Sarbanes Oxley Act and the PCAOB Essay - 1661 Words

The Sarbanes-Oxley Act Overview: The development of the Sarbanes-Oxley Act (SOX) was a result of public company scandals. The Enron and Worldcom scandals, for example, helped investor confidence in entities traded on the public markets weaken during 2001 and 2002. Congress was quick to respond to the political crisis and enacted the Sarbanes-Oxley Act of 2002, which was signed into law by President Bush on July 30 (Edward Jones, 1), to restore investor confidence. In reference to SOX, penalties would be issued to non-ethical or non-law-abiding public companies and their executives, directors, auditors, attorneys, and securities analysts (1). SOX significantly transformed the procedures in which public companies handle internal†¦show more content†¦Title I: Public Company Accounting Oversight Board: The PCAOB gives a new meaning to the public accounting industry. The board must be composed of five members, appointed for a 5-year term, two of which are Certified Public Accountants (CPAs) or have previou sly been CPAs, and three of which have never been CPAs. The chair of the PCAOB may be a CPA, but only if he has been out of practice for at least five years. The members must be independent of the accounting profession as no member may, concurrent with service on the board, share in any of the profits of, or receive payments from, a public accounting firm, other than fixed payment such as retirement payments (4). All members of the PCAOB must be appointed by the Securities and Exchange Commission (SEC). The board performs various jobs which include: oversee the audit of public companies, establish audit report standards and rules, inspect, investigate and enforce compliance on the part of registered public accounting firms and those associated with the firms (4). Not only do public accounting firms who audit the financial reports of public companies have to register with the PCAOB, but foreign public accounting firms must register as well. The standards of auditing include: A seven-year retention period for audits work papers, second partner review and approval, evaluation of whether internal control structure and procedures include records that accurately reflect transactions and dispositions ofShow MoreRelatedThe Implications of the Sarbanes Oxley Act on the Accounting Profession755 Words   |  4 PagesThe Implications of the Sarbanes Oxley Act on the Accounting Profession Abstract On July 30, 2002, the Sarbanes Oxley Act (also known as SOX) was signed into law by President George W. Bush. The Sarbanes Oxley Act of 2002 is a federal law that set new or improved standards for all U.S. public company boards, management and public accounting firms. Covered in the eleven titles are additional corporate board responsibilities, auditing requirements and criminal penalties. ThisRead MoreA Description of Auditing857 Words   |  4 Pagesfollowed by auditors. The Generally Accepted Auditing Standards apply to financial, operational, and compliance audits. Auditing public traded companies has been effected by the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board. Auditors have additional responsibilities because of the act and the PCAOB. Elements of GAAS The three elements of the Generally Accepted Auditing Standards are the general standards, standards field of work, and the standards of reporting. TheRead MoreThe Sarbanes Oxley Act Of 20021015 Words   |  5 PagesThe Sarbanes-Oxley Act of 2002, also known as the SOX Act, is enacted on July 30, 2002 by Congress as a result of some major accounting frauds such as Enron and WorldCom. The main objective of this act is to recover the investors’ trust in the stock market, and to prevent and detect corporate accounting fraud. I will discuss the background of Sarbanes-Oxley Act, and why it became necessary in the first section of this paper. The second section will be the act’s regulations for the management, externalRead More Public Company Accounting Oversight Board (PCAOB) - Will it Protect Investors?1109 Words   |  5 PagesWill it Protect Investors?   Ã‚  Ã‚  Ã‚  Ã‚  The Public Company Accounting Oversight Board (PCAOB) was created by Sarbanes-Oxley Act of 2002. This board was created to oversee the audit of public companies, subject to the securities laws, in order to protect the interests of investors (15 USC 7201, 2002). It was created in wake of the recent financial scandals of Enron, WorldCom, and Global Crossing to name a few. This â€Å"Act† established by Congress is to create an oversight board, so that such scandals willRead MoreEssay on Acc 564 Assignment 11054 Words   |  5 PagesAuditing I | Sarbanes Oxley Act | Assignment 1 | | Rachael Lantz | 8/15/2012 | | Since the financial crisis investors have become less confident in the companies within the market. In order to restore confidence within the market and the audits of their financial statements Senator Sarbanes and Representative Oxley created the legislation known as the Sarbanes Oxley Act which came into effect in 2002. The legislation created major regulations on company financial reporting andRead MoreSarbanes Oxley Act Of 20021635 Words   |  7 Pagesregulation named Sarbanes-Oxley Act of 2002 , also called â€Å"Public Company Accounting Reform and investor Protection Act† The main purpose of the act is to protect shareholders and general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures. (Mike Oxley 2002). Sarbanes-Oxley Act of 2002 is deemed to be one of the most virtual governance reforms and corporate disclosure in the United States history. This act made it possibleRead MorePublic Company Accounting Oversight Board; Will It Protect Investors?1157 Words   |  5 PagesBoard; Will it Protect Investors? The Public Company Accounting Oversight Board (PCAOB) was created by Sarbanes-Oxley Act of 2002. This board was created to oversee the audit of public companies, subject to the securities laws, in order to protect the interests of investors (15 USC 7201, 2002). It was created in wake of the recent financial scandals of Enron, WorldCom, and Global Crossing to name a few. This Act established by Congress is to create an oversight board, so that such scandals willRead MoreFree Enterprise Fund Vs. Public Company Accounting Oversight Board700 Words   |  3 PagesAccounting Oversight Board or also known as the PCAOB. They was disputing the fact that the President as no control over the board member since they are not appointed government officials and are not limited by government limitations. They are in fact in control over by the SEC, which stands for the securities and exchange commissions. 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The PCAOB is a private-sector, non-profit corporation. It was established to protect the interests of investors and further the public interests in the preparation of informative, fair, and independent audit reports. (The PCAOB) Although the PCAOB is a private sector organization, it has many government-like regulatory functions. The PCAOB

Aacounting Example

Essays on Aacounting Assignment Accounting Working capital Working capital= current assets- current liabilities 2005 2006 Current assets 623981 672529 Current liabilities (509770) (418383) Working capital 114211 254146 Current ratio Current ratio= current assets / current liabilities 2005 2006 Current assets 623981 672529 Current liabilities 509770 418383 Current assets/ current liabilities 623981/509770 672529/418383 Current ratio 1.224 1.6074 Acid test ratio Acid test= Current assets- inventory/ current liabilities 2005 2006 Current assets less inventory 623981-203727=420254 672529-174848= 497681 current liabilities 509770 418383 Current assets- inventory/ current liabilities 420254/509770 497681/418383 Acid test ratio 0.8244 1.1895 Return on equity ROE= Net income/ shareholders equity 2005 2006 Net income 203828 136351 Shareholders’ equity 1404143 1365676 Net income/ shareholders equity 136351/1404143 203828/1365676 ROE 9.7% 14.93% Return on investment ROI= (gain from investment-cost of investment)/ cost of investment 2005 2006 Gain from investment 9623 20736 Cost of investment 99964 99964 (gain –cost)/cost 9623/99964 20736/99964 ROI 0.096 0.2074 Margin Gross profit margin= gross profit/ revenue 2005 2006 Gross profit 1649105 1959642 Revenue 5607376 4701289 Gross profit/ revenue 1649105/5607376 1959642/4701289 margin 0.2941 0.0416 Turnover Asset turnover= revenue/ assets 2005 2006 Revenue 5607376 4701289 Assets 1889296 2042996 Revenue/ assets 5607376/1889296 4701289/2042996 Turnover 2.97 2.30 Analysis Working capital The working capital of a company is equivalent to the current assets less the current liabilities of a company. The ratio issued to show the short term worth of a business. The preferable working capital should be positive so as to ensure that the assets are greater than the liabilities. From the analysis of the working capital, one can make a conclusion that the company is doing well because the working capital position of the company has improved from the 2005 to 2006. Current ratio The current ratio is a measure that is used to show the ability of a company to clear its short term debts by the use of current assets. The preferred current ratio is usually 2:1 or 1.5: 1 depending on the industry that the company is found. The company is improving in performance and that shows that the company will be able to cater for its short term obligations. However, in comparison with the industry’s average, the company is performing the average. That means that the company has potential that it can exploit so as to be in the same level as the industry players and that would contribute to the success of the company because more investors would be attracted. Acid test ratio The acid test ratio is used to show the ability of a company to clear its short term debts with the use of current assets but excluding inventory. Inventory may at times not be liquid and that means that it cannot be f much help in a short duration of necessity. The ratios also signify the ability of the company to cater for its short term obligation using current assts. The acid test ratio for the company is also not within the industry’s average. However, the company has made significant progress and that implies that if the trend continues, the company will be able to match the industry’s average. Return on equity The return on equity is the rate at which the company is able to utilize the shareholders funds. The rate should be favorable so as to ensure that the company shareholders get a reason to always do business with the company. It shows the amount of net income that is usually returned as a percentage of the equity contributed by shareholders. The ratio is useful in the measurements of the profitability of a company because it reveals the amount of profit that is generated by a company from the money invested by the shareholders. The return on equity for the company is way below the industry’s average. Although the performance of the company is improving, much more has to be done so as to attain confidence from investors. Return on investment The ratio is used as a measure for performance and it is usually useful in the measurement of efficiency for any investment. It is also useful in the comparison of efficiency for investments in the calculation of ROI. Benefit that is gained from investing is usually divided by costs that were incurred in investing. The return on investment for the year 2005 is below the industry’s average. However, in the year 2006, the company was able to outdo the industry’s average and that is an indicator that it was able to maximize on its strong points. Margin It’s a financial metric that is useful in the assessment of the financial health of a company in proportion to the money that has been used from revenue of the company. The margin for the year 2005 was favorable; however, in the year 2006, the efficiency of the company may have reduced because the margin ratio also declined. Turnover The ratio shows the sales of the company that are generated from the money that is invested in assets. The turnover for the company is not badly off although more should be done so as to ensure that all things are carried out as they should. From the analysis, whole foods company is a good company to invest in especially if the investor has long term goal orientation because the company ahs the probability of improving on its financials in the future (Furlan, 89). Work cited Furlan, M. Market research. New York; Mac Graw, 1999. Print.

What Is a Permanent Establishment Free Essays

The concept of permanent establishment (PE) in tax jurisdiction is changing as a result of digital innovations in international business. For a country like Nigeria, permanent establishment allows the country to tax the income or profit of foreign companies with a fixed place or physical presence in the country for 183 days or 12 months. But digital businesses do not need a fixed place or maintain a physical presence in the country before they can make a profit. We will write a custom essay sample on What Is a Permanent Establishment? or any similar topic only for you Order Now They do not necessarily need to have an office, a factory, or a workshop in Nigeria before generating a stable income from the country. Examples of digital businesses that make income from Nigeria include GoDaddy.Com, Amazon.Com, Ebay.Com, etc. These companies do not have a fixed place of operation in Nigeria but generate income through digital presence in the country. This puts to test the concept of a permanent establishment in Nigerian tax jurisdiction. To understand the nature of permanent establishment in a digital economy, there is a need to investigate taxation jurisdiction on digital business from the angle of a developing country such as Nigeria. This study will be guided by the following objectives: Examine the principle of permanent establishment as expounded in the United Nations (UN) and Organisation for Economic Co-operation and Development (OECD) Model; Discuss the impact of digital business on the concept of a permanent establishment? Explore the possibility for a source state, such as Nigeria, to tax incomes generated by web platforms (i.e. Google or Facebook); Identify and discuss the challenges faced by the Nigerian government in getting taxes from companies who operate in the digital economy; Use the new definition of a permanent establishment in Italy to analyze tax jurisdiction on digital business in Nigeria. This study will adopt qualitative research method of legal research, analyze the concept of permanent establishment as a framework for tax jurisdiction on digital business in Nigeria. Primary documents such as the Nigerian tax laws (including the Avoidance of Double Taxation Agreement), the Italian tax laws (Conventions to Avoid Double Taxation), the UN Model Double Taxation Convention, the OECD Model and other documents that are relevant will be explored in the study. Secondary source materials covering monographs, journal articles, magazines, books, movies, textbooks, long essays, dissertations, and theses will equally be explored to analyze tax jurisdiction in digital business in Nigeria. Content analysis will be used to study legal decisions relating to the permanent establishment and digital business in Nigeria. How to cite What Is a Permanent Establishment?, Papers

Introduction to Sociology Research Essay Example For Students

Introduction to Sociology Research: Essay Marxism Define this perspective and outline in detail its goals, methods, fundamental concepts, and principle contributors. Evaluate the usefulness of this perspective in understanding social life and social interaction. Issues to consider could include: famous and controversial theories; the problem of social order; class, gender, ethnicity, media or religion Amber Gallagher Teacher: Conor Bendle Word count: 1,216 Due: Tuesday, 16th March 2004 No thinker in the 19th Century has had such a direct, deliberate and powerful influence upon mankind as Karl Marx, and now his concept of Marxism is a major perspective in modern sociology. Karl Marxs revolutionary philosophies lead to the practice of socialism and communism, then ultimately the overthrow of an entire capitalist society and the state institutions that had brought it into being, through the Communist Revolutions in Eastern Europe and China during the last century. The main concepts that create the theory of Marxism are: a criticism of capitalism, a classless society and classical political economics. Karl Marxs famous theories to help define Marxism include: dialectical materialism, the law of development and the mode of production. Within his lifetime, a new revolutionary practice was formed, and Marxs name would be forever associated with that practice (Kreis, 2003). The German-born Karl Marx was a philosopher, social scientist, historian and revolutionary, and possibly the most influential socialist thinker to emerge from the nineteenth century (Kreis, 2003). He completed the greater part of his work between 1844 and 1883, during periods of democratic nationalism, trade unionism and revolution. He had an acute sense of injustice and was repelled by the rhetoric of the intellectuals, who were remote from reality, and the self-righteous contentment of the bourgeoisie, as he found they were hypocritical and blinded by their wealth and status (Kreis, 2003). Fredrich Engels was essentially a social philosopher, and was the co- founder of the modern communist theory with Karl Marx. In 1847 Engels and Marx began writing a pamphlet based on Engels The Principles of Communism. The 12,000-word pamphlet was finished in six weeks, written in such a manner as to make communist theory understandable to a wide audience. It was named The Communist Manifesto and was published in February 1848. After Marxs death in 1883 Engels devoted the rest of his life to editing and translating Marxs writings. Marxism can sometimes be defined as the theory of dialectical materialism based on communist practice. Dialectical Materialism is a way of understanding reality; whether thoughts, emotions, or the material world. The materialist dialectic is the theoretical foundation of Marxism, while being communist is the practice of Marxism (Marxists.org, 2003), where communists actively support the interests of the working class and live to unite workers regardless of gender, nationality, race or ideology (Perry, 2002). Dialectics in Marx referred to opposing forces in reality: internal and inherent forces whose mutual conflicts produce metamorphoses. Men are products of their environment in general and their economic environment in particular (Sowell, 1985). This dialectical idea of self-destruction through self-fulfillment is predominantly stating that the culture destroys itself by perfecting itself (Wolton, 1996). Marx distinguished five broad stages in the formation of a bourgeois society. He named these Modes of Production. In Marxs writings the five major historical modes of production are: primitive communism, the ancient mode of production, Asiatic mode of production, feudism and capitalism (Evans, 1993; Perry, 2002). Social development from the lowest stage to the highest was marked by increases in human powers of production, the elaboration of the division of labour, and the rise of the institution of private property. The contradictions within the highest existing stage (i.e.: a bourgeois society) would lead to its replacement by a still higher stage: communism (Evans, 1993). .u480d439353dfbb037f68a1570724aa47 , .u480d439353dfbb037f68a1570724aa47 .postImageUrl , .u480d439353dfbb037f68a1570724aa47 .centered-text-area { min-height: 80px; position: relative; } .u480d439353dfbb037f68a1570724aa47 , .u480d439353dfbb037f68a1570724aa47:hover , .u480d439353dfbb037f68a1570724aa47:visited , .u480d439353dfbb037f68a1570724aa47:active { border:0!important; } .u480d439353dfbb037f68a1570724aa47 .clearfix:after { content: ""; display: table; clear: both; } .u480d439353dfbb037f68a1570724aa47 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u480d439353dfbb037f68a1570724aa47:active , .u480d439353dfbb037f68a1570724aa47:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u480d439353dfbb037f68a1570724aa47 .centered-text-area { width: 100%; position: relative ; } .u480d439353dfbb037f68a1570724aa47 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u480d439353dfbb037f68a1570724aa47 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u480d439353dfbb037f68a1570724aa47 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u480d439353dfbb037f68a1570724aa47:hover .ctaButton { background-color: #34495E!important; } .u480d439353dfbb037f68a1570724aa47 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u480d439353dfbb037f68a1570724aa47 .u480d439353dfbb037f68a1570724aa47-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u480d439353dfbb037f68a1570724aa47:after { content: ""; display: block; clear: both; } READ: Human Genome Project 2 Essay Socialism and communism were conceived as future modes of production that would liberate humanity from exploitation and oppression, using the general increase in the productive forces for the general good. Marx and Engel maintained that this mode of production opened a new possibility of a classless society: socialism. They devoted their lifes work to the achievement of this goal (Perry, 2002). In modern capitalism, large capitalist employers exploit workers by not paying them the full worth of their labour. Marx considered that the progression of capitalism, each technical advance and each accretion of productivity, was bought at the price of the exploitation and suffering of workers (Evans, 1993). In his theory on the capitalist system, Marx referrers to the de-humanisation of the worker, with the implication that this system of production denies them something that is their due as human beings. He argued that capitalism had either destroyed morality .