Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image. Another pressure presented in this case for Cendant Corporation was that for the top management once again. The top management needed to have their financial information seem profitable, therefore pressured the accountant of the company to falsify and “cook the books” to make the financial statements seem actually “profitable” when it wasn’t what It really was. As said in the previous question, income smoothing was used in this case by Cendant Corporation as an unethical practice to make the investors believe that their shares were all bright
Furthermore, the Oxley act also mandated strict guidelines and reforms to improve the financial sector as well as the disclosures that corporations provide to the securities board in which would help prevent them from committing accounting fraud (Fbi.gov, 2017). This particular act was created, after major companies with public scandals such as Enron Corporation, and WorldCom committed fraud on its investors’. Such act will require legitimate confidence with financial statements as well as crucial penalties for financial crimes committed by companies or
Responsibility for Poor Accounting: Are Accountants Always To Blame? Accounting is the process of “analyzing, recording and summarizing” financial information into useful and reliable financial statements that would serve as an overview of the business’ financial performance to both internal and external users. Accountants are the people who deal with this as a career, that is, to professionally maintain a business’ accounts up-to-date. It’s easier to put the process into words than to execute it. And that’s the reason why it takes a long time for an accountant to acquire the needed experience and to achieve a level of trust and professionalism in the eyes of the business’ management.
Traditionally, pro forma earnings are lampooned as “earnings before the bad stuff”, which are lower than the figure according the GAAP. Companies may present to the public their earnings and results of operations on the basis of methodologies other than GAAP. And this presentation in the earnings release is often referred to as “pro forma” financial information. Many companies were thought to be using pro forma figures not only to exclude one-time charges, but also to strip put recurrent costs and other elements that they claimed concealed their “true” performance. “Pro forma” financial information can serve useful purposes.
In his concluding paragraph he states that in all of his research it can be concluded that the illegal immigrants have a large, positive impact on the United States economy. He also mentions that future immigration policy should recognize the impact that illegal immigrants have on the United States economy, and that deportation would hurt the United States economy
Forensic accounting is a difficult field to work in but it assures financial security and priceless experience while serving the nation. Job Description Forensic accountants analyze and investigate financial reports to look for signs of inconsistencies which indicate fraud. In such cases, forensic accountants will restructure the process and activities related to financial abuse in an organization. These experts will show presentations with supporting legal documents and real company data as proof that fraud actually took place. The court may ask them to testify about their investigation results.
What did the this retail store do or did not do that made a huge impact on keeping their doors open? Annual reports will need to be obtained from JC Penny 's in order to gain an understanding of any profits or losses. This includes looking closely at financial plans and determining what cuts have been made and profits gained that prevented them from closing or filing for bankruptcy? The evaluation of JCPenny 's will begin with looking into financial reports dated back to 2006. Reports gathered from 2006 are important in gathering information before the recession took place and is valuable in order to figure out how much the store was affected by the recession.
The Tax Advantages and Disadvantages of Sarbanes-Oxley The Sarbanes-Oxley Act (SOX) was marked into law in July 2002, with the express motivation behind reestablishing public trust in corporate financial proclamations. Preceding the order of Sox, investors endured huge losses because of corporate lacks brought on by financial related misbehavior. In particular, SOX was proposed to address issues of accounting extortion by endeavoring to enhance both the precision of and quality of corporate disclosures. It likewise expanded the responsibility of organization officials and individuals from the top managerial staff. The demonstration was an immediate result of people in general revulsion with a progression of financial scandals that lead to
As a discipline, it encompasses financial expertise, fraud knowledge, and a strong understanding of business reality and the working of the legal system. The process includes: o Reviewing the factual situation. o Providing assistance in obtaining documentation necessary to support or refute a claim. o Reviewing the relevant documentation to form an initial assessment of the case and identify areas of loss. o Providing assistance with examination for discovery, including the formulation of questions to be asked regarding the financial evidence.
The bank was chosen worthy for the research due to the wide branch network and high excess in I.T practices. The bank performance is weighted on its incorporation of information technology into the system. The study is concerned with how the employees and the customers are reacting to this new innovation, also consider if investment made in information technology was worth the end result achieved after the integration of information technology in the banking industry in Somalia, a country with more than two Decades without banking