Evaluate impact of regulatory changes on financial operation

Assignment Help Accounting Basics

Reference no: EM132835115

Discussion: Creative Accounting Debate

Getting Started

Following major scandals at U.S. firms like Enron, WorldCom, Global Crossing, and Tyco, congress passed the Sarbanes-Oxley Act ("Sarbox") in 2002. Sarbox created the Public Company Accounting Oversight Board to oversee auditors of public companies. It banned company loans to executives and established new protections for whistleblowers. It set higher requirements for the independence of corporate boards. Perhaps most importantly, it made CEOs personally liable not only for the accuracy of publicly issued financial statements but also for the robustness of the financial processes used to create them.

Two decades after the passage of Sarbanes-Oxley, there is reason to believe it has improved internal controls and the reliability of financial statements. However, this has come at a price, and the Act has been subjected to great criticism. There has been some talk of overhauling or even completely repealing the bill. Meanwhile, a new phenomenon has arisen that is causing many to once again question the veracity of public financial statements: the reporting of so-called "adjusted earnings" and other creative measures.

Upon successful completion of this discussion, you will be able to:

Question 1: Evaluate the impact of regulatory changes on financial operations.

Question 2: Analyze the appropriateness of creative accounting measures.

Reference no: EM132835115

Questions Cloud

How does president mueller communicate and live a vision : How does president Mueller either explicitly or implicitly state university values. What, if any, principles of servant leadership are exhibited?

What is the carrying amount of bonds payable on December : On January 'I, 2020 the carrying amount of the bond was P5,250,000.00. What is the carrying amount of bonds payable on December

Different types of competition in private enterprise system : What are the different types of competition in the private enterprise system? In your opinion which planned economy works best?

PLBA 1000 Philosophy of Law Assignment : PLBA 1000 Philosophy of Law Assignment Help and Solution, Humber College - Assessment Writing Service - Briefly describe the concept of the Duty to Consult

Evaluate impact of regulatory changes on financial operation : Evaluate the impact of regulatory changes on financial operations. Sarbox created Public Company Accounting Oversight Board to oversee auditors of public co

What god has uncovered your servants guild : What are you still running from God, or have you been cleansed and transformed by the blood of Chris?

What is the depreciation every year : The fixed costs will be $37,000 a year and the variable costs will be $148,000 per park. What is the depreciation every year

Use of any quantitative analysis model : 1. It is important to understand the assumptions underlying the use of any quantitative analysis model.

Discuss the ethics of hosting a mega-sporting events : Discuss the ethics of hosting a mega-sporting events in underdeveloped countries and the lasting impact these types of events may have on the region.

User Account

All Pages