Study "Accounting / Auditing" Essays 1-55

SUMMARY:  The practice of financial accounting (or accountancy) entails thoroughly and systematically documenting the monetary transactions of a person, organization, corporation, or business.

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A financial expert who practices accounting on a professional level and receives payment for his/her services is called an "accounttant" (or "bookkeeper").  Proper accounting generally requires such an expert to compile, analyze, audit, summarize, and report financial data to government bodies, regulators, oversight committees, and/or tax collection agencies (such as the IRS, or Internal Revenue Service).

The financial statements that accountants produce are legally-binding records that aggregate and summarize a major corporation's financial position, cash flow, and operations during what is usually a regularly scheduled time period (quarterly, bi-yearly, or yearly).  These documents succinctly summarize the hundreds—if not thousands—of financial transactions that the given entity completed during the time period in question.

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Forensic Accounting in Practice Research Paper

… Forensic accountant must possess accounting skills, auditing skills, business skills, know investigative techniques, and have a clear understanding of human behavior. Each skill is applied to business operations and is used in the courtroom environment. These skills are vital in… [read more]

Locate Plus' Financial Statement Fraud Essay

… Disclosure of this information during the audit stage would have made things easier; however there is no quick fix for the issues that are brought about. Now the validity of the company is in question with little data to support the existence of this business at a specific time period. This could also bring about other legal issues regarding fees and specification that were not met dealing with the actual date that the business was started and legally doing business in its state.

The issues were clear and it became an issue as to how these problems could in fact be rectified. The Omni Revenue was bogus, and there was no information available to support the validity of Omni Data's existence. Again, the fact that the Omni contract was signed months before the business had been incorporated also give way to issues with if the business itself was operating legally when it acquired the Omni Data account. The inability to find a verifiable president of Omni Data too leads for a need to further investigate the validity of any transactions that took place under this client name. The Locate Plus' Audit Committee Chairman had a conflict of interest because he had pledged assets to secure a loan to Latorella; in addition Latorella had been buying off Locate Plus' Audit Committee Chairman through extending him high interest loans (at 30% to 40%). Lastly, a revolving line of credit with Locate Plus, was not Identified as a related party, and was owned and controlled by Fields and Latorella.

During the 2005-year-end audit, L&H failed to competently evaluate the reliability of the audit evidence obtained by the confirmation process. First, L&H initially sent its confirmation to the President of Omni Data -- a person alleged by the informant to be a "stooge" of Latorella -- at the address Locate Plus had provided. Moreover, the confirmation was initially returned to L&H by the U.S. Postal Service as "undeliverable." Ultimately, a confirmation was received, signed by a person purporting to be President of Omni Data. During the 2006-year-end audit, the confirmation sent to the Omni Data address that Locate Plus had provided was again returned as "undeliverable" (Securities Exchange Act of 1913). Here is a conclusive list of the areas of violation. Failure to adequately test the Omni Data Revenue and Receivables, Failure to adequately plan the 2005 and 2006-Year-End Audits, Failure to Competently Evaluate Evidence Obtained by the Confirmation Process, Failure to Assess the Risk of Material Misstatement Due to the Omni Data Transaction, Failure to Use Due Professional Care and Exercise Skepticism, and Failure to Issue Accurate Audit… [read more]

Business and Leadership Peter Northouse Term Paper

… We all worked very hard during tax seasons, but everybody knows we could make up the time once the tax season is over. Hence, my firm has very low turn-over rate unlike the big accounting firms, high turn-over rate has always been a big problem. The clients want to see and work with familiar faces, and we want a steady workforce. I believe that leaders must work to change the conditions in the world that they disagree with.

My next career move will be in five years when my children are in college. There are two possibilities, one is go back to China to teach what I have learned here in American. As the Chinese people (in China) are modernizing everyday they are anxious for more education and are desperate for expertise and experience from the West. Or my family has an education foundation in Hong Kong where we gather money and help to build or to improve the schools in the rural areas in China that I may go to work for. I can utilize my expertise to better manage the foundation, and also use my social and family connections to expand the functions of the foundations, such as teacher's training program or work to improve the medical facilities in the rural areas in China.


Bolman, L. & Deal, T. (2003).Reframing Organizations: Artistry, Choice, and Leadership. Boston: Jossey-Bass.

Northouse, P. (2003). Leadership: Theory and Practice. Los Angeles: Sage. [read more]

Conservatism in Accounting Valuation Research Paper

… Conservatism in Accounting Valuation

Accounting is used to determine the financial health of a business or individual. As such, it is carefully regulated and those who practice it for compensation are required to have education and certification. There are various… [read more]

Accounting Careers Term Paper

… Public Accounting, Corporate Accounting and Governmental Accounting Careers

Career options that are available to entry-level accounting graduates include those of public accounting, corporate accounting and governmental accounting. Each of these vocational options are divided into more specialized areas of practice.… [read more]

Accounting in Crisis Term Paper

… Accounting in Crisis

Between December 2001 and July 2002, four major U.S. corporations -- Enron, Global Crossing, Adelphia and WorldCom filed for bankruptcy, constituting the most serious outbreak of corporate bankruptcies in U.S. history. These companies had hidden their true financial health from creditors and shareholders until an inability to meet financial commitments forced them to restate earnings that revealed massive losses, ultimately leading to a financial meltdown. Since most of the financial irregularities were committed by the management of the companies with the tacit or even active collusion of accountants and auditors, the prestige and public image of the accounting and profession plummeted to an all-time low. Egged on by government legislation such as the Sarbanes-Oakley Act of 2002 and stung by its own falling reputation, the auditing and accounting profession was forced to adapt to the changing environment. In this paper, I shall review the conditions which caused the role of accounting and auditing profession to change and what major changes occurred as a result of the accounting scandals.

Conditions that Caused the Changes

Even before the highly publicized financial scandals in the early 2000s, the accounting profession had seen a significant fall in its attractiveness among students, which was reflected in a 25% drop in award of accounting degrees in just 4 years from 1996 to 2001 in the United States (Inman qtd. By Colson, 2002, p. 21). Accounting education was slow to respond to the rapidly changing business environment and was perceived to be overly narrow in scope. As a result, most recruiting firms started to prefer hiring MBAs and professionals with general degrees for positions previously reserved for professional accountants. Even as the educators and accounting organizations were struggling to make the education of accountants and auditors more broad based and rigorous, the profession was hit by the double whammy of a downturn in the U.S. economy (exacerbated by the 9/11 terror attacks) and the high profile business scandals at Enron, WorldCom, and Global Crossing. Since almost all of the scandals involved filing of inaccurate and misleading financial statements prepared with the collusion of accounting firms and auditors, it was only natural that the prestige… [read more]

State of Accounting Convergence Among Large Public Companies Research Proposal

… Accounting Convergence

The State of Accounting Convergence Among Large Public Companies

What are the reasons driving the state of accounting convergence in large public companies? It is believed that many companies are avoiding convergence because of cost considerations -- for example having to produce multiple sets of financial statements.

What are the motivations, weighted by importance, for large companies to reject the accounting standards convergence promoted by the IASB, FASB and SEC?

Overview/Description of the Problem

The IASB, FASB and SEC are promoting accounting convergence between national accounting standards and international accounting standards. This convergence is occurring in a number of countries, including the United States, European nations (Larson & Street, 2004) and China (Qu & Zhang, n.d.). The convergence process has met with resistance by corporations for a number of reasons. In order to better understand how convergence can be executed globally, the objections of publicly-traded corporations need to be better understood. At present, the current reasons for resistance to convergence on the part of large public companies are not well understood. This paper will investigate some of the objections in order to shed light on the nature of the resistance to accounting convergence.


The first step to addressing the research question will be to conduct a survey of the literature on accounting convergence. The literature will include official explanations of what convergence is and why it is being implemented (AICPA, 2011 & 2010). This will be the basis for the survey component of the study. The survey component will be conducted with members of large public company accounting departments, using the Delphi methodology of structured forecasting. The Delphi method is preferred because the two-round interview system is believed to deliver better responses than individual unstructured interviews. The objective is to uncover systemic issues with accounting convergence, rather than firm-specific ones. It… [read more]

Accounting the Most Effective Means of Achieving Essay

… ¶ … Accounting the Most Effective Means of Achieving Accountability in Organizations

The term "accountability" can best be defined by Roberts and Scapens (1985) in the following manner: "Accountability in its broadest sense simply refers to the giving and demanding… [read more]

Ethics Ensuring Accounting Ethics Through Regulation Term Paper

… Ethics

Ensuring Accounting Ethics through Regulation

There is always the possibility for greed to reign supreme within the context of American capitalism. It is an unfortunate part of the free market system. Yet this immense greed which has cost shareholders dearly in recent scandals can be curbed with proper ethical regulations of corporate accounting practices. Through ethical accounting, the shareholders can rest easy knowing that their money is being handled with a sense of ethical responsibility.

In the midst of so many recent financial scandals and the money lost by the average consumers, it is clear that a tightening of the ropes within accounting practices was needed. Therefore, California recently answered this demand for a stricter enforcement of ethical accounting practices. According to a recent article from Central Valley Business Times, "accounting firms in California will be required to undergo peer review, Certified Public Accountants will take additional continuing education in ethic and consumers will be able to watch live webcasts of California Board of Accountancy meetings," (Central Valley Business Times 2009). This ensures a public responsibility in terms of the account practices of corporate businesses. Peer reviews helps ensure a strict regulation of accounting practices in order to keep the California businesses acting ethically in terms of their accounting practices ad responsibilities to their shareholders. Webcasts keep the public informed and keep the proceedings open. This then ensures that the company in question will be thoroughly providing ethical accounting practices in fear of publicly ruining their reputation with their consumers and shareholders.

"Under the peer review law, all California firms providing accounting auditing services will be required to undergo a periodic peer review," (Central Valley Business Times 2009). The article also describes how the bill forces California CPAs to continually take new courses, therefore providing them with the latest in ethical accounting practices and policies. This then ensures a more regulated and… [read more]

External Auditing Essay

… External Auditing

The role of external auditing on corporate governance corporations has increased dramatically over the past ten years. At the outset of the 21st century, auditing was still a somewhat minor consideration, something that was required but did not… [read more]

Accountants Responsibility Term Paper

… e. By distorting material information for selfish gains. Such scenarios call for the auditor or accountant to serve the interests of all the parties involved. By detecting irregularities, the auditor/accountant would have satisfied his responsibility to the client to ensure competence. By reporting the fraud, the auditor/accountant would have satisfied his responsibility to all third parties who intend to rely on the financial information as presented.


Bruner, P.L. & Haley, T.L. (Eds.). (2007). Managing and Litigating the Complex Surety Case (2nd ed.). New York, NY: ABA Publishing.

Duska, R. Duska, B.S., & Ragatz, J.A. (2011). Accounting Ethics (2nd ed.). Hoboken, NJ: John Wiley and Sons.

Newton, G.W. (2009). Bankruptcy and Insolvency Accounting: Practice and Procedure (7th ed.). Hoboken, NJ: John Wiley & Sons.

Perkins, S.S. (2004). CPA Duties of Confidentiality. Retrieved from

Rosenthal, J. (2010). The Accountant-Client Privilege: Does it Exist? Retrieved from

State Journal-Register. (2013). Dixon Sues Audit Firm for Failing to Detect Fraud. Retrieved from

SEC. (2014). SEC Charges Five Executives and Finance Professionals behind Fraudulent Bond Offering by International Law Firm. Retrieved from

SEC. (2012). SEC Charges China Affiliates of Big Four Accounting Firms with Violating U.S. Securities Laws in Refusing to Produce Documents. Retrieved from [read more]

Texas Uniform CPA Exam Term Paper

… ¶ … Texas Uniform CPA Exam

While many people might know what a CPA is and what it stands for (Certified Public Accountant), this paper looks closely at the nuances of becoming a CPA and how those nuances pertain to… [read more]

Internal Auditing on Environmental Performance Can Enhance Organization's Value Research Proposal

… Life Cycle Analysis and Environmental Auditing

Life Cycle Analysis in Environmental Auditing and Organizational Value

The environmental impact audit is required in certain industries. However, it is becoming standard practices in industries where it is not required as well. The… [read more]

Certified Public Accountants (Cpas) Are Found Term Paper

… Certified Public Accountants (CPAs) are found in many walks of life. They are the well-paid and often highly publicized (albeit sometimes for the wrong reasons) Chief Financial Officers (CFOs) of major corporations and advisors to smaller neighborhood businesses (, 2004).… [read more]

CPA Profession the Accounting Term Paper

… Stricter auditing and accounting rules in the Act have created greater employment opportunities for CPAs and accounting firms. For example, previously only large publicly traded companies were required to comply with strict auditing and accounting standards. After Sarbanes-Oxley, even smaller private companies, especially those that deal regularly with banks and insurance companies, would be required to comply with the new rules.

Restoring Their Image

The CPA professionals and accounting organizations such as the AICPA have rallied effectively to counter the impression that the accounting profession was solely responsible for the business debacles. They have also taken effective steps to improve accounting standards and bolster the image of CPAs in the public and market players including the investors. The effectiveness of the efforts is reflected in a Princeton, N.J.-based Gallup poll conducted in December 2003 indicated that "the public image of the accounting profession has jumped more than any other during the year [2003]" (Quoted by Telberg)

Focus on Ethical Issue

The business scandals and their aftermath have focused the attention of politicians, corporate managers, as well as CPAs and their organizations about the promotion of an ethical business environment. The importance of ethics in accounting education, CPA examination and the licensing process is now widely recognized. Changes have been proposed in the CPA exams by increasing the emphasis on ethics and requiring candidates that have passed the CPA Exam to take a separate ethics exam.

Revival of the Auditing Function

In the 1990s, the accounting profession had de-emphasized the audit function in favor of accounting services to a large extent. This trend has reversed in the changed regulatory environment as more people than ever before now expect CPAs to detect and report fraud while reviewing financial statements. Although performing the role of the industry's watchdogs is a challenging task, the CPAs and their professional associations seem to be aware of the requirements and are taking the necessary steps for upgrading of the accountants' auditing skills.


After a prolonged slump in the 1980s and 90s, the accounting profession is poised for a strong comeback in the changed regulatory environment that followed the disastrous business scandals in 2001. Stricter auditing and accounting rules in the Sarbanes-Oxley Act and the high expectations of the corporate stakeholders about fraud detection have forced the CPAs to make the required adjustments in the educational model, examination and training of accountants. The changed circumstance has, on balance, changed the accounting profession for the better -- placing greater responsibility on the shoulders of CPAs but also creating more job and growth opportunities for the skilled professionals.

Works Cited

Colson, Robert H. "CPA Journal Education Forum Anticipates Future." The CPA Journal. 72: 8. (2002): 20+.

Telberg, Rick. "Happy New Year! Yes, It Really Could Be." At Large Column. December 29, 2003 The AICPA Website. February 20, 2004

This is reflected in the popularity of the MBA degree, both among the students and the recruiting firms survey by Albrecht and Sack (2000) revealed that nearly 100% of accounting… [read more]

SOX 404 Term Paper

… Sarbanes-Oxley Act came at the wake of a lot of scandals and apprehension and there was a lot of media pressure in its enactment that was caused by the collapse of Enron. This act provides stiff punishments for those at… [read more]

Sarbanes-Oxley Research Proposal Abstract Term Paper

… Sarbanes-Oxley Research Proposal
The intent of this research proposal is to evaluate, quantify and predict
the implications of the extent to which the 2002 Sarbanes Oxley Act has had
to date and will have in the future regarding the… [read more]

Professional Exams Term Paper

… Professional Exams

Today's careers are very different from careers of the past. Many professional career require the candidate to take and pass a standardized test before a diploma, certification or licensure is obtained. These standardized exams are rigorous exams that… [read more]

Developments in U.S. Auditing Standards and IFRS Research Paper

… While ASB led the redrafting efforts to clarify the standards, it also incorporated the standards with the ISAs, from the IAASB (Huault & Richard, 2012). Although the objective of redrafting the standards was clarity and unity and not to create extra requirements, auditors must adjust their practices as required by this project.


A shift to the clarified auditing standards has provided to be an inevitable move for at least all organizations worldwide. As organizations embrace this significant move, more will be pushed to embrace the same move for compatibility. Therefore, auditors must be ready to contend with the far-reaching consequences of such crucial regulatory change is likely to have on organizations. Auditors need to be proactive concerning the convergence of IFRS. They must continually monitor the current developments in the field, staying abreast as this international topic is subject to develop globally.


Huault, I., & Richard, C. (2012). Finance: The discrete regulator: how finance shapes the world. Basingstoke: Palgrave Macmillan.

Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2011). Financial accounting: Tools for business decision making. Hoboken, N.J: John Wiley.

Narayan, F.B. (2012). Diagnostic study of accounting and auditing practices in the Marshall Islands. Manila: ADB.

Tapscott, D., Eccles, R.G., & Krzus, M.P. (2013). One report: Integrated reporting for a sustainable strategy. Hoboken, N.J: Wiley. [read more]

Auditing in ERP System Environments Research Paper

… This can significantly enhance the possibilities of success in attaining the future audits (Kuhn, 2010). The article supports the use of low-cost resolutions to achieve an initial automated audit experience like introductory CAATS facilitating data sorting, extraction and analysis procedures. Such programs demand minimal training, provide detailed logs for auditing as paperwork documentation and enables the creation of specified-auditor reports that could be applied to the future and current data sets. Initially, these tools must be utilized to replace manual auditing practices as these areas generate substantial benefits.

In this context, the article illustrates that the programs can be configured to tackle tasks like choosing statistical samples, footing ledgers, generating suspicious transactions, and generating confirmations. Such tools can test the record included in files, which is a marked enhancement over the historical stamping technique found in traditional manual audit.

The Future Audit

As mentioned earlier, basic CAATS have the capability to improve audit efficacy and effectiveness. However, the article shows that they do not function all the time. It fails to construct a continuous auditing realm whereby exceptions might be identified as they occur. Alternatively, the article argues that CAATS do not operate in real time data streams and hence unable to address suspicious events like potential irregularities or fraud in an optimized trend. It demonstrates that based on today's business technology advances, the progressive emphasis on the backward auditing is an outdated philosophy. Therefore, businesses that successfully experiment with CAATS must be given utmost consideration to advanced programs containing functionalities that resemble future audits. As such, they must be provided with high assurance levels. Recently emerging resolutions better satisfies this version (Kuhn, 2010).

The programs in the article are capable of continuously capturing outliers and exceptions in data sets in disparate frameworks, alert mechanisms to appropriate personnel, provide information and confront problems like errors, misuse of resources and fraud in real-time. Such programs could help in optimizing the function of auditing by analyzing all financial transactions taking place. Therefore, such a proactive approach will increase effectiveness and efficiency in discovering opportunities and problems for business improvement. However, before advancing into this elaborative realm, additional considerations pertaining to business operations will be warranted (Kuhn, 2010).

Auditing field has overseen enormous strides in the past years but it has failed to keep pace with the actual time economy. Some auditing techniques and approaches, which were valuable preciously are now outdated. Moreover, the evolution in auditing has arrived at a crucial juncture whereby auditors either lead in adopting or promoting the future audit or proceed to conform to the traditional paradigm. In future, auditing approaches will demand standard setters, regulators, and auditors to make significant adjustments.


Kuhn, J. (2010). Continuous Auditing in ERP System Environments: The Current State and Future Directions. Journal Of Information Systems American Accounting… [read more]

Audit Planning Research Paper

… c. Trace amounts from trade receivable ledger to original checks received and sales invoices to clarify accuracy of amounts, prenumbering of invoices, and customer information.

d. Trace debit side of cash receipts journal to cash and accounts receivable control account.

e. Trace credit side of transactions to sales documentation.

f. Verify that sales invoices are prenumbered, has correct customer information, items purchased, and amounts compared to monthly statements mailed to customers.

g. Ensure that all goods and services have been billed with correct amounts, including charges for goods and services, shipping and contract terms.

h. Identify shipments as being before or after accounting period cut off by means of shipment documents and shipping log.

i. Identify payments as being before or after accounting period cut off by means of checks received, monthly statements to customers.

j. Analyze customer dispute logs for disputes, inquiries, and whether they were resolved.

k. Monitor for prenumbered customer complaints regarding improper billing on statements or improper invoicing.

l. Check credit memos for authorization by individuals independent of accounts receivable function.

m. Account for prenumbered credit memos and prenumbered receiving documents.

n. Compare credit memos with sales documents.

o. Look for unresolved and unmatched items by individual independent of the sales function.

p. Look for reconciliation of accounts receivable ledger by individual independent of accounts receivable function.

q. Look for reconciliation between accounts receivable ledger and accounts receivable control account.

2. Accounts Receivable-Officers

a. Trace amounts from accounts receivable-officer control account to accounts receivable-officer ledger.

3. Inventory

a. Trace amounts in inventory control account to purchase orders, sales receipts, credit memos, and inventory method.

4. Accumulated Depreciation

a. Trace amounts in accumulated depreciation control account through depreciation methods for accuracy.

b. Trace debit side of accumulation depreciation to depreciation expense.

5. Intangible Assets

a. Check for economic issues that may have caused impairment.

b. Verify amortization amounts through amortization methods.

6. Line of Credit

a. Check with financial institutions to verify amounts in line of credit control account.

7. Accounts Payable

a. Trace amounts from accounts payable ledger to purchase orders and monthly statements.

b. Verify reconciliation of accounts payable ledger by individual independent of accounts payable function.

8. Accrued Expenses

a. Trace amounts in accrued expenses to invoices to ensure they are bona fide business expenses.

9. Capital Lease Obligations

a. Trace amounts for current maturities to current maturities control account.

b. Trace capital lease amounts to original contracts and cancelled check payments to verify accuracy of amounts.

10. Retained Earnings

a. Trace opening balance to prior year financial statements.

b. Trace debit side of Net Income/Retained Earnings adjustment to Net Income control account.

B. Income Statement

1. Sales

a. Trace balance of sales control account to sales journal.

b. Verify reconciliation of sales journal by individual independent of sales function.

c. Trace amounts in sales journal to prenumbered sales documents

2. Cost of Goods Sold

a. Trace amounts in cost of goods sold control account to purchase orders, shipping documents, and monthly statements.

3.… [read more]

Audit Quality and Agency Research Paper

… All of these play a major role in minimizing the chances of such occurrences of errors in the audit report. But sometimes these incidents do not only happen because of mistakes of the human nature. The auditors might provide such… [read more]

Audit Plan Outline Term Paper

… Audit Plan Outline

Over the last several decades, there has been an emphasis on having accountants play a central role in the financial activities of corporations. The reason why is because of various federal regulations (such as the Securities and Exchange Act of 1934). This requires firms to file quarterly reports with regulators. At the heart of this strategy, are procedures that will improve transparency (the independent auditor). This is someone who is working for the company with the intention of ensuring that management is following different accounting procedures. (Palmon, 2011, pp. 165 -- 183)

In the case study that we are examining, Keystone Computers and Networks is preparing for an audit from their accountants. To determine the best strategy that must be utilized during the process auditors need to prepare an outline of their objectives for the review. This is accomplished through creating an audit plan outline. Some of the different areas that will be focused on include: steps to decide if the client should be selected, internal controls, procedures that need to be reviewed, substantive tests and the final reporting steps. Together, these elements will provide the greatest insights as to the role that auditors play in the process and how they can be prepared for these situations.

KCN Audit Strategy




Steps to decide if the Client should be Selected.

To determine what approach will be taken in evaluating a potential client. This reduces the risks to the firm and improves the effectiveness of the audit.

To decide if a client should be selected requires focusing a number of criterion to include:

The accounting standard that is utilized.

If these standards have been changed in the past.

Review all relevant financial information over the last four years.

Evaluate the risks and rewards of conducting the audit.

Internal Controls

Internal controls are procedures inside the company that is used to identify and deal with specific risks.

There are a number of areas that the firm needs to focus on to improve internal controls. These include:

Improving inventory management.

Increasing the amount of committees to monitor the activities of managers.

Reduce the total compensation for executives of the firm away from financial performance.

Monitor how the company is able to achieve growth.

Be watchful of the various losses from using an aggressive strategy (i.e. credit losses).

These elements will help to reduce risks and improve transparency. This is when the growth and operating goals will be achievable.

Procedures that need to be Reviewed.

To determine the proper procedures that need to be reviewed requires looking at the entire organization. This will help us to identify polices that are out of date and must be changed.

There are a number of policies that need… [read more]

Non Profit Accounting Assessment

… The issue of donor-advised funds is also raised, since donors can sometimes insist that funds are used for specific purposes, thus the necessity of creating such funds. The tax treatment of donor-advised funds is outlined.

Chapter 28 covers auditing. A special type of audit is the A-133 audit, which the author outlines in detail and differentiates from a financial statement audit. Some findings need to be reported, and most auditor findings should be addressed by management because they represent something that is wrong with the financials of the organization.

Chapter 29 covers bookkeeping. As with accounting, there are different types of bookkeeping as well. The first of these is the simplest, cash-basis bookkeeping. Cash basis is a simple ledger that tracks cash transactions. Every transaction has an offsetting credit and debit. This allows every movement of cash to be understood, so that all expenses and sources of revenue are known. A trial balance is basically a cash-basis balance sheet.

A checkbook system is a fairly informal type of bookkeeping. The author argues that this system is familiar because everybody keeps a personal checkbook, but in 2014 that maybe needs to be updated, because today we need to learn these principals. The checkbook system is simply to record each disbursement and every time money comes in, simply noting where it came from or where it went. When this process becomes more formal and the information is tabulated at the end of the year, this becomes a bookkeeping system. Bookkeeping systems are still cash accounting, but a more formalized type than the checkbook system. The ethical leader will need to ensure that there are controls on cash disbursements, which is something that can be done with a bookkeeping system that records all transactions, especially all cash transactions and properly accounts for the sources and… [read more]

Sarbanes-Oxley Act Research Paper

… " (Sox-Law, 2003, p.1)

Section 404

Section 404 of the Sarbanes-Oxley Act is reported to make a requirement that issuers must publish information in their annual reports in regards to the "cope and adequacy of the internal control structure and procedures for financial reporting." (Sox-Law, 2003, p.1) This statement is required to include information on the "effectiveness of such internal controls and procedures." (Sox-Law, 2003, p.1) Finally, the registered accounting firm is required to "attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial reporting." (Sox-Law, 2003, p.1)

Section 409

Section 409 of the Sarbanes-Oxley Act states that there is a requirement for public disclosure by issuers "on an urgent basis, information on material changes in their financial condition or operations." (Sox-Law, 2003, p.1) These disclosures must be presented in a way that is easily understandable and that has the support of "trend and qualitative information of graphic presentations as appropriate." (Sox-Law, 2003, p.1)

Section 802

Section 802 of the Sarbanes-Oxley Act is reported to impose "penalties of fines and/or up to 20 years imprisonment for altering, destroying, mutilating, concealing, falsifying records, documents or tangible objects with the intent to obstruct, impede or influence a legal investigation." (Sox-Law, 2003, p.1) In addition, violation of the requirements for maintaining all audit and review papers for five years is punishable by penalties and fines up to 10 years for any accountant who knowingly or willfully violates these requirements.


The Sarbanes-Oxley Act ensures that accountants are compliant with proper reporting and public disclosure standards. The requirements of the Sarbanes-Oxley Act are clearly set out and easy to follow with no vaguely stated requirements but instead are easily understandable. It is precisely this, which the Sarbanes-Oxley Act really calls for on the part of the accounting profession -- or that of clear and easily understandable information that can be readily disseminated by the public. The very important sections of the Sarbanes-Oxley Act have been reviewed in this study and the standards for reporting and public disclosure which includes requirements of avoiding fraud or willful untruths and the penalties associated with the same including potential incarceration are prominent and provide the requirements with a great deal of strength and accompanying motivation for accounting compliance.


It is the opinion of this writer that the Sarbanes-Oxley Act should prove to be very effective in gaining compliance to the standards set out in this act for the accounting profession due… [read more]

Lease Accounting Changes Research Paper

… This standard and the ones before it are noted to have been presented in 2011 but would probably not go into effect until 2014. PWC notes that the impact of these changes will be measurable including noticeable differences on balance sheets and income statement presentations. It is also noted that these revisions would probably require, or at least make prudent, re-negotiation or even the ending of existing leasing arrangements due to the impacts that these revised standards would have. The reason is that the amount of manpower and resources poured into these revisions would force companies to re-evaluate whether they are moving in the right direction from an investment, leasing and accounting standpoint. Despite the heavily automated nature of accounting, the assessments called for in this standard revision may very well require firms to act more diligently, more deliberately and this might cause less transactions relating leasing and such to occur (PWC, 2013)(AASB, 2013) (Australian Finance Agency, 2013).

PWC notes that lessee's may lean on lessor's to provide the information but the latter may be unable or unwilling to provide that information so that could very well gum up the works even more. Additionally, PWC notes that the tax impact to the businesses involved, both lessees and lessors, will tend to vary quite a bit based on the situation at hand and the jurisdiction in question. There is also the consideration of communicating and haggling with shareholders regarding how to proceed in light of the revised standards and the impacts these standards will tend to have. This dimension is vital to touch on since stakeholders are often investors and the purse strings may very well become tightened if the prospects of leasing and/or buying new property will become more risky, more expensive or both. The risk stems from the revised accounting presentation and how this can impact the actions (and investment) of stakeholders and outside investors like stockholders and such, and all of the above can be very touchy and might be willing to yank their cash quickly (AASB, 2013).


In the end, the intentions of the IFRS revision is presumably good-hearted and is meant to keep companies consistent and honest about the figures that they are reporting. However, the burden that these revised standards create as well as the financial impacts as deemed by shareholders can be quite pressing and impactful.


AASB. (2013, September 2). AASB - Home. AASB. Retrieved September 2, 2013, from

Finance Agency. (2013, September 2). Department of Finance and Deregulation. Department of Finance and Deregulation. Retrieved September 2, 2013, from

IFRS. (2013, September 2). IFRS

Home. IFRS

Home. Retrieved September 2, 2013, from

PWC. (2013, September 2). PwC Australia - PricewaterhouseCoopers. PwC Australia - PricewaterhouseCoopers. Retrieved September 2, 2013, from

PWC. (2013, September 2). PwC: Audit and assurance, consulting and tax services. PwC: Audit and assurance, consulting and tax services. Retrieved September 2,… [read more]

Governmental Accounting Data Analysis Chapter

… Governmental Accounting

What are the inclusive dates of the fiscal year?

The fiscal dates that are included in the Comprehensive Financial Annual Report for the city of Scottsdale, AZ is from June 30, 2011 to June 30, 2012. ("Comprehensive Annual… [read more]

Accounting Ethics Research Paper

… Accounting Ethics: The Enron Scandal

A number of recent scandals in the past ten years have motivated regulators to change the legal landscape in regards to what constitutes ethical standards in accounting. With the Sarbanes-Oxley Act (SOX) in 2002, Congress… [read more]

SOX the Sarbanes-Oxley Act (SOX) Term Paper

… In that way, the accounting profession has been forced to take greater responsibility for its role in the economic system and has been given the tools to do this.


I believe that the accounting profession is better off being government-regulated, for two reasons. The first is that the objective of accounting and auditing for public companies is to ensure that trustworthiness of the country's investment system. This objective is greater than any one accounting firm or corporate client. When confidence in the investment system is compromised, firms find it more difficult to raise the capital they need. This in turn harms growth, innovation and the economy as a whole. That confidence in the accounting system has an effect on the GDP makes it a matter of national economic policy, not simply a matter for one industry.

The other reason why the accounting profession is better off being government-regulated is that the mechanics of how the industry performs its tasks will not change. Whether the enforcement mechanism comes from within the industry or from government, accounting firms will still need to do their jobs the same way, performing due diligence and implementing controls on the accounting and auditing processes. Because functionally the accounting firms will do the same jobs the same way, and the only difference between the two alternatives is who runs the enforcement mechanism, then we need to look back to the first reason for guidance. If government regulation caused dramatic changes to the way that the accountants to their business, then there might be a downside, but with no functional downside, the ability of government to ensure that accountants are performing their duties to investors is the deciding factor.


I believe that fraud will be reduced somewhat as the result of SOX. Many of the frauds that led up to the passage of SOX were outright criminal, and SOX does not directly address criminality. There will always be people who try to perpetrate such frauds. SOX removes some of the perverse incentives within the accounting system to ignore such frauds, thereby increasing the likelihood that the fraud will not only be detected but will also be dealt with.

In addition, SOX builds in extra oversight and a higher number of interconnected responsibilities. CEOs and CFOs must approve the internal controls, and so too must the auditors. For a fraud to be perpetuated, the auditors and the executives would need to work closely together. If not, the checks and balances that SOX builds into the system will be more effective in catching frauds. People will still seek to commit fraud, but SOX raises the stakes. The rash of accounting frauds that occurred in the early 2000s was thought to have been influenced by the perception that it was hard to get caught and that, if caught, the consequences would not be severe. SOX not only changed that climate, it but put the new climate in writing -- it increases the odds of a fraud being detected and… [read more]

Influence of the French Accounting System on a Former French Colony Research Paper

… ¶ … French Accounting System on Cambodia

Cambodia stands out from its Southeast Asian neighbors by virtue of its unique history as a French colony and the fact that its accounting profession was virtually destroyed during the turbulent years following… [read more]

Information Technology (IT) Auditing Research Paper

… Internal Auditing

IT Aduiting


Difficulties of establishing good internal auditing practices in a company

Many companies have developed and strengthened their internal audit department in order to meet the complexities that have been associated with companies, with many companies… [read more]

Auditing the Role of Databases Essay

… Auditing

The role of databases in the auditing function is to analyze a much larger volume of information more quickly and accurately than what has been done in the past (Cascarino, 2012). That role is important because manual systems were… [read more]

Audit Quality and Agency Research Paper

… Additionally, financial company policies are measured against legislation from agencies such as the Internal Revenue Service to make certain that the policies are within the confines of current law (Vrettos, 2010).

The second role auditors play within modern audit theory… [read more]

Accounting for That Quite Likely M Ay Research Paper

… ¶ … Accounting for that quite likely m ay be my profession, an impression that was reinforced by the interview that I had with the person (described in this essay). Accounting will give me a solid employment with a lucrative… [read more]

Accounting International Accounting and Auditing Research Paper

… Global financial reporting is quickly becoming an actuality. As home to the biggest capital market in the world, the U.S. has a vital role to play in international economic reporting. Due to the U.S.'s position in global capital markets, U.S. firms and academics can no longer worry about the expansion, application, and implications of U.S. Generally Accepted Accounting Principles (GAAP). The point has come to center on the expansion, appliance, and propositions of International Financial Reporting Standards (IFRS) (Barth, 20085). There is no arguing that global standards are the wave of the future. It is very imperative that the U.S. play a considerable role in the expansion and achievement of international accounting and auditing standards so that these are developed with their best interests in mind.

Works Cited

Barth, Mary E. "Global Financial Reporting: Implications for U.S. Academics." Accounting

Review 83.5 (2008): 1159-1179. Business Source Premier. EBSCO. Web. 6 July 2011.

Hail, Luzi, Christian Leuz, and Peter Wysocki. "Global Accounting Convergence and the Potential Adoption of IFRS by the U.S. (Part II): Political Factors and Future Scenarios

for U.S. Accounting Standards." Accounting Horizons 24.4 (2010): 567-588. Business

Source Premier. EBSCO. Web. 6 July 2011.

"How we develop IFRSs." 2011. IFRS. Web. 6 July 2011. <>

"International Accounting and Auditing Standards." 2011. The World Bank. Web. 6 July 2011.


Murphy-Smith, L., Sagafi-Nejad, T. & Wang, K. 2006. "Going Global: Accounting and Auditing

Standards." Web. 6 July 2011.

Pomeranz, Felix. "Prospects for International Accounting and Auditing Standards -- The

Transnationals in Governmental Regulations." International Journal of Accounting 17.1

(1981): 7-20. Business Source Premier. EBSCO. Web. 6 July 2011.

Richardson, Alan, and Burkard Eberlein. "Legitimating Transnational Standard-Setting: The

Case of the International Accounting Standards Board." Journal of Business Ethics 98.2

(2011): 217-245. Business Source Premier. EBSCO. Web. 6 July 2011.

"SEC Concept Release: International Accounting Standards." 2000. Securities and Exchange

Commission. Web. 6 July 2011. <> [read more]

Auditing New Century Financial Corporation Essay

… Auditing New Century Financial Corporation

KPMG served as the independent audit firm of several of the largest subprime mortgage lenders. Identify the advantage and disadvantages of a heavy concentration of audit clients in one industry or sub-industry

The problem with… [read more]

Auditing of Enron Corporation Responsible Essay

… This is unlikely, however, and an auditing firm conducting an operational audit on its own should not feel its independence threatened too strongly.

However, if the same firm is then asked to do a financial audit -- which is a historical analysis of a company's financial statements for a third party, such as investors -- the firm's independence will be threatened, as it must conduct the audit impartially, but it already has a financial relationship with the company. This many cause the auditors to fear losing the company as a client, and creates a risk that they will not manage the financial audit appropriately. In this case, an auditing firm with no past relations with the company should do the financial audit.

The third type of service is an internal audit, which is a financial audit, but done at the request of management, not a third party. This type of audit does little to threaten a firm's independence, as the results will stay within the company, allowing the auditors to be impartial and face no risk in reporting with complete honesty. However, if the firm was then requested to do a financial audit, a conflict of interest would arise.

Works Cited

Ashbaugh, Hollis. "Ethical Issues Related to the Provision of Audit and Non-Audit Services: Evidence from Academic Research." Journal of Business Ethics 52.2 (2004): 143-48.

Knapp, Michael Chris. Contemporary Auditing: Real Issues and Cases. Mason, OH: Cengage Learning/South-Western, 2010.

"The Comeback Of Consulting." BusinessWeek - Business News, Stock Market & Financial Advice. 3 Sept. 2007. Web. 05 Feb. 2011. . [read more]

Accounting Profession in 2014 Essay

… Accounting Profession in 2014

In the midst of scandal, the accounting profession finds itself under scrutiny; perhaps more than it ever has in the past. Accounting and auditing scandals have become les frequent since WorldCom and Enron, but that still… [read more]

Planning the Audit Term Paper

… Planning the Audit

Audit of the financial statements of Keystone Computers & Networks, Inc. (KCN) for the year ended December 31, 20X5. Also, the company's debt agreement with Western Financial Services requires the company to furnish the lender a report by our firm on KCN's compliance with various restrictive debt covenants.

Audit KCN for the year ended December 31, 20X5.

Issue letter on KCN's compliance with its various restrictive debt covenants.

Report of Independent Auditors

The Stockholders and the Board of Directors

Keystone Computers & Networks, Inc.

We have audited the accompanying balance sheets of Keystone Computers & Networks, Inc. As of December 31, 20X5 and 20X4, and the related statements of income, changes in equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the Unites States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Keystone Computers & Networks, Inc. As of December 31, 20X5 and 20X4, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

Charles Adam


Western Financial Services



Basis of report

Our work was conducted in accordance with the framework for reporting in connection with loan covenants set out in guidance issued by the Consultative Committee of Accountancy Bodies. We have read the attached Statement prepared by the Board of Directors. Our work was based on obtaining an understanding and reasonable assurance of compliance of… [read more]

Internal Auditing Term Paper

… Internal Auditing

Over the past two decades, a number of changes took place that greatly altered the business world. Some of these were external, such as ever-increasing globalization, growing competition and fast-paced technological innovations. However, some of the changes were… [read more]

Small Accounting Firm Can Add Term Paper

… Throughout, our clients have trustfully relied on us to provide more than just audits, tax returns, etc.

Our clients would be able to benefit from outsourcing services such as, internal auditing, temporary accounting, litigation support, and much more. With capable corporate finance advisory and transaction services, we would focus on helping our clients analyze the financial, organizational, and operational impact of mergers and acquisitions, divestitures, and even international investments.

Our team can assess a client's prospective deal, investigate the potential target, and suggest solutions to any problems that arise. We also assist companies seeking to raise funds or gain a stock market listing. In addition, our assurance professionals have created a full range of technology risk management services. These offerings help protect our clients from technology interruptions, security breaches, system failures, and other potential high-tech threats.

At our accounting firm, tax-consulting specialists are dedicated to the task of developing and implementing intelligent ideas, strategies, and innovative solutions to provide companies with ways of reducing their tax bills. We have also put our employees under intensive training to provide professionally skilled information in the areas dealing with federal tax, state and local tax, international tax, valuations, public finance, and compensation and benefits. Customized solutions to tax options will help save client's time, money,… [read more]

Accounting Information Essay

… Enhancing Qualitative Characteristics:

Apart from the fundamental qualitative characteristics, accounting information has enhancing qualities i.e. comparability, verifiability, timeliness, and understandability. Verifiability of accounting information is an important component in promoting reliability and refers to agreement among various measures. This means that the information must be consistent with market value and other factors used by appraisers. Therefore, the information should contain some measure of objectivity, which is associated with verifiability.

Understandability is the expression of accounting information in a clear manner that will be comprehensible by users. This is an important characteristic because users are generally presumed to have rational knowledge of economic and business activities. While accounting information may contain complex matters, it should be presented in a way that it can be understood by all users including a layperson.

Comparability is the ability to assist users to identify the similarities and differences across various financial conditions and events. In this case, accounting information should be prepared in a way that promotes evaluation of the business information within a certain period of time and compared to similar entities within the same period. One of the major ways to ensure comparability of accounting information is by complying with the international accounting standards. The significance of this characteristic is that it allows a business to review accounting information against that of a rival (Vitez, n.d.).

Timeliness is a significant component of relevance and means that the accounting information should be available to users at an appropriate time for its use in the decision-making process. Due to the need for timely information, businesses or companies are legally required to provide information to external users periodically. The significance of timeliness is attributed to the use of accounting information in decision making by internal and external stakeholders.

Effect on Decision Making:

Each of these qualitative characteristics of accounting information play a crucial role in the decision making process of a business. Business owners use understandability to comprehend accounting information while consistency is used to ensure similar handling of financial transactions and usefulness promotes applicability of the information in decisions. Relevance is used during trend analysis of financial information while reliability ensures the development and sustenance of accurate accounting information. In addition, relevance also ensures that accounting information is available to users at the appropriate time in the decision making process.

In conclusion, accounting information consist quantitative and qualitative characteristics, which play a crucial role in the use of accounting information. Generally, qualitative characteristics are attributes associated with the seeming importance of financial information and used for decision making. Some of the major qualitative attributes of accounting information include reliability, relevance, consistency, understandability, comparability, and usefulness.


Spiceland, J.D., Sepe, J.F. & Tomassini, L.A. (2007). Intermediate accounting (4th ed.).

Retrieved February 20, 2014, from

Vitez, O. (n.d.). Qualitative Characteristics of Accounting Information. Retrieved February 20,

2014, from [read more]

Accounting in Just Essay

… If the company borrowed that cash, there would be no entry that reflects the loan obligation, nor would there be any entry that reflects the useful life of that asset. The company would record a substantial loss for that quarter based on cash flows, but then have substantial profits in all the other quarters. This again is a distortion of the company's financial picture, and accrual accounting seeks to remedy this issue. Under accrual accounting, the purchase would be amortized, so that the expense only shows a little bit each quarter for the expected useful life of the asset. This would be offset by the periodic revenues generated from the asset. This matching of asset costs and benefits is closer to economic reality for the company, and that is why it is an important part of the accrual accounting system.

As these examples illustrate, the accrual system is much better with respect to dealing with complexity. Accrual accounting is therefore useful for any business that does not operate on a strictly cash basis. Only those businesses that operate on a cash basis should use cash accounting. The minute that there is a misalignment between when a transaction occurs and when the cash flow occurs, the accrual system is better.

Further, the accrual system is differentiated in that it is used by professional organizations, the SEC and it is the only system used for tax purposes. For financial statements this is an important distinction. Neither investors nor regulators will accept cash basis statements, so a company that is producing them is not going to be treated well. It is too easy to manipulate statements using cash accounting simply by making adjustments to the timing of the cash flows. The IRS in particular is not a fan of this, and insists on accrual accounting as a means of ensuring that companies are portraying their financial condition accurately.

Overall, the cash accounting system only makes sense for very small companies, and even then it runs into problems when large purchases, financing or credit purchases are made. Thus, it is important for companies to understand what accrual accounting is, what the rules are and to always apply it. The basic accrual accounting system in the U.S. is the GAAP, or generally accepted accounting principles, and these guide should be used as the basis for any accrual accounting system. The reason is that we use accrual accounting for its ability to handle complexity, but also for its ability to deliver statements that are consistent. Thus, companies cannot simply make up their own rules, they must instead follow established rules for accrual accounting.

Works Cited:

Fishman, S. (2013). Cash vs. accrual accounting. Retrieved November 4, 2013 from

No author. (2013). Cash vs. accrual accounting. Inc. Magazine. Retrieved November 4, 2013 from (2013). Cash vs. accrual accounting for taxable income and expenses. U.S. Small Business Administration. Retrieved November 4, 2013 from

Shanker, S. (2013). Accounting methods: Cash vs. accrual. Houston Chronicle. Retrieved November… [read more]

GAAP Generally Accepted Accounting Principles Essay

… cost basis accounting "which adheres to the revenue recognition, matching, and cost principles…[this method] captures the financial aspects of each economic event in the accounting period in which it occurs, regardless of when the cash changes hands" GAAP, 2013, Houghton Mifflin Harcourt).

GAAP also suggests that entities adhere to what is known as the time period assumption, which suggests that an artificial time period, however 'constructed' must be used to define periods of reportage. "Using artificial time periods leads to questions about when certain transactions should be recorded" (GAAP, 2013, Houghton Mifflin Harcourt). An initial investment in hospital equipment may be very costly one year, but not so in subsequent years and even may result in a gain for the organization in terms of profitability. Regardless, the principle of GAAP is that whatever time frame is chosen, it should be the one which most accurately reveals the organization's financial health. Then, "once the time period has been established, accountants use GAAP to record and report that accounting period's transactions" (GAAP, 2013, Houghton Mifflin Harcourt).

Other principles of GAAP particularly relevant to healthcare include the full disclosure principle which states that "financial statements normally provide information about a company's past performance. However, pending lawsuits, incomplete transactions, or other conditions may have imminent and significant effects on the company's financial status. The full disclosure principle requires that financial statements include disclosure of such information" via footnotes (GAAP, 2013, Houghton Mifflin Harcourt). Given the widespread existence of lawsuits throughout the healthcare industry, this is particularly significant for organizations: not only regarding lawsuits specific to the entities themselves but also to the types of products used and prescribed by providers at the entity.

Conclusion: The principled nature of GAAP

In contrast to some other forms of financial accounting, GAAP emphasizes principles vs. technical knowledge on the part of the accountant. The professional accountant is assumed to uphold a system of ethics rather than solely adhere to the letter of the law. All financial statements must be reflect "relevance, reliability, and consistency" and the conservation principle which means "in reporting financial data…the less optimistic estimate be chosen when two estimates are judged to be equally likely" to protect shareholders and other persons relying upon the report (GAAP, 2013, Houghton Mifflin Harcourt). And above all else, the principle which trumps all is that materiality principle which states that all of the previously-stated principles should be ignored if a misleading portrait of the organization's financial status and health would be created, if these other principles should be obeyed: material honesty is the aim of all accounting efforts in healthcare and all entities (GAAP, 2013, Houghton Mifflin Harcourt).


GAAP. (2013). Houghton Mifflin Harcourt. Retrieved:

Kramer, J & Applebaum, S. (2013). Accounts receivable from third-party payors: A GAAP

refresher. South Florida Hospital News. Retrieved from: [read more]

Technology on the Accounting Profession Term Paper

… S., as any company in this category must file their financial statements with the U.S. Securities and Exchange Commission (SEC). The SEC has been testing and continually validating the XBRL standard for the last several years and now every company who is publically traded needs to file reports using this standard (Brands, 2013). While the XBRL standard only applies to publically-held companies, all accounting and finance companies need to be able to gain greater insights from their legacy systems through the use of systems and process integration (Ionescu, Ionescu, Mihai, Cojocaru, 2009). This area continues to flourish, with the role of cloud-based integration architectures (Arnesen, 2013) and role of advanced connectivity applications becoming more commonplace than ever.

The impact of smartphones and tablets also continue to have a widespread effect on the accounting profession (Jelen, 2013) completely changing the nature and extent of how analytics and reporting applications are used (Christensen, Skaerbaek, 2010). Designing applications specifically for mobility platforms is becoming commonplace for many organizations whose executives want to have access to analytics and metrics of performance in real-time, regardless of where they are.

How Cincom's Accounting Systems Have Changed Based On New Accounting Technologies

Cincom has been in business over 40 years and has many antiquated legacy accounting systems and professes. It is in many ways trapped in the 20th century in terms of technology. Yet the recent addition of accounting and financial integration tools via a SaaS platform has given the company greater visibility into short- and long-term costs. It has also made it possible for the company to over forward with cloud-based accounting and finance systems that are providing a more realistic glimpse into their license and contact management revenue. By integrating legacy systems and creating a common system of record, Cincom is also now able to create a single dashboard using financial reporting analytics, and their CEO can how pull up a report from anywhere on his smartphone. Cincom relies heavily on accounting and financial reporting systems that are cloud-based to have a more accurate view of their business.


Arnesen, S., C.P.A. (2013). Is a cloud ERP solution right for you? Strategic Finance, 94(8), 45-50.

Brands, K., C.M.A. (2013). XBRL and big data. Strategic Finance, 95(2), 64-65.

Christensen, M., & Skaerbaek, P. (2010). Consultancy outputs and the purification of accounting technologies. Accounting, Organizations and Society, 35(5), 524.

Collins, J.C. (2013). Technology Q&A. Journal of Accountancy, 216(2), 68-70,72.

Ionescu, I., Ionescu, B., Mihai, F., & Cojocaru, S. (2009). Financial And Accounting Information Systems Interoperability. Annales… [read more]

Legislation and Standards Term Paper

… Issues of legal protection, like the degree of recourse given to creditors of investors who have been hurt as a major aspect of the nation's regulatory and legal framework might affect the audit. In the business world where investors have… [read more]

Auditing Operating Standards Research Paper

… General

I. Auditors should have sufficient proficiency and technical training to conduct audits

II. Auditors ought to maintain independence of their mental attitudes in all issues pertaining to the audits

III. Auditors should practice maximum professionalism when performing the audits and preparing auditing reports

Fieldwork standards

I. Auditors must sufficiently plan their work and appropriately supervise any assistants

II. Auditors should acquire an adequate understanding of entities and their environments. This includes assessing statements of risk materials whether due to fraud or error, checking internal controls and designing the timing, nature and extent of additional audit procedures (Giove, 2012).

III. Auditors should acquire adequate proper audit evidence by conducting procedures of auditing to have a reasonable ground for opinions about financial statements being audited

Reporting standards

I. Auditors are required to state in their auditors' reports if the financial statements are in line with the principles of GAAS

II. Auditors must establish in their reports circumstances under which some principles have not been constantly adhered to in the period of current as it related to the preceding period

III. In case the determination of enlightening disclosures are inadequate, they must illustrate in the auditors' reports

IV. Auditors should either express opinions about the fiscal statements or show that opinions cannot be expressed within the auditors' reports. When it is impossible to express auditors' overall opinion, they must state reasons thus in the auditors' reports. In a case an auditor's name is related to a financial statement, he/she must clearly cite the feature of the auditors' work and the level of responsibility taken (Giove, 2012).


American Institute of Certified Public Accountants. (2009). Generally accepted auditing standards, their significance and scope. New York: A.I.A.

Giove, F.C. (2012). The essentials of auditing. Piscataway, N.J: Research and Education Association.

Delaney, P.R., & Feller, A.L. (2011). Wiley CPA examination review: 38th edition, 2011-2012. Hoboken, N.J: John Wiley &… [read more]

US General Accounting Office Annotated Bibliography

… Henczel, S. (2000). The Information Audit as a First Step Towards Effective Knowledge Management: An Opportunity for the Special Librarian. INSPEL 34 (2000),: 210- 226. Retrieved from n%2 0 special%20libraries.pdf

This article sang the praises of information as the key to any organization and then argued that controlling the acquisition and access to information resources is becoming more difficult. As a result a higher level of evaluation and quality control need to be considered. This article discussed the literature to support its claims and provides useful information calling for increased security considerations.

Ruiz, J. (2008). COBIT as a Tool for IT Governance: between Auditing and IT Governance. UpGrade, 9(1), February 2008. Retrieved from

This source provides an analysis of the usefulness of COBIT for the suitability of IT governance. Both the strengths and weaknesses of this system is analyzed in this article before comparing it to Peterson as an alternative means of governance. The article eventually concludes that IT governance must be aligned with the strategic aims of the organization.

The Institute of International Auditors (2012). "Global Technology Audit Guide 17, Auditing IT Governance. " Issued July 2012.

This source examines auditing practices from a different type of academic source. This article argued that internal audit activity must be staffed with competent members dedicated to achieving goals. The article claimed that the internal audit activity must assess whether the information technology governance of the organization supports the strategies and objectives.

Melville, N. (2010). Information Systems Innovation for Environmental Sustainability. MIS Quarterly 34(1), March 2010: 1-21. Retrieved from

This source makes a plea that information systems integration and innovation is essential to the life of any and every organization. The article introduced the Belief action outcome (BAO) framework as an acceptable means to introduce the information technology systems into the larger environment. [read more]

Australian Accounting the Complicated World Research Paper

… The number of accountants employed at the professional level has risen strongly over the past decade, from around 100,000 in 1996-97 to just over 140,000 in 2005-06.

Current Practices of the Firm

The current practices of this firm are based on the adoptinon of the IFRS' standards. This began at the beginning of 2005 and is still in place today. This standard is in line with the European Union's directives and was applied with the 2004 IFRS stable platform (Grossinger 2007). The adoption of these rules is both beneficial to the client and the firm. The costs to preparers, auditors and users of multinational financial reports are now standardized and easier to read. As a result, Australian entities' financial reports are more readily understood world-wide and gaps in the AGAAP are more complete, (AASB).

Future Developments

While the future is often hard to define, our firm is confident that any changes to international accounting standards can be taken in stride while providing the best accounting services available in this country. This does not mean there are challenges in our future, there are. McGregor (2008) suggested that "the evolution of the accounting standard-setting process in Australia will bring further significant changes as we move to introduce major features of the structures existing in the United States and the United Kingdom." In other words, the global marketplace will dictate this movement.

Grant Thornton's survey about these practices suggested that "i n retrospect, four out of five respondents were supportive of the decision to adopt IFRS for financial reporting periods commencing in 2005, even though there were mixed feelings regarding the impact it had on business when it was first adopted. Those who felt its impact was negative balanced out against those who felt IFRS had a positive impact and 26% of respondents stated that IFRS had no real business effect when first adopted. Not surprisingly, 80% supported simplification of the current IFRS requirements (p.5).

Regardless, here at the firm we are confident that we can handle any client's accounting needs and ensure that they will meet all international reporting standards. The movement towards global financial standardization is nearing and we feel that we are securly positioned to take advantage of these trends and can continue manipulating numbers to our client's needs and expectations.

References "Financial Regulation." Viewed 28 Aug 2013. Retrieved from

Cortese, C. (2009). The power of history: accounting standard setting and the extractive industries in Australia. The 1st Accounting History International Emerging Scholars' Colloquium, University of Siena.

Delatribe, D. (2007) Getting along in the accounting world. Accountants Friend, 28 June 2007.

Financial Accounting Standards Board. "International Convergence of Accounting Standards, A Brief History. Viewed 28 Aug 2013. Retrieved from

Grant Thornton (2009). IFRS Survey: Four Yearson- where to from here? June 2009. Retrieved from

Grossinger, R (2007). Complications from Accounting Standards. Journal of Accounting Standards, June 2007.

McGregor, W.J. (1995), The Setting Of Accounting Standards in… [read more]

Smakey Dog Foods Essay

… For example, if the auditor failed to uncover something that the company purposely hidden, then the firm might argue that they performed their duties to the best of their abilities and would not incur legal liability.

Works Cited

Georgescu, I., Betianu, L., & Macovei, C. (2006, August). The Role of the Management Accounting in Financial Auditing Quality Enhancement. Retrieved from Social Science Research Network:

Investopedia. (N.d.). Positive Confirmation. Retrieved from Investopedia:

Pacini, C. (N.d.). Accepting the Engagement and Planning the Audit. Retrieved from FGCU:

PCAOB. (N.d.). The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements. Retrieved from PCAOB:

U.S. Securities and Exchange Commission. (N.d.). Standards Relating to Listed Company Audit Committees. Retrieved from SEC: [read more]

Agree With Accountant B's Philosophy Case Study

… primarily because system controls provide a means of preventing errors from occurring in the first place. It allows both the accounting firm and the business to more proactive rather than reactive to inventory concerns and considerations. The proactive nature allows investors and other stakeholders to remain confident in the overall business operations of the firm. It also allows management to stay in touch with inventory levels and adjust business operation accordingly. To avoid these occurrences from happening again, tight inventory controls should be implemented. In addition top level management must be held accountable for these inventory levels, with incentives directly linked to behaviors. In this way, management will act in the best interests of the company (Goodyear, 1913).

Agency Theory, contracting costs, and firm value are all relevant issue pertaining to the case. Agency theory, contracting costs, and firm value are all predicated on aligning incentives with benefits. This alignment creates an atmosphere where all stakeholder groups have a vested interest in the company. Contracting theory for example pertains to issue of executive compensation and aligning incentives to maximize the WHK shareholder wealth. Agency theory pertains the relationship (or lack thereof) between an individual and those that represent the individual. This occurs when management does not act in the best interests of shareholders, as is the case with WHK. Both concepts relate to firm value as misplaced incentives can lower the value of the firm relative to other companies with correct incentives in place. As such both the accounting firm and the business overall must create inventory incentives that minimize agency costs and align management goals with those of other stakeholders (Lo, 2013).


1. Lo and Fisher: Intermediate Accounting, 2nd edition, Pearson, Toronto 2013, ISBN 978-0-13-296588-0, p. 2-102,

2. Goodyear, Lloyd Earnest: Principles of Accountancy, Goodyear-Marshall Publishing Co., Cedar Rapids, Iowa, 1913, p.7-76

3. Singh Wahla, Ramnik. AICPA committee on Terminology. 1999 Accounting Terminology Bulletin No. 1 Review and Resume.

4. Friedlob, G. Thomas & Plewa, Franklin James, Understanding balance sheets, John… [read more]

Gasb Statement 34, Basic Financial Research Paper

… This appears to be true in the case of Columbus Consolidated Government's CAFR for fiscal year 2011, as the method of accrual accounting is used in comprehensive fashion to prepare financial statements for every aspect of the government's financial activity. According to several footnotes contained in the CAFR, "information has been provided beginning with the year of implementation of GASB Statement 34, June 30, 2002" (Hodge, 2012), which effectively documents the CAFR's adherence with GASB Statement 34 and the applicable provisions contained therein.

4.) Evaluate management's discussion and analysis (MD&A). In your evaluation, analyze the significant information in the MD&A and how the information contributed to the clarity of the financial statements. From your analysis of financial statements, identify and analyze information that should be included in the statements.

The CRAF released by Columbus Consolidated Government includes a comprehensive Management's Discussion and Analysis (MD&A) section, which "immediately follows the independent auditor's report and provides analysis of the past year's operations of general government and major enterprise activities, and an overview of the Consolidated Government's current and future economic picture" (Hodge, 2011). This particular MD&A portion of the CRAF is extremely informative and navigable even for financial laymen, containing Financial Highlights section to describe a broad review of the report's most salient data, and an Overview of the Financial Statements which provides detailed descriptions of each of the various fund statements used to construct the entire citywide budget.

5.) Determine whether the entity's financial position improved or deteriorated during the reporting period. Speculate on the causes from your review of the financial statements.

The CRAF released by Columbus Consolidated Government reports a net loss in its total government fund, derived by calculating the net change in the various fund balances, of ($48,284,983), and a loss in net assets of governmental activities of ($39,565,808). This data provides a clear indication that the city of Columbus has been affected negatively by the prolonged recession, as well as its own internally made investment and capital project choices.


Hodge, P.J. Columbus Consolidated Government, Finance Department. (2012). Comprehensive annual financial report . Retrieved from website:

GASB. (1999). Summary of statement no. 34 basic financial statements -- and management's discussion and analysis -- for state and local governments.Governmental Accounting

Standards Board, Retrieved from [read more]

Letter of Intent to Graduate Program in Accounting Term Paper

… ¶ … graduating with a degree in marketing from Concordia University, I was privileged to obtain a wide range of experiences in the field of business. Gradually, it became clear to me that my interests and aptitudes lay in the field of accounting. The detail and rigor of the field compelled me to pursue it further. [My interest in the field of study and the reasons for applying to the program]

One of my most formative and memorable experiences included working for TD Bank where I was able to work with numbers every day, and which used my detail-orientation to its maximum extent. I also worked as a marketing and sales associate for Microsoft which further honed my analytical qualities. Microsoft honed my ability to engage in effective time management, to multitask, and work within a dynamic team environment, all qualities which will enhance my ability to serve in the profession of accounting. [a description of my professional experience and its relevance, if applicable, to the program]

McGill's accounting department offers one of the premier programs in all of Canada, and would enable me to specialize in the field of accounting in the future, channeling my energies so I may assist organizations in making better use of their scarce resources. [My interest in the field of study and the reasons for applying to the program] My marketing background and experience with quantitative analysis would allow me to enhance the dialogue of any classroom of which I was a part and would enable me to apply what I learned academically to numerous real world examples.

Accountants are uniquely poised to flag potential losses and to offer a source of additional revenue and value to an organization through cutting waste. What intrigues me about accounting is the degree to which it affects the entire organization: an accountant can note if too much is being spent upon input costs and processes, for example, versus its human resources. Ultimately, so many business problems are rooted in accounting. [How an Accountant can add value to the company] Even a high-quality organization that has an important mission which it fulfills for the public or a business that provides critical services can be undone by its finances. Accountants 'add value' to a company by being able to objectively evaluate… [read more]

Forensic Accounting in Practice Research Paper

… Forensic Accounting in Practice

Over the last several years, forensic accounting has been playing an important part in helping to detect and prevent fraud. This was in response to a number of high profile cases involving a host of abuses. To fully understand the role of the industry in achieving these objectives requires focusing on: five skills a forensic accountant needs to possess, their function, legal responsibilities and two cases. Together, these different elements will illustrate the significance of forensic accounting in mitigating potential risks and enhancing transparency. (Riley, 2011)

Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations.

The five different skills that a forensic accountant must possess include: auditing, finance, research, understanding select areas of law and investigative techniques. In the case of auditing, these tactics must be used to carefully examine a corporation's records. This helps to prevent and detect fraud. These tools will ensure that a firm is efficiently operating its business by reducing illegal activities and increasing transparency. (Pedneault, 2012)

Finance is when actuaries are carefully tracking where the money is being spent. In any firm, this will highlight potential red flags. As this allows them to monitor and determine where all the funds are going. This relates to the operation of a corporation, by establishing procedures for detecting when this is happening. As far as research is concerned, these individuals must have the ability to dig through the most mundane pieces data. This provides actuaries with a track record of all activities. These practices can be used to help improve a firm's operations by providing it with the personnel who will find these facts. (Pedneault, 2012)

Understanding select areas of law are when accountants must identify if illegal activity is occurring. This requires knowing different financial regulations and how they apply to the firm. These areas will focus the direction of the investigation. This improves a business's operations by keeping executives in compliance with all regulations and determining when someone has breached them. (Pedneault, 2012)

Investigative techniques are when actuaries know how to examine, gather and look for evidence. This means studying various sources of data in the process. These skills help to identify areas where wrongdoing was committed. This assists firms in quickly realizing when they have a problem and go after the root causes. In the future, this prevents fraudulent activities from spreading. (Pedneault, 2012)

Describe the role of a forensic accountant within a courtroom environment.

In a courtroom, the forensic… [read more]

FASB Impacts the Financial Accounting Term Paper

… Doing away with LIFO will cause additional tax in the current year with the possibility of changes in accounting tax methods and computation of book tax differences as tax return changes come about (Andrews, 2010).

Analysis: The proposals will probably… [read more]

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