Business Commons^™

Rules-Based Vs. Principles-Based Accounting Standards: Analyzing The Impact Of Amending Apb No. 18 To A Principles-Based Standard, Jodi E. Ferring

Presidential Scholars Theses (1990 – 2006)

In the above analysis I considered the impact of amending APB No. 18 to a principles-based standard upon implementation, accounting objectives, and management manipulation. The analysis has uncovered both positive and negative aspects to a change in the accounting standards setting process. Implementation would be more costly and require more resources due to applying judgment instead of objective tests. Accounting objectives of comparability and reliability could arguably be improved assuming implementation is accurate. Principles-based accounting standards would not significantly improve consistency. Management structuring of transactions could be decreased assuming accurate implementation. The analysis has discovered that the potential success of …

Sox In The Boardroom: The Impact Of Sarbanes-Oxley 2002 On The Corporate Reporting Of The Fortune Fifty, Angela Boedeker

Presidential Scholars Theses (1990 – 2006)

When I began this research project I believed that I would find some major differences in reporting between the 2001 and 2002 financial reports of major corporations. My research question was, "What was the impact of the Sarbanes-Oxley Act of 2002 on the corporate reporting of the top 50 corporations in America as identified by Fortune magazine." Each year Fortune magazine lists the top 500 public corporations in American with the rankings based upon revenues. The results of the 2001 financial reports of these corporations led to the 2002 listing in the magazine; the results of the 2002 financial reports …

Sarbanes-Oxley: A Compliance Case Study, Rachel Kass

Presidential Scholars Theses (1990 – 2006)

Sarbanes-Oxley is a piece of legislation passed into law on July 30, 2002 (The Sarbanes Oxley Act of 2002 With Analysis, 2002, p. iii). The act was developed to, " .. . to enhance public company governance, responsibility, and disclosure (p. l)." The official name of the act is Public Company Accounting Reform and Investor Protection Act. The name Sarbanes-Oxley comes from the act's co-sponsors: Senator Paul Sarbanes, D-Maryland and Senator Michael Oxley, R-Ohio. (Callaghan, 2004) The legislation adds requirements for publicly held corporations, not private companies, in the United States regarding internal controls and financial reporting. Sarbanes-Oxley, nicknamed SOX, …

A Survey Of The Use And Perceptions Of Analytical Procedures, Rebecca Hutchinson

Presidential Scholars Theses (1990 – 2006)

In order to comply with generally accepted auditing standards (GAAS), auditors are required to gather sufficient, competent evidence to support their opinion concerning the amounts and disclosures in the client's financial statements. Auditors have numerous ways by which to obtain such evidence, and one whose use is continually increasing--largely due to its cost-effectiveness--is analytical procedures.

Analytical procedures (APs) are defined as "evaluations of financial information made by a study of plausible relationships among both financial and non-financial data" (SAS No. 56). For non-auditors, an example of an AP is using historic gross profit percentages to determine if the gross profit …

The Impact Of Computer-Assisted Communication Techniques On The Accounting Profession, Jennifer Ellwanger

Presidential Scholars Theses (1990 – 2006)

Computers have made a tremendous impact on society in the last twenty years. They have affected practically every aspect of life; therefore, it isn't surprising that computers have impacted the accounting profession. The computer has changed the way accountants prepare tax returns and financial statements, and has influenced every other accounting process (Khani and Zarowin, 1995). Computers may also impact the way accountants communicate with clients and their coworkers. This study examines the impact of computer technology on communication in the accounting profession.

Prior research has reported what technologies are available and which ones are being used by accountants. A …

Senior Auditors' Reaction To Premature Sign-Off By A Staff Member, Amy L. Slabaugh

Presidential Scholars Theses (1990 – 2006)

The research presented in this paper is an extension of research completed by Kaplan (1995), who examined senior auditors' reporting intentions upon discovery of premature sign-off of an audit step by a staff member. His research found that audit seniors do not always formally report the discovery of premature sign-off, even though firms have formal policies requiring such reporting (McNair 1991). In Kaplan's (1995) research, an experiment was conducted in which subjects were asked to respond to a hypothetical scenario in which an audit staff member prematurely signed off on a required audit step. His study manipulated two situational variables: …

Having It All - Fact Of Fiction?: The Effects Of Marriage And Motherhood On The Career Patterns And Earnings Of Women Accountants, Holly R. Mahan

Presidential Scholars Theses (1990 – 2006)

This study evaluates the effects of marriage and children on the earnings and career patterns of women accountants. Data was obtained from 116 questionnaires completed by women accountants who were employees of a large public accounting firm. The analysis suggests that neither marriage nor children have an effect on current salary levels while having children appears to have a negative effect on average annual salary growth. Having tenure with the firm and possessing a master's degree are positively related to earnings levels. The data also indicate that more rapid promotions within the firm lead to higher average salary growth rates …

Asset Impairment: A Comparison Of Recognition Criteria, Tanya S. Chapman

Presidential Scholars Theses (1990 – 2006)

In December of 1990, the Financial Accounting Standards Board (FASB) issued a Discussion Memorandum (DM) entitled Accounting for the Impairment of Long-Lived Assets and Identifiable Intangibles. This DM was the direct result of pressure from other accounting bodies. The Accounting Standards Executive Committee (AcSEC) of the AICPA, the Emerging Issues Task Force (EITF) of the FASB, the Financial Accounting Standards Advisory Council (FASAC), the Financial Executives Institute (FEI), and the National Association of Accountants (NAA) all examined the issue of asset impairment prior to the FASB's study of the issue. After several recommendations by the FASAC, the FASB added impairment …

Generally Accepted Accounting Standards: A Standards Overload For Small Business?, Michelle L. Morgan

Presidential Scholars Theses (1990 – 2006)

The purpose of this paper is to explore the issue of the alledged standards overload problem. This exploration can be accomplished by breaking the topic down into several key areas of discussion. To fully comprehend the nature of the problem, it is necessary to have some background on current generally accepted accounting standards (GAAP): what is the nature of current accounting standards and where do they get their authority?; what is the purpose of current accounting standards, and is this purpose served for both smal 1 and/or privately held companies as wel I as for large, public companies? It is …

Computer Crime: The Abuse Of Accounting Information Systems, Darin J. Anderson

Presidential Scholars Theses (1990 – 2006)

This thesis will explore the impact of computer crime on accounting information systems. Specifically, it will address the different types of crimes committed, the types of people who commit them, and the controls to deter them. The paper will then close by focusing on who should take responsibility for detection of such crimes.

An Explanation Of Fasb #96, Michael R. Armbrecht

Presidential Scholars Theses (1990 – 2006)

Deferred taxes exist because Generally Accepted Accounting Principles CGAAP and tax laws differ. These differing rules require companies to prepare two sets of financial statements, one for their stockholders and other financial statement users (GAAP) and one for the Internal Revenue Service. The two sets of financial records result in a net income for GAAP purposes which differs from the income on which the tax is computed. Since 1967, the reconciliation of these two sets of books was prescribed by Accounting Principle Board Opinion #11. The reconciIiation is necessary because expenses are usually recognized faster and revenue recognized later under …