The Liability Of An Accountant - 1235 Words

THE LIABILITY OF AN ACCOUNTANT Recently, the question of liability has become more prevalent in the practice of public accounting. The AICPA (American Institute of CPAs) has been lobbying for liability reform in cases involving negligence or fraud committed by public accountants. So, being an accounting major myself, I wanted to write about the ongoing fight involving liability reform in public accounting. Contrary to some belief, accounting is not a â€Å"cakewalk† career. Accountants do not sit at a desk one-hundred percent of the time crunching numbers that always add up perfectly. In fact, accounting fraud is one of the largest scandals found today. When an accountant enters an engagement with a client, who are they liable to? Certainly not†¦show more content†¦If the accountant makes a false statement of fact, either knows the truth or recklessly disregards it, or if the client justifiably relies on the statement, the accountant would be liable for fraud. Accountants assume a large responsibility to their clients. They enter a contractual agreement, known as an engagement letter, and use engagement letters to minimize the risk they assume under the contract. Many engagement letters include memos limiting the recovery. Accountants expressly agree to do a project by a specific date, and imply that the work will be completed carefully. Like I said before, if an accountant breaches the contract, they can be found liable for damages. Another liability that I didn’t really mention was the trust that the clients give to their accountants. They are liable to keep the information confidential and to use it only for the client’s benefit. It is the accountant’s responsibility to be diligent with not only confidential client information, but also providing services with care, thoroughly, and to follow the ethical and technical standards provided to them by the GAAP (Generally Accepted Accounting Principles) and the AICPA. I n a case of Mattco Forge v. Arthur Young, there was a serious question of an accountant’s liability to client. In the 1980s, Mattco Forge began a lawsuit against General Electric, claiming discrimination against the company while they awarded GE contracts.Show MoreRelatedCurrent And Long Term Liabilities1504 Words   |  7 Pagesis to make profits, but understanding how to manage both current and long-term liabilities will insure an organizations success. A liability is a debt incurred by a business that must be repaid. There are current liabilities, which need to be repaid within one year and there are long-term liabilities that are repaid over a period of time longer than a year. A business needs money to operate, and by incurring liabilities it gives a business the extra money or assets that are needed to extend the operationalRead MoreAccounting Principles And Standards Of Professional Conduct1282 Words   |  6 PagesAs accountants and auditors, we are held to, and mus t comply with, two standards of professional conduct. Those standards are generally accepted accounting principles (GAAP) and generally accepted auditing standards (GAAS). GAAP enforces the uniform standards for preparing and presenting financial statements. GAAS governs the ways and means are used by public accountants when conducting an audit. GAAS establishes the standards for field work and mandates that sufficient evidence be found to provideRead MoreContingent Liability1011 Words   |  5 Pagescontingent liability A potential liability dependent upon some future event occurring or not occurring. For example, a company is named as a defendant in a $1 million lawsuit. 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GAAS establishes the st andards for field work and mandates that sufficient evidence be found to provideRead MoreAssets, Liability, Owners Equity and the Accounting Concepts1211 Words   |  5 PagesAssets, liabilities and owner’s equity are the three components that make up a company’s balance sheet. The balance sheet, which shows a business’s financial condition at any point, is based on the equation of assets equals to liabilities plus owner’s equity. This equation is also the framework track of money as it flows in and out of a company. Starting with the first penny a company earn, will be recorded in a general ledger each and every transaction using double-entry system of debits and creditsRead MoreA Proposal Of A Business Idea1532 Words   |  7 PagesOperations Cash Spending $90,234 100 000 Bill Payments $78,000 $93,232 Subtotal Spent on Operations $168,234 $93,232 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 Principal Repayment of Current Borrowing $2,340 $2,340 Long-term Liabilities Principal Repayment $0 $3,585 Purchase Other Current Assets $0 $0 Purchase Long-term Assets $0 $2,000 Dividends $0 $0 Subtotal Cash Spent $170,574 $95,572 Net Cash Flow $150,326 $363,758 Projected profit and loss Year 1 Year 2 Assets CurrentRead MoreFinancial Report : The Accounting Principles950 Words   |  4 PagesThe financial report as organized by the accountant is as per the accounting principles. The way the accounts manager wants the accounts to be prepared is against the reporting standards that are used in many nations. In this case, the standards ensure uniformity in the reporting framework and encourage international trade. In this case, this event is a post balance sheet event that has to be adjusted in the current financial year. It is an amount that has to be taxed in the current financial yearRead MoreLaw Professional Negligence1496 Words   |  6 Pagesperson is entitled to damage compensation if there claim is â€Å"part of a contract† obligation. As being an accountant is a professional job all accountants will have to show a degree of care as a professional would do. If an accountant fails to do this they will amount to a breach of duty. To establish the tort of negligence has been committed the claimant will have to prove the accountant owes a duty of care, breach of duty and the damage caused by the breach for the advice given to them. It wasRead MoreCompany Scandals Underpinned By Non Conformity And Accounting Principles1183 Words   |  5 Pagesimportant foundation to allow business owners, shareholders, the government and accountants to understand the financial position of a company. A failure to apply appropriate accounting principles can lead to inaccurate reports being used in business decision making. This may result in inappropriate investment and business decisions and lead to collapses as evidenced by the scandals surrounding One-Tel and Worldcom. Accountants employed by these business have been found to have acted unethically by manipulatingRead MoreSarbanes Oxley : Corporate Responsibility For Financial Reports750 Words   |  3 Pagesguidelines, and criminal punishments in order to prevent future acc ounting scandals on the scale of Enron and Worldcom. Sarbanes-Oxley has profoundly impacted both management and accountants albeit in mostly similar ways. The following exploration will compare and contrast these views held by management and accountants regarding Sarbanes-Oxley. According to Green (2004) Sarbanes-Oxley legislation is comprised of various sections, of which five are the most significant. These sections are Section

The Importance Of The Teacher s Inclusive Education Essay

This essay discusses the importance of the role of the teacher in inclusive education. For several years’ children who suffer with disabilities and learning difficulties where separated and not given the same opportunities. Thankfully changes have been made in the education system and society, showing these children may seem different and may struggle a little more than the average child but they are not stupid and can exceed the expectation for a child of their age. In this essay I will be going through the developments for inclusive education and the improvements that have been made, the need to start inclusion immediately and how inclusion boosts a child’s spiritual, mental, social and cultural values and the impacts this holds on their success. The inclusion a teacher can bring is crucial for the continuation and chances of success for each individual child. All children should be included regardless of ethnicity, ability, religion or any other categorisation. When inclusive education takes place children who have a disability, and those who do not engage together in the classroom and learn as a group. Children should not be categorised by a disability and/or a language barrier, children should be seen as one in order for them to thrive in the real world. Warnock’s report is clear proof of the failure that separating children into categorised schools due to their ability or handicap was wrong. The report continues to say we need to focus on how to provide for eachShow MoreRelatedInclusive Education Is Not A Marginal Issue1502 Words   |  7 Pagesâ€Å"Inclusive education is not a marginal issue, but is central to the achievement of high quality education for all learners and the development of more inclusive societies†. This statement made by UNICEF clearly portrays their view that inclusive education is of upmost importance within our schools. However there is a sense that almost too much weigh has been placed upon this educational approach. â€Å"†¦is central to the achievement of high quality education for all learners†¦Ã¢â‚¬ , at a common sense stand pointRead MoreClassroom Management and Pull-out Services: Research questions and Personal View on the Research Topic1706 Words   |  7 Pagesstudies on classroom management--the importance and influence it has on the everyday, overall functioning of the classroom and techniques and characteristics for effective classroom management, classroom management and its relation to students with special needs--the influence routine and structure have on students with disabilities and developmental delays, and finally pull-out services--what they are and the benefits and drawbacks of implementing them in inclusive educational settings. 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The response to the concerns of parents and educators over the exclusion of children with disabilities created the Individuals with Disabilities Education Act. The public law â€Å"guaranteed a free, appropriate public education to each child with a disability in every state and locality across the country†. In the 1970s children with disabilities enteredRead MoreSpecial Education vs Inclusive Education887 Words   |  4 Pagesparents, teachers and peers of the student (Stainback, Stainback Jackson, 1992). It is also suggested that integration and inclusion is also beneficial to students in areas of learning other than academic, including that of emotional and social development. Wagner is in support of inclusive education, but believes that â€Å"Placement in regular education alone does not ensure success.† (Wagner, 1996). It is important to understand the individual needs of children included in mainstream education, asRead MoreEssay Creating a Thriving Learning Environment931 Words   |  4 Pagesenvironment within an inclusive education setting. There are however numerous ways to do this with both advantages and difficulties in implementing such a curriculum; it seems an overwhelming experience, especially as a new teacher. Foreman (2008) likens the classroom environment to an ecosystem to which there are four interconnecting dynamics; teacher factors, student factors, curriculum and resource factors and physical setting factors. These four factors provide many ways that teachers can set up theRead MoreHandbook Of Leadership And Administration For Special Education992 Words   |  4 Pages Critical Annotation Crockett, J. B., Billingsley, B. S., Boscardin, M. L. (2012). Handbook of Leadership and Administration for Special Education. New York, NY: Routledge. 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According to The Cyclopedic Education Dictionary, inclusion can be defined in two ways: one, inclusion can be defined as the placement of disabled children in a general classroom setting for the entire school day and two, inclusion can be defined as the placement of disabled students into a general classroom setting for part of the day while they are placed in a special setting during the other part of the day (Spafford and Grosser, 1998). Parents and teachers have been debating the issue ofRead MoreInclusion Policy Analysis Of Bundamba State Secondary College Essay1450 Words   |  6 PagesInclusion Policy Analysis of Bundamba State Secondary College Inclusive education provides for the needs of all the children in their communities without questions (Foreman Arthur-Kelly, 2014). While school inclusion policies could meet different levels of students’ needs in all classroom and school environments. In this paper, the strengths and weaknesses of the Bundamba State Secondary College’ s inclusion policy will be discussed in Part A. In Part B recommendations will be developed for the

Summary of Commanding Heights free essay sample

â€Å"[The shift of the pendulum] in idea converged with the experience and learning of the preceding decades. Confidence in market [economy] rather than government [intervention] formed the foundation of the global critique. † The Global Critique 1. The pendulum swung back to the market –Hayek’s award of the Nobel Prize in 1974 shifted intellectual center ( Friedrich von Hayek and â€Å"Battle of Ideas†, the Road to Serfdom, Chicago School amp; Grudging Respect) * Friedrich von Hayek – Hayek believed that Keynesianism would not solve the slump but would institutionalize inflation. He asserted that governments should exist to ensure the development and maintenance of the institutions such as the laws and rules. In his book the Road to Serfdom, he prepared a full-scale view on market-oriented economy in which Margaret Roberts, later named Margaret Thatcher was influenced. * Chicago School (Milton Friedman) – Chicago school, partly driven by Milton Friedman, emphasized free markets and argued against government intervention. We will write a custom essay sample on Summary of Commanding Heights or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They believed markets produce the best outcomes and allocate resources to the utmost. After retirement from teaching, Milton Friedman became an advisor to Ronal Regan and his advisors. Jeffrey Sachs – During the mid-1980s, he was at the center of economic reform around the world. Keynesian-educated Sachs gradually disapproved the ability of governments and came to believe in the competitiveness of the market. 2. Lost confidence in the government control economy –The collapse of the Berlin Wall, what had symbolized between communism and capitalism gave the victory to capitalism A) Falling confidence in industrial world Crisis of confidence (1970 ~ 1980) * From the end of the World War II till oil crises in the 1970s, industrial world enjoyed three decades of prosperity. However, people started to realize the limits of government knowledge and its ability to run a modern economy. Due to poor economic performance and the confusions of government policy, government-led mixed economy lost its confidence. B) Falling confidence in developing world The Debt Crisis and the Lost Decade (1980s) * In the second half of the 1970s, petrodollars from industrial world have given to most to developing countries for loans. However, due to the downturn in the industrial countries, businesses in developing countries became poor. Weakening demand and falling revenues toppled with growing debts and rising interest rates then the great debt crisis of the 1980s had begun. The government of developing countries was going into bankruptcy. Both economic arrangements and the guiding idea derived from development economics had to be changed and fiscal reality moved to the front. C) Falling confidence in state-owned company The national champions (1980s, Italy) * ENI, Italy’s largest and a renowned state-owned company had grown with benefits by the government after WWII. In the 1970s, difficulties in state-owned companies started to rise. The company was malfunctioning, and their success and confidence turned into corruption, inefficiency, reliance on government subsidies, political intervention and inflexibility in innovation. In the end, late in 1995, ENI was privatized. D) Falling confidence in Marxism and Communism Red Star Sinking (1980s) * Marxism and communism which provided the powerful development model through central planning, state intervention, and state ownership finally had to be drawn back. By the 1980s, what seems to be strong in appearance turned out to be strikingly different. The economy in the Soviet Union was in deep crisis and it was no better in Eastern Europe. Meanwhile China rapidly opened the door to the market system and the size of the economy doubled every seven years. E) Failing confidence in government protected sector in Mixed economy New Zealand (1980s and early 1990s) * By the 1980s, the highly regulated and protected state-owned sector was malfunctioning. The uncompetitive economy resulted in falling per capita income, rising debt as a share of GDP and unemployment. Then the labor party took control and started to remove or reduce protection in every sector. 3. Regain confidence in a market economy and the crisis of market’s confidence- development and coalescing of capital markets created a new era. Information and communication revolution integrated the world but tight integration caused market collapse. A) Success of East Asia’s market-oriented economy-Asian Star Rising (1980s) * East Asian countries, that nurtured national champions with industrial policy, encouraged domestic companies to go world market. East Asian economies, considered as market-oriented by world standards, turned out to be successful. B) The Emergence of Emerging Markets amp; Financial Integration * The development of emerging markets was central to economic change around the world. It has accelerated the shift toward reliance on markets and tied world economies together. However, global financial crisis wrecked its way across the world’s emerging markets in the late 1990s. World economy collapsed in a chain reaction and it brought the abrupt loss of confidence in the market.