Impact of Enrons collapse on the accounting profession Essays

Impact of Enrons collapse on the accounting profession Essays Impact of Enrons collapse on the accounting profession Essay Impact of Enrons collapse on the accounting profession Essay The fiscal travesty at Enron Corporation in US corporate sector dented public sentiment over the effectivity and moralss of fiscal accounting, coverage, and scrutinizing procedures. President George W. Bush signed into jurisprudence the Sarbanes-Oxley Act of 2002 to guarantee the effectivity of answerability criterions for managers and top executives. The Act is structured into 11 rubrics. These rubrics are farther subdivided into 66 subdivisions which deal with hearer s independency, corporate duty, enhanced fiscal revelations, struggles of involvement, corporate answerability, among other things. The chief focal point of my reappraisal will be on subdivision 404: Internal Control. Section 404: Internal Controls. States Management must province their duty in set uping, maintaining, and analysing the internal control construction, and must measure the effectivity of such procedures 2. SECURITIES AND EXCHANGE COMMISSION The mission of the US Securities and Exchange Commission is to protect investors, maintain just, orderly, and efficient markets, and facilitate capital formation. ( US Securities and Exchange Commission, 2006 ) . Equally shortly as the Sarbanes-Oxley Act of 2002 was signed into jurisprudence, the execution function and the authorization to supervise the Public Company Accounting Oversight Board ( PCAOB ) were assigned to Securities Exchange Commission ( SEC ) . Schaeffer ( 2006 ) states that although Sarbanes-Oxley Act of 2002 was signed into jurisprudence, corporate components were given a small leeway in following with assorted demands, and SEC besides had to widen the conformity deadline for another twelvemonth for the non accelerated filers to follow with the filing demands under the subdivision 404 of the Act. 3. PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD The passage of Sarbanes-Oxley Act of 2002 established the Public Company Accounting Oversight Board. PCAOB is a private-sector, non-profit corporation created by the Sarbanes Oxley Act of 2002 to supervise the accounting professionals who provide independent audit study for publically traded companies. ( US Securities and Exchange Commission, 2006 ) . Their vision is to seek to be a theoretical account regulative administration. Using advanced and cost effectual tools, the PCAOB purposes to better audit quality, cut down the hazard of scrutinizing failures in the U.S. public securities market and advance public trust in both the fiscal coverage procedure and scrutinizing profession. ( Public Company Oversight Board, 2003-2010 ) . The PCAOB has been empowered to implement disciplinary and remedial actions against accounting professionals for breach of regulations and accounting criterions. They carry out these maps through standard scenes, appraisal, and enforcement programs. PCAOB issued Auditing Standard No.2 ( AS2 ) : Audited accounts of Internal Control over Financial Reporting Performed in Conjunction with an Audited account of Fiscal Statements. They concluded that the best attack to run into all the demands is to follow the COSO Framework. This was foremost published in 1992 by the Commission of Sponsoring Organisations of the Treadway Commission ( COSO ) under rubric of Internal Control Integrated Framework. 4. Committee OF SPONSORING ORGANISATIONS OF THE TREADWAY COMMISSION COSO was formed in 1985 to patronize the National Commission on Fraudulent Financial Reporting, an independent private-sector enterprise which studied the insouciant factors that can take to deceitful fiscal coverage. ( Committee of Sponsoring Organisations of the Treadway Commission, 2010 ) . The National Commission was sponsored jointly by five major professional associations headquartered in the United States: the American Accounting Association ( AAA ) , the American Institute of Certified Public Accountants ( AICPA ) , Financial Executives International ( FEI ) , the Institute of Internal Auditors ( IIA ) and the Institute of Management Accountants ( IMA ) . ( Committee of Sponsoring Organisations of the Treadway Commission, 2010 ) . Harmonizing to COSO its mission is to supply thought leading through the development of comprehensive models and counsel on endeavor hazard direction, internal control and fraud disincentive designed to better administration public presentation and administration and to cut down the extent of fraud in administrations. 5. INTERNAL CONTROL INTEGRATED FRAMEWORK Internal Control Integrated Framework, published by the Committee of Sponsoring Organisations of the Treadway Commission addresses the concerns identified in Section 404 of Sarbanes-Oxley Act of 2002. The model was developed to back up companies in guaranting the efficiency of their fiscal, operational, and conformity related internal controls. PCAOB recognises the effectivity of the model and issued in Auditing Standard No.2 ( AS2 ) that direction are required to measure the effectivity of their internal control over fiscal coverage, utilizing suited control standards such as the COSO Framework. 6. OBJECTIVES OF INTERNAL CONTROL INTEGRATED FRAMEWORK COSO ( 2010 ) defines internal control as a procedure, effected by an entity s board of managers, direction and other forces, designed to supply sensible confidence sing the accomplishment of aims in the undermentioned classs: Effectiveness and efficiency of operations: This deals with administration primary aims and that includes public presentation and profitableness ends and safeguarding of resources. Dependability of fiscal coverage: This deals with the readying of dependable published fiscal statements. Conformity with applicable Torahs and ordinances: This addresses conformity with Torahs and ordinances to which to which the entity is administration is capable. The aims of COSO model is to publish a model that has a common cognition of internal control amongst its users and assist direction in measuring and bettering its internal control. 7. Components OF INTEGRATED FRAMEWORK The original internal control integrated model had five interconnected constituents. These constituents are: Control Environment Hazard Appraisal Control Activities Information and Communication Monitoring The model was updated in the twelvemonth 2004 to foreground the significance of placing and pull offing hazard across the endeavor. The three constituents that were added are: Objective Puting Event Designation Hazard Response All of these constituents have to be satisfied before an administration s internal control can be deemed to be effectual and efficient. 7.1. CONTROL ENVIRONMENT The control environment of an administration is of import in measuring the internal control system of an administration. The control environment consists of ethical values, unity, competencies of employees and direction s doctrine and operating manner. Harmonizing to Schaeffer ( 2006 ) The internal environment encompasses the tone of an administration and sets the footing for how hazard is viewed and addressed by an entity s people, including hazard direction doctrine and hazard appetency, unity and ethical values, and the environment in which they operate. 7.2. Hazard ASSESSMENT Harmonizing to Khawar ( 2008 ) all administrations have to confront both internal and external hazards. He farther states that the chief ground for these hazards are the changing nature of economic, industry, ordinances, and operational activities. Management needs to determine and measure the hazard associated with the readying of dependable fiscal statements. As stated by Schaeffer ( 2006 ) Hazards are analyzed, sing likeliness and impact, as a footing for finding how they should be managed. Hazards are assessed on an built-in and residuary footing. 7.3. Control ACTIVITIES Once hazards are identified, appropriate steps and other control activities are put into pattern to assist guarantee the realization of the fiscal coverage aims. The control steps are the policies and processs that help guarantee that direction directives are carried out. ( Committee of Sponsoring Organisations of the Treadway Commission, 2010 ) . These steps occur within the full administration, in all degrees and they include scope of step every bit diverse as blessings, confirmations, segregation of responsibilities, mandates, rapprochements and reappraisals of operating public presentation.

The Best IB Economics Notes and Study Guide for SL

The Best IB Economics Notes and Study Guide for SL/HL SAT / ACT Prep Online Guides and Tips Are you taking IB Economics but feel you aren't learning enough from your class alone? Maybe you need more explanation of certain economics topics? If you need some help in your IB Economics SL/HL class, this study guide is for you. I’ve gathered all of the best free IB Economics study guides and notes into one useful article. This IB Economics study guide is organized according to the IB Economics Syllabus. How to Use TheseIB Economics Notes and Study Guide If you are looking for help with one topic, use the Command + F function on your keyboard to search this article for that topic. For instance, if you want to learn more about Markets, use Command + F to bring up the search function. Type in â€Å"Markets† and it’ll bring up all of the study materials for Markets. I separated the resources into: Quick reference: one-page summary of material if you just need a quick refresher. Longer notes: notes (generally 3-10 pages) if you need more of an in-depth explanation. How Should You Use This Article During the School Year? If there are any subjects that you feel youdon'tcompletely understand after learning them in class, use these notes to review them and fill any knowledge gaps. You should also use these notes to regulary review past topics you covered in class to be sure you don't forget earlier topics and have to cram right before the exam. To score well on the IB Economics exam, you should be studying and reviewing the topics you cover in class throughout the year. This will help you cement this information in your mind so you're not struggling for answers on test days. In addition to these notes, you should also take several practice tests. This will help you test your knowledge and get a better idea of how well you'll score on test day.FindIB Economics HL and IB Economics SL past papers, Free and Official, in our other article. Common Study Mistakes for IB Economics SL/HL It's important to avoid falling behind in IB Economics SL/HL; there's just too much material to learn easily if you get significantly behind. You need to master the topics during the school year to ace your IB Economics papers. Some common mistakes are: Avoiding topics you don’t understand in class. If you didn’t learn it in class, you need to look for help elsewhere whether through this IB Economics study guide or tutoring. Waiting to study until a week or two before the papers. There are a lot of concepts to master. A week or two is not enough time to learn them all (that is why IB Economics is taught over 1 to 2 years). Learn the topics as you’re supposed to learn them in class. Use this study guide if you need extra help. Want to get better grades and test scores? We can help. PrepScholar Tutors is the world's best tutoring service. We combine world-class expert tutors with our proprietary teaching techniques. Our students have gotten A's on thousands of classes, perfect 5's on AP tests, and ludicrously high SAT Subject Test scores. Whether you need help with science, math, English, social science, or more, we've got you covered. Get better grades today with PrepScholar Tutors. Section 1: Microeconomics Longer notes: Basic Definitions Longer notes: PPF and PPC Longer notes: Free Market vs. Planned Economy 1.1 Competitive markets: demand and supply (some topics HL only) Quick reference: Markets Longer notes: Markets Quick reference: Demand Quick reference: Supply Quick reference: Market equilibrium Quick reference: The role of the price mechanism Quick reference: Market efficiency 1.2 Elasticity Longer notes: Elasticities Quick reference: Price elasticity of demand (PED) Quick reference: Cross price elasticity of demand (XED) Quick reference: Income elasticity of demand (YED) Quick reference: Price elasticity of supply (PES) 1.3 Government intervention (some topics HL extension, plus one topic HL only) Quick reference: Indirect taxes Quick reference: Subsidies Quick reference: Price controls 1.4 Market failure (some topics HL only) Longer notes: Market Failure Quick reference: The meaning of market failure Quick reference: Types of market failure 1.5 Theory of the firm and market structures (HL only) Longer notes: Theory of the Firm (HL) Section 2: Macroeconomics Longer notes: Measuring National Income Longer notes: Introduction to Development Longer notes: Unemployment and Inflation Longer notes: Distribution of Income 2.1 The level of overall economic activity (one topic HL extension) 2.2 Aggregate demand and aggregate supply (one topic HL only) 2.3 Macroeconomic objectives (some topics HL extension, plus one topic HL only) Longer notes: Macroeconomic Models 2.4 Fiscal policy 2.5 Monetary policy 2.6 Supply-side policies Quick reference: Evaluation of supply-side policies Longer notes: Demand-side and Supply-side policies Section 3: International Economics 3.1 International trade (one topic HL extension, plus one topic HL only) Longer notes: Reasons for trade Longer notes: Free trade and protectionism Longer notes: World Trade Organization (WTO) 3.2 Exchange rates (some topics HL extension) Longer notes: Exchange rates 3.3 The balance of payments (one topic HL extension, plus some topics HL only) Longer notes: Balance of payments Longer notes: Balance of Payment problems 3.4 Economic integration (one topic HL extension) Longer notes: Economic integration 3.5 Terms of trade (HL only) Longer notes: Terms of trade Section 4: Development Economics 4.1 Economic development 4.2 Measuring development 4.3 The role of domestic factors 4.4 The role of international trade (one topic HL extension) 4.5 The role of foreign direct investment (FDI) 4.6 The roles of foreign aid and multilateral development assistance 4.7 The role of international debt 4.8 The balance between markets and intervention Longer notes: Sources of Economic Growth and/or Development Longer notes: Consequences of Growth Longer notes: Barriers to Economic Growth Longer notes: Growth and Development Strategies Longer notes: Evaluation of Growth and Development Strategies What’s Next? Learn more about IB Economics: Want some more IB Economics study materials?Check out our guide to every IB Economics past paper available, including free and official papers. Looking for more info on what IB Economics covers?Read our complete guide to the IB Economics syllabus to learn every topic that will be covered in the course. Wondering which other IB classes you can take?Take a look at the complete list of IB courses to see what your options are. Want to improve your SAT score by 160 points or your ACT score by 4 points?We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now: