Essays on Aicpa

Cardillo Travel Systems

The Cardillo Travel Systems case shows the way the management cooked up the books only to be caught later. This essay will attempt to answer some questions on this case. False Representation to External Auditors: The executives at Cardillo Travel Systems were aware it needed to maintain a minimum of $3 million of stockholder’s equity threshold established by the court outstanding against the organization. (Ritterburg, 2012). This was the reason that shaped their intent to falsify the organization’s books to misrepresent facts before investors and creditors. The issue started with the accountants at Cardillo making an improper ...

Introduction

Accounting is loosely defined as the action of keeping accounts that are financial in nature. Careers in accounting are numerous. They include auditors, accountants, Bookkeepers and Management Trainees. Auditors are people with extensive knowledge in accounting. They are tasked with examining and analyzing the financial records of companies. Auditors are individuals who ensure that financial records are accurate and that remittance of taxes is done accordingly and in time. They are people who calculate the taxes that companies owe the Revenue Authorities. The auditors are individuals who suggest ways and mechanism of cost reduction and organize the financial records ...

An Overview of the Standard-Setting Industry And Its History

Introduction Accounting Standards have been in existence since the beginning of the recorded history. Some of these standards were set up by rulers or reigning kings. However, as the world developed, States started coming up with bodies aimed at controlling the quality and standards of products and services in the accounting sector. In the ancient world, the man used to come up with standards with a desire of harmonizing his activities with important changes in the environment. Some standards were also set in response to a rise in needs in the society. The standard setting body in America was ...

Abstract

The Madoff Securities scandal was one of the biggest Ponzi schemes to hit America. This essay would examine the Madoff scandal from an audit perspective since it was the complacency (or collusion) of the auditors that encouraged the perpetrator of this scam. While the scam that was pulled by Bernie Madoff, was both large and difficult to spot, its detection also helped expose a crucial flaw that existed in corporate America at the time. This was the lack of regulatory oversight in the Securities business. While one could lay the blame for this scandal on the Regulator, another important ...

Introduction

There is a requirement to guide the students choosing the accounting subjects what is the scope of this subject. How can they pursue their career of this subject? Once they are clear about the career options it will help them to opt right path.

Following are two career options for accounting students as future professionals:

Certified Public Accountant The students who choose a career in the public accounting must focus on auditing and tax functions. A Certified Public Accountant is a qualified and licensed accountant who can undertake the tasks related to auditing of financial statements and certifying various business documents . CPA is highly paid as well as a well-respected ...

The Accounting field is a rather vast field that in recent time has been noted to employ quite some people. The field is deemed to be a very famous and prestigious one given the number of students that end up taking accounting classes plus the number of graduates that are churned out from the institutions of higher learning every given year. The growth rate of the field is encouraging, on a brighter note. The diversification in the multiple career options available for the field of accounting provides the basis of discussion for this paper starting off with examples of ...

Question One: SEC’s Rationale to Charge Cardillo Executive

Making False Representation to External Auditor The executives of Cardillo intended to give false financial information to lure investors and creditors. They intended to get at least $3 million thresholds that were established by the court. As a result, the executives made inappropriate adjusting entry, which gave the SEC the reason to charge them. They lied to the external auditors that the $203, 000 that was received from United Airlines was income to the company, which was not the case (Ritteberg, 2012). In the real sense, the money that was paid by the United Airlines was supposed to be ...

Career options in accounting

Accountants have various career paths that they can choose. The main options are public, industry and government accounting. In public accounting, the CPAs work for various firms ranging from small and local firms to large and international corporations. In the firms, the accountants work in areas such as tax, audit and management consulting. In industry and business, the accountants work for varied size firms in areas including, financial analysis, management accounting, financial accounting as well as reporting. With that, the accountants can offer services in specialized fields such as business valuation, financial forensics, IT consulting and financial planning. Also, ...

Q1. Accounting standards play a significant role in the financial statements preparation process. The main international standard-setting organization is the International Accounting Standards Board (IASB) headquartered in London. It issues International Financial Reporting Standards (IFRS) which are used in more than 115 countries and is gaining acceptance in other states as well. These standards are also used on most foreign exchanges. Moreover, the IASB also issues framework for financial reporting and international financial reporting interpretations. Besides, the International Organization of Securities Commissions (IOSCO) also plays a significant role in the international standard-setting process. It doesn’t develop accounting standards, ...

Over the last two decades, corporate social responsibility has gained deep interest from accountants and auditors. It happens because substantial amounts of financial resources are invested in corporate social responsibility; yet there are not explicit accounting policies and standards to report on corporate social responsibility financials and activities (The Institute of Internal Auditors, 2016). Owing to this, there has been varied views and discourses on the conduct of corporate social reporting with many commentators focusing majorly on the triple bottom line reporting as a prelude to corporate social reporting. The current paper presents a detailed review of the ongoing ...