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 Strayer Library 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.Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting
requirements:
·
Be typed, double spaced, using Times New Roman font
(size 12), with one-inch margins on all sides; citations and references must
follow APA or school-specific format. Check with your professor for any
additional instructions.
·
Include a cover page containing the title of the
assignment, the student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in the required
assignment page length.
