Reference no: EM132045801
Assignment - Auditors and Regulatory Oversight
The Securities and Exchange Commission (SEC) regulates public companies. The SEC has found that some of these companies have violated GAAP by using creative accounting practices to mislead investors and creditors regarding the health of their company.
Use the Internet or to research a recent accounting scandal within the last five (5) years where the SEC accused public companies of accounting irregularities.
Write a three to four (3-4) page paper in which you:
1. Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response.
2. Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.
3. Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden. Defend your position.
4. Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Provide a rationale for your response.
5. Use at least two (2) quality academic resources in this assignment.
|
Find controlling interest share of consolidated net income
: Poe Corporation owns an 80% interest in Seri Company acquired at book value several years ago. On January 2, 2011, Seri purchased $100,000 par.
|
|
Downward direction to be the negative direction
: Take the downward direction to be the negative direction.
|
|
What is the stocks expected price one years from today
: A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1 = $2.50), and it should continue to grow at a constant rate of 5% a year.
|
|
What should be the price of portage bay stock
: Portage Bay Enterprises has $ 3 million in excess? cash, no? debt, and is expected to have free cash flow of $ 13 million next year.
|
|
Research a recent accounting scandal
: Use the Internet or to research a recent accounting scandal within the last five (5) years where the SEC accused public companies of accounting irregularities
|
|
How far above the top of this window is the roof
: An observer inside the building notices that it takes 0.19 s for the tile to pass her window, which has a height of 1.3 m. How far above the top of this window?
|
|
What is the future value of the given deposits
: Your paycheck today is $80,000 (on your 30th birthday) and you expect your paycheck to increase by 10% each year, starting your 31st birthday.
|
|
Calculate the standard deviation of each risk premium
: Calculate the average rate of return and standard deviation of returns for the TSX, government bonds and Treasury bills between 2010 and 2014.
|
|
Provide short list with brief explanations and justification
: The policy action of government, central bank in particular in dealing with financial crisis and economic slowdown in recent years.
|