improper accounting for loading discounts‚ shipping to the yard‚ and guaranteed sales. The plaintiffs in the class-action lawsuit filed against Campbell Soup Company and its top executives eventually added Pricewaterhouse (PwC)‚ Campbell’s independent auditor‚ as a defendant in the case. To allow a lawsuit filed under the 1934 Security Act to proceed against a defendant‚ a federal judge must find that the plaintiffs have alleged or “pleaded” facts “to support a strong inference of scienter” on the
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in strengthening the independence rules for auditors We discuss these situations in two parts. Part I On January 6‚ 2000‚ the SEC made public the report by independent consultant Jess Fardella‚ who was appointed by the commission in March 1999 to conduct a review of possible independence rule violations by PwC arising from ownership of client-issued securities. The report found significant violations of the firm’s‚ the profession’s‚ and the SEC’s auditor independence rules. Background On January 14
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Academy of Management Review 2006‚ Vol. 31‚ No. 1‚ 10–29. CONFLICTS OF INTEREST AND THE CASE OF AUDITOR INDEPENDENCE: MORAL SEDUCTION AND STRATEGIC ISSUE CYCLING DON A. MOORE Carnegie Mellon University PHILIP E. TETLOCK University of California‚ Berkeley LLOYD TANLU MAX H. BAZERMAN Harvard University A series of financial scandals revealed a key weakness in the American business model: the failure of the U.S. auditing system to deliver true independence. We offer a two-tiered analysis of what went
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Factors such as mentioned an have greatly affected employees in maintaining work life balance d brought challenges to both employees and employers. The current study identifies the factors that could affect employees’ work life balance in one of the Big Four accounting firms – Deloitte Macau. Both questionnaire surveys (n=31) and interviews (across two management level) have been conducted and reveal convergent outcomes. Recommendations have been provided to further improve the work-life balance in Deloitte
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affirm the fact that they don’t know of any fraud being committed by the company. The GAO (Government Accounting Office) implemented laws revolving around four major areas corporate governance‚ independent audit of financial statements‚ oversight of the accounting profession‚ and accounting and financial reporting issues. The AICPA requires auditors to document all decisions or judgments that are of a significant degree. SAS outlines what
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Written and Produced by Hedrick Smith & Marc Shaffer Directed by Marc Shaffer Correspondent Hedrick Smith ANNOUNCER: It was a meteoric rise. VOICE: We will become the world’s leading company. ANNOUNCER: And a devastating collapse. VOICE: Enron is a corporate Chernobyl. VOICE: You had the entire system playing fast and loose. VOICE: It is not just Enron‚ it’s an industry problem. LYNN TURNER‚ SEC Chief Accountant (1998-2001): It is real‚ real damage to the country. ANNOUNCER: Why didn’t anyone sound
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subsection will present the facts. 1.1 ARTHUR ANDERSEN Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clerence DeLeny. Over a span or nearly 90 years‚ the Chicago accounting would became known as one of the “Big Five” largest accounting firms in the United States together with Deloitte & Touche‚ PricewaterhouseCoopers‚ Ernst & Young‚ and KPMG. For most of those years‚ the firm’s name was synonymous with trust‚ integrity‚ and ethics. In its earlier days
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The Auditing Process INTRODUCTION Auditing is defined by the American Accounting Association or AAA as “a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users” (cited in Turney et al p. 108). From that definition‚ it is evident that the auditing process consists of three elements: evidence
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thrid parties via fictitious insurance restoration project. Difficulties in developing carpet cleaning industry made Barry Minkow think to get money in wrong way. Collaborate with Tom Padgett and also extensive social network‚ made this big scheme to deceive big investors became easy. After success in cheating investors‚ Barry Minkow think bigger to make more money. He think to make ZZZ Best Company go public. For company which want to go public‚ it must fulfill many requirements of SEC
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to join the firm and helps to enhance firm’s performance. Junior staff being given opportunity to learn As compared to junior staff status in Big 4 firms‚ junior staff in small and medium sized audit firms are being given more responsibilities and chances to take part in the overall audit process. This is because majority of the clientele of Big 4 are big multinational corporations and public listed companies with complex operations‚ junior staff might not be able to perform adequate audit procedures
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