sustainability, the highest standards of business and ethical
firms could use SER disclosures to legitimise activities to lenders and shareholders (Haniffa and Cooke 2005). SERs can be used by managers to frame how Financial stake holders interpret financial information, specifically to manipulate stakeholders reaction to disappointing financial reports, by changing the focus and constructing a "disconfirmatory effect on the financial figures" (Neu et al., 1998, p.270). Qualitative positive disclosures with quantitative negative disclosures (Gibbins et al., 1990)
Fraudulent financial reporting has gained substantial attention from the public after the scandals of many high profile companies in the 21st century. Periodic cases of financial statement fraud raise concerns about the credibility of financial reports and are as a result of problem in the capital markets, a dropping of shareholder value, and, the bankruptcy of the company. Thus, to respond to the public pressure over acts of corporate offense, the Sarbanes-Oxley Act (SOX) was enacted in 2002. SOX
auditors’ ethical behavior and independence. The AICPA Code of Professional Conduct contains Section 101 – Independence that describes requirements for the auditor during engagements. The regulators establish principles and standards of the accounting profession, but the number of financial scandals continue increases due to the audit failure. The auditor independence is one of the important elements of quality audit. The independence safeguards auditor/client relationships, ensures fair disclosure, integrity