33:010:272 Chapter Notes - Chapter 1: International Accounting Standards Board, Financial Accounting Standards Board, International Financial Reporting Standards
99 views4 pages
14 Sep 2016
School
Department
Course
Professor
Document Summary
Internal users people in the company who plan, organize, and run the business. Ex) managers: external users individuals and organizations outside a company who want financial information about the company. Recognize an ethical situation and the ethical issues involved. Identify and analyze the principal elements in the situation. Identify the alternatives and weigh the impact of each alternative on various stakeholders: gaap (generally accepted accounting principles) indicates how to report economic events. Financial accounting standards board (fasb) is the primary accounting standard- setting body in the us. Securities and exchange commission (sec) - governmental agency that oversees us financial markets and accounting standard-setting bodies. International accounting standards board (iasb) - an accounting standard-setting body that issues standards adopted by many countries outside of the us. International financial reporting standards (ifrs) international accounting standards set by the iasb. International notes highlight differences between the international and us accounting differences.
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related Documents
Related Questions
Required: After reading the Bye, Bye SOX? Article comment on the issue of small business compliance with Section 404 of SOX
Bye, Bye, SOX? | |
The Sarbanes-Oxley Act (SOX) | SOX compliance has been extended |
may be declawed by upcoming | four times, but they wonât need to |
U.S. Congress and | comply at all if the Garrett-Adler |
Supreme Court decisions. | amendment makes it to the Senate |
The House of Representatives | floor as a standalone bill. |
recently voted to approve the | SOX also established the |
Garrett-Adler amendment, which | PCAOB to oversee and regulate |
would exempt small companies | audit firms. PCAOB operates under |
from SOX Section 404 provisions, | the supervision of the Securities |
while the Supreme Court is considering | and Exchange Commission (SEC), |
the constitutionality of the | which also appoints PCAOB members. |
Public Company Accounting Oversight | It is funded by fees charged to |
Board (PCAOB). | audited firms. When it was established, |
These developments may have | Congress wanted the board |
long-term implications for SOX, the | to be separate, with its own funding |
2002 legislation passed in the wake | stream, and outside normal civil |
of the Enron, WorldCom, and Tyco | service laws so it could attract |
scandals. The outcomes may also | highly qualified specialists. PCAOB |
have implications for records managers, | membersâ salaries are more than |
information technology specialists, | $500,000 and are reviewed by the |
and compliance officers | SEC. |
who devise and implement company | Pro-business advocates, represented |
controls. | by the Free Enterprise |
Section 404 of SOX requires | Fund, argue that the PCAOBâs governance |
company auditors to attest to the | structure is unconstitutional |
soundness of the firmâs internal | because it is an independent |
controls and financial statements. | agency that does not allow for the |
Internal controls may include anything | president to appoint members. Additionally, |
from transaction approval authorizations | because only the president |
to records retention | can remove SEC commissioners |
programs. This provision is widely | for cause, and because |
blamed for an increase in auditorsâ | the SEC can only remove PCAOB |
fees, as well as increased expenditures | members for cause, some court |
to ensure that proper internal | members believe this is a formerly |
controls are in place. | unrecognized limit of the presidentâs |
Small firms â those with | powers that may contradict |
less than $75 million in | the constitution. |
market capitalization | The Supreme Court will take up |
â have protested that | the issue soon, and some legal experts |
compliance with SOX 404 would | believe that SOX could be |
cost them a disproportionate share | abolished completely if the court |
of their earnings. The complaint is | rules the PCAOB unconstitutional. |
supported by an independent study | |
conducted at Pennsylvania State | |
University, which showed that | |
firms just over the $75 million | |
mark paid nearly $700,000 more in | |
audit fees and had average earnings | |
of negative $1.4 million in 2004 |