The Sarbanes-Oxley Act also is known as the SOX act, is an act passed in 2002 by United States Congress in retaliation to the billion dollar fradulent accouunting practices, scandals, and activities of corporations. It mandates that management creates internal controls and keep accurate reports on the accuracy of controls. Moreover, the SOX act mandates that senior management attests to the legitamacy of financial reports and statements. Likewise, the adequacy of internal control systems must be authenticated and monitored by independent external auditors. Failure to comply with any provisions of the act can result in steep fines and even imprsonment.
As a tax agent, the employer is only responsible for taking the correct tax deductions from the W-4 tax elections and depositing those tax deductions to the right agency. Remember that tax situations can change throughout the year and these tax forms should be modified to reflex those changes. Prospective employees need to have any deduction related questions ready for the payroll representative. The representative will be able to answer questions concerning the different types of benefits offered and how they will affect the net pay. Here are a few examples.
This lawsuit blames WorldCom of unfairly exploiting the telecoms regulations at the expense of its competitors. Detailed Analysis: The WorldCom case has become a kind of typical case of corporate governance failures. The world’s second largest telecommunications company WorldCom after the disclosure of massive accounting irregularities, filed for bankruptcy in the federal court in Manhattan in 2002. It provides a genuine case study in the failure of corporate governance and suggests a number of lessons in how to avoid its repetition. The fraud within WorldCom consisted of a number of so called “topside adjustments” to accounting entries to falsify declining earnings.
Shrieves Casting Company Mini Case I will discuss how organizations analyze financial data to decide whether to add new product lines or test if projects are profitable. Organizations have to analyze several different calculations to ensure the information coincides with the decision to begin projects. Corporations employ consultants that have more knowledge in the industry and help to navigate the risk associated with the different opportunity costs. Management must understand the risk associated with each decision to ensure shareholders receive maximum returns, the corporation is able to function properly, and the departments continue operating in areas that align with the organization. Cash Flow Estimation and Risk Analysis The Shrieves Casting Company engaged with Sidney Johnson to analyze new lines of product mixes and to complete a capital budgeting analysis.
Wall Street, in collusion with Washington by means of campaign financing and political donations, has been deregulating financial markets since the 80s in order to benefit themselves. Profiting from riskier and more corrupt behaviour, the relationship between Wall Street and Washington became cosier in the belief what was good for Wall Street was good for Main Street (Giltin, 2011 p.7, 10, 11). The American public began to exert their feelings of frustration with the occurrence of The Global Financial Crisis (GFC). Pointing the finger largely at Wall Street, Americans blamed the greed and corruption of financial institutions for inciting the crisis. The feelings of distain were only further enhanced when tax payer bailouts saved Wall Street from a problem that was essentially self-created.
(Collins, 2012) It appears there was immense praise from other networks and the media that analysts anticipated stock price growth. This falsehood and these unethical behaviors led to the downfall of Nortel. The company did not live up to the expectations investors projected. Roth put out false financial statements that did not contain proper financial standing of Nortel. (Collins, 2012) Management’s actions drove the stock prices down dramatically and investors lost large amounts of their investments.
Later, Zaheer reframed the concept of LOF, referring it to the additional operating costs of social and economic resources when the firms operate in foreign markets (Zaheer, 1995, p 342-343). Additionally, Eden and Miller (2004) pointed out other costs, including unfamiliarity, relational and discriminatory hazards which persist longer and often put foreign firms in a disadvantageous position as compared to domestic
This paper’s intention is to explain two issues: (1) causes of the sub-prime crisis and (2) the major parties responsible. Through a detailed analysis, excessive deregulation of the financial system, bad lending, excessively accommodative monetary policy, lax regulation and housing bubble are the factors leading to the sub-prime crisis which in turn led into an economy crisis and global financial meltdown. This is due to over-confidence in the financial market and irrational behavior by the borrowers, lenders and the investors driven by monetary greed which aggravated the sub-prime crisis. 2. Introduction In US, owning a home is part of “American Dream”.
Case in point, the recent uncovered unethical sales practice which became a part of the Wells Fargo culture and which resulted in the company compensating customer billions, installing new leadership and the withholding of executive compensations (Egan 2017). In this regard, it is imperative that business schools take the necessary action to instill ethics in students as a mean to eliminate a re-occurrence of the Enron or even the Housing Bubble
“It is unfortunate that Ronnie Chan got tied up in the Enron situation, it is quite unfair to blame independent directors who have to depend on the external and internal auditors who are suppose to be giving independent and capable reports.” (Mark Mobius) The above quote lays the responsibility of the fall of a company on the auditors. The biggest audit fail of Enron Corporation not only led the company towards declaring bankruptcy but also dissolved one of the five big professional services companies, the Arthur Anderson. However, it may not be fair to blame the auditing profession entirely for the fall of a company. In the case of Enron, the chief financial officer himself concealed
This income needs to be reported on an individual’s tax return. A proper 1099 form is sent to the IRS by the payer and the copy of the form to the individual who receives the payment in the form of income. There are different types of 1099 with each type being designated by one or more than one letter like 1099-MISC and 1099-K. each type of 1099 form is used for reporting different varieties of income received by individuals. There are a lot of people who wonder how to file form 1099 and such people can get an answer to this question below: What Needs to be Done with Federal 1099 Form? So, how to file form 1099?
The Sarbanes-Oxley Act of 2002 is a legislative response to a number of corporate scandals that sent shockwaves through the world financial markets. Some of the biggest issues involved Enron, Tyco and WorldCom. The Sarbanes-Oxley Act, commonly referred to as SOX, attempts to strengthen corporate oversight and improve internal corporate control. The main purpose of the Sarbanes-Oxley Act is to protect shareholders from fraudulent representation in corporate financial statements. Investors need to know that the financial information they rely on is truthful, and that an independent third party has verified its accuracy.
The 2008 Financial Crisis received the name "The Great Recession" because it devastated all aspects of not only the American but also the Global economy. The shadow banking tactics employed by Wall Street 's "too big to fail" investment firms, left many American households confused as to why their assets plummeted in value. As with any situation, however, with a large amount of losers comes a large amount of winners. Just as those who bought into an index-fund at the bottom of the Great Depression are now seeing their investments return five times their initial value, families that took out mortgages after the busting of the housing bubble have realized substantial capital gains on their home investment. A personal example of buying into the