Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
United States. I feel that auditors should be held to the highest standards and any implication of illegal behavior should be punishable under law.
Supreme Court aside, Congress has done much within Sarbanes-Oxley to address the legal ramifications concerning auditor misrepresentation. The principles regarding the elimination of conflict of interest remove one of the most significant motivations for the commission of fraud. I feel that overall, the legal framework for prosecution is strong. I do, however, feel that the industry should hold itself to a higher standard. The PCAOB can make life difficult for auditing firms, and this acts as a means of control, but surely an auditor willing to commit fraud will not be discouraged. Even the threat of being removed from the profession may not suffice.
There needs, in my opinion, to be a comprehensive degree of legal recourse....
This should include but not be limited to civil suits, firing, removal from the profession, and criminal prosecution. Auditor misrepresentation has substantial impacts on our entire financial system, as demonstrated by the aftermath of Enron and other similar scandals. It is essential, then, that auditors understand that misrepresentation is a criminal activity that will result in criminal prosecution, jail time and ultimately their removal from the profession and the elimination of all of their assets. Only the threat of total financial and career ruin can serve as a sufficiently significant deterrent and I believe that is the direction we should go.
Works Cited:
Hasnas, J. (2005). The significant meaninglessness of Arthur Andersen v. United States. Cato Supreme Court Review. Retrieved April 29, 2010 from http://faculty.msb.edu/hasnasj/GTWebSite/AndersenDraft.pdf
Works Cited:
Hasnas, J. (2005). The significant meaninglessness of Arthur Andersen v. United States. Cato Supreme Court Review. Retrieved April 29, 2010 from http://faculty.msb.edu/hasnasj/GTWebSite/AndersenDraft.pdf
An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth. In addition to openings resulting from growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation." Following a slew of recent accounting scandals (does Enron ring a bell?), federal legislation was passed to increase penalties,
In addition, there is no requirement, per se, for a master's degree; Within the total hour requirement, 36 semester hours of accounting and/or tax courses above the principles level and 39 semester hours of general business courses, including six semester hours in business law (Uniform CPA Exam). The Uniform CPA Examination consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and
deceitful profession, certified public accountants would most certainly not be the first to come to mind. That is because CPAs are known and respected for their honesty. The profession goes out of its way to project that image, and there is a certain amount of truth to it. However, not all CPAs are squeaky clean and respected for their honesty. Some are quite dishonest and are putting a black
American Institute of Certified Public Accountants (AICPA) pioneered and mulled over a set of standards for auditing professionals. These eventually became recognized as the 10 generally accepted auditing standards. The 10 generally accepted auditing standards fall under three main categories: General standards -- Audits must be executed by a qualified and adept auditor. All matters relating to the project should be addressed with autonomy in mental attitude. Professional care is to be
Another challenge facing the industry today is the important legal issues that surround the Sarbanes-Oxley Act (Koehn & Del Vecchio, 2004). One of these is the fact that the process of due diligence practiced by many companies is now taking much longer (Koehn & Del Vecchio, 2004). There is a higher degree of caution than was previously utilized and because of this many companies are discovering information that would have
This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing these services to clients whose financial statements they also prepare." (U.S. Department of Labor, Bureau of Labor Statistics, 2009) 1. Public Accounting The work entitled: "The Reality of the CPA's Role" states that modern CPAs work "behind the scenes as trusted advisors in