¶ … consensus as to whether accounting is more 'bean counting' or more shady dealing, most will agree that accounting is extremely important to the operations of an organization." Address that statement, what is your opinion of accounting with regards to bean counting vs. shady dealing? Also without using a book definition, why do you feel accounting is important to the operations of an organization? Although it is an administrative function and isn't directly responsible for any kind of value creation, an effective accounting department will add substantial value to an organization in a multitude of indirect ways. For example, having accurate records can allow managers to make better operational decisions which can in fact lead to more profitability.
In my experience, accounting would be similar to the "been counting" perception. Most of the companies I have worked for have taken accounting very serious and I wasn't aware of any attempts to try to fudge numbers or be shady in anyway. In my jobs there was an emphasis placed on accounting for everything and keeping accurate records. However, in most cases I wasn't involved in any of the official preparation of the actual reporting of the financial statements. It is reasonable to suspect that if any shady activities were to occur, it would be in this accounting activity and less with the day-to-day stuff.
However, I have heard of some fairly minor accounting violations in experience. For example, one employee was reimbursed for mileage for driving his own vehicle to a training session in a distant location. He admittedly "padded" the miles that he drove so that he would receive more compensation for driving. However, although this could be considered a serious offense, it would not actually change the company's financial statements in any significant manner. I think the worst shady violations would come from within the accounting department and would consist of purposely misrepresenting the company's position to reduce its tax liability or appear more financially attractive to ...
Student 1's post: In my opinion, accounting is viewed more from a bean counting perspective but I feel that could vary depending on the business. In my line of work (Xerox) it is more bean counting as compared to a business like maybe a casino, where there might be more shadiness involved behind the scenes. Accounting is extremely important and vital to an organization in order to know where a company is with regard to their financial obligations against what they are bringing in from a revenue perspective. Without accounting a business would be hard pressed to be able to determine what areas of the business they need to focus on to save money. Accounting could be the determining factor of whether or not a company should stay in business.
I agree. It seems like a large majority of the major corporations that have a large number of different locations mostly take a more bean counter approach to accounting. Companies such as these will have many layers of internal oversight as well as external auditors as well. Companies that deal with a lot of cash and have a limited number of locations would likely be more predisposed to trying to pull off some kind of shady accounting tricks. While I think this would be the most common situation, there are obviously many examples to the contrary. Companies like Enron, Tyco, and Kmart were all large organizations that were guilty of shady accounting.
Student 2's post: My opinion of accounting with regards to bean counting vs. shady dealing is that accounting is more closely associated to bean counting rather than shady dealing. Shady dealings in my opinion can occur in any aspecet of any organization, ghost companies that are created to hide shady dealings, ghost payroll/employees to pay people that are listed as employees on paper…
Although it is an administrative function and isn't directly responsible for any kind of value creation, an effective accounting department will add substantial value to an organization in a multitude of indirect ways. For example, having accurate records can allow managers to make better operational decisions which can in fact lead to more profitability.
The first trial for the two began on September 29th, 2003. The trial was not concluded as one of the jurors had complained of been pressurized to convict the two former executives. The retrial was conducted, and the jury reached its verdict on June 17th, 2005. They were both acquitted for one count and convicted for 22 criminal counts. They were not found guilty of falsifying business documents. Both of
This was designed to limit the total amounts of insider selling for tax purposes. As time went by, Swartz used this program to give all employees loans for any reason. This helped Kozlowski and other executives to receive large loans from this program (that were forgiven in the future). ("Tyco," n.d., pp. 389 -- 402) (Farrell, 2011, pp. 442 -- 446) The Impact of Auditors Price Waterhouse Coopers was the auditor
Tyco International is a worldwide manufacturing company that is involved in production of various products since its inception in the 1960s. The company is currently divided into five main business segments which are Safety Products, ADT Worldwide, Flow Control, Fire Protection Services as well as Electrical and Metal Products. Furthermore, the company recently split its corporate sections into three independent companies i.e. Tyco Healthcare, Tyco International Ltd. And Tyco Electronics
" (Cummins, 2006). The VP for Corporate Governance, Pillmore announced a series of ethical principles, to prevent such scandals. The first principle "calls for strong leaders who see themselves as stewards of the company and mentors for its future leaders." (Cummins, 2006). The second principle is to establish a "web of accountability," where corporate leaders are constantly questioned about ethics-based decisions. (Cummins, 2006). The third principle is to investigate actual
First of all, they should implement a better control of the executives' actions by limiting their rights and access to corporate funds. No major decision regarding future mergers, acquisitions or investments should be taken by a single executive. All significant activities and fund usage should be approved by the Tyco board during general meetings. The number of these meetings should be of at least one or two per week. The
The UETA gives legal recognition to electronic records, electronic signatures, and electronic contracts. The UETA provides that a contract cannot be denied enforceability solely because it is in electronic form, or because an electronic form was used in its formation. If the law requires a written record, an electronic record satisfies the law. Furthermore, an electronic signature satisfies legal requirements for a signature. An electronic record or electronic signature is