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Full-Text Articles in Accounting

Auditor Reporting Under Section 404: The Association Between The Internal Control And Going Concern Audit Opinions, Beng Wee Goh Apr 2012

Auditor Reporting Under Section 404: The Association Between The Internal Control And Going Concern Audit Opinions, Beng Wee Goh

Research Collection School Of Accountancy

Section 404 of the Sarbanes-Oxley Act introduced integrated audits of internal control over financial reporting and the financial statements. Since the internal control and audit reports are joint products of the audit process, we examine whether the issuance of an internal control material weakness opinion (MWO) influences, other things equal, the issuance of a going concern audit opinion (GCO). Using a sample of financially stressed companies, we find that the issuance of a MWO increases the likelihood of a GCO, suggesting that auditors respond to the uncertainty surrounding a MWO by issuing a GCO. Further, the positive association between MWO …


Journal Of Public Budgeting, Accounting And Financial Management [Abstract], Mary Fischer, Treba Marsh Jan 2012

Journal Of Public Budgeting, Accounting And Financial Management [Abstract], Mary Fischer, Treba Marsh

Faculty Publications

No abstract provided.


Should The Sec Adopt International Financial Reporting Standards?, Clemense Ehoff Jr., Dov Fischer Jan 2012

Should The Sec Adopt International Financial Reporting Standards?, Clemense Ehoff Jr., Dov Fischer

All Faculty Scholarship for the College of Business

In 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) formally began a process to converge Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). By the end of 2011, the SEC will likely decide on whether to adopt International Financial Reporting Standards as the financial reporting system for U.S. public companies, continue with the convergence project, or reject IFRS altogether. This paper examines the benefits and drawbacks of each option and formulates a recommendation as to which option is in the best interest of U.S. investors.


Differences In Interim Financial Reporting: Gaap Vs. Ifrs, Benjamin Carton Jan 2012

Differences In Interim Financial Reporting: Gaap Vs. Ifrs, Benjamin Carton

Honors Program Theses

This thesis examines the different accounting standards on the topic of interim financial reporting. It answers the question: What are the differences in accounting reporting standards on interim financial reporting between GAAP and IFRS? As the world becomes more globalized, it is likely that GAAP and IFRS will eventually be merged into one universal set of accounting rules. In order to arrive at this combined set of rules, the differences must first be understood and evaluated. Based on existing theory and research, I have argued which specific approach is preferable. I have recommended that the discrete basis be used to …


Comprehensive Income Reporting: Fasb Decides Location Matters, Dennis Chambers Sep 2011

Comprehensive Income Reporting: Fasb Decides Location Matters, Dennis Chambers

Faculty Articles

The article reports on Accounting Standards Update (ASU) 2011-05 issued by the Financial Accounting Services Board (FASB) in June 2011. It states that the standard requires all companies to report comprehensive income and components either in one continuous statement or in two separate, but consecutive, net income and other comprehensive income statements.In both cases, companies must reportedly now report in an income statement-type location for total comprehensive income.


Goodwill Non-Impairments, Dennis Chambers, Catherine Finger Feb 2011

Goodwill Non-Impairments, Dennis Chambers, Catherine Finger

Faculty Articles

The article discusses the use of goodwill non-impairment by companies to manage their earnings. The effect of Statement of Financial Accounting Standards (SFAS) 142 on goodwill-related earnings management is described. A table shows the results of related the working papers "Earnings Management By Avoiding or Reducing Goodwill Impairments," by Dennis Chambers, "Evidence on the Use of Unverifiable Estimates in Required Goodwill Impairment," by Karthik Ramanna and Ross L. Watts, and "Has Goodwill Accounting Gone Bad?," by Kevin K. Li and Richard G. Sloan.


Fasb/Gasb Recognition And Reporting Differences: A Nonprofit Sector Perspective, Treba Marsh, Mary Fischer Jan 2011

Fasb/Gasb Recognition And Reporting Differences: A Nonprofit Sector Perspective, Treba Marsh, Mary Fischer

Faculty Publications

The financial statement users’, investors’, donors’ and academic researchers’ understanding of current accounting recognition and reporting guidance affect their ability to compare financial information issued by nonprofit universities, hospitals, fund-raising organizations and government agencies. The financial results reported by public nonprofit organizations is different from that reported by private nonprofit organizations. This study discusses the events that brought about the divergence in nonprofit financial accounting recognition and reporting,and illustrates specific differences.


Environmental Risks: Doing Business In China, Jack R. Ethridge, Treba Marsh, Esther Bunn Jan 2011

Environmental Risks: Doing Business In China, Jack R. Ethridge, Treba Marsh, Esther Bunn

Faculty Publications

Planning and conducting the audit of financial statements involves understanding the entity and the environment in which it operates. First and foremost this requires identifying the risks faced by the entity. Identifying these risks can be a complex and difficult task since the auditor needs to not only understand the entity’s risk process but also independently understand the risks facing the firm. Tackling this task will involve a comprehensive review of the external and internal factors affecting the business. It is possible many identified business risks are related to financial reporting risk and ultimately to audit risk. Therefore, the auditor …


Revised Applicability Of Statement On Auditing Standards No. 100, Interim Financial Information; Statement On Auditing Standards, 121, American Institute Of Certified Public Accountants. Auditing Standards Board Jan 2011

Revised Applicability Of Statement On Auditing Standards No. 100, Interim Financial Information; Statement On Auditing Standards, 121, American Institute Of Certified Public Accountants. Auditing Standards Board

Statements on Auditing Standards

No abstract provided.


Alert That Restricts The Use Of The Auditor's Written Communication; Statement On Auditing Standards, 125, American Institute Of Certified Public Accountants. Auditing Standards Board Jan 2011

Alert That Restricts The Use Of The Auditor's Written Communication; Statement On Auditing Standards, 125, American Institute Of Certified Public Accountants. Auditing Standards Board

Statements on Auditing Standards

No abstract provided.


Did Sarbanes-Oxley Lead To Better Financial Reporting?, Dennis Chambers, Dana R. Hermanson, Jeff L. Payne Sep 2010

Did Sarbanes-Oxley Lead To Better Financial Reporting?, Dennis Chambers, Dana R. Hermanson, Jeff L. Payne

Faculty Articles

The article describes and summarizes five studies that examined whether the landmark Sarbanes-Oxley Act of 2002 (SOX) was beneficial or not to financial reporting. The U.S. Congress is stated to have passed the legislation on July 25, 2002 in reaction to a series of financial accounting scandals involving such companies as Enron and WorldCom, as well as the demise of the accounting firm Arthur Andersen LLP. The author asserts that all five of the studies provide evidence of a significant improvement in the financial reporting environment since SOX.


Addressing Problems With The Segregation Of Duties In Smaller Companies, Audrey A. Gramling, Dana R. Hermanson, Heather M. Hermanson, Zhongxia Shelly Ye Jul 2010

Addressing Problems With The Segregation Of Duties In Smaller Companies, Audrey A. Gramling, Dana R. Hermanson, Heather M. Hermanson, Zhongxia Shelly Ye

Faculty Articles

The article discusses the problems encountered by smaller companies in the U.S. in the segregation of duties under Sarbanes-Oxley (SOX) section 404(a), which requires management to disclose its assessment of the effectiveness and weaknesses of internal control over financial reporting in the U.S. Analyses of the management report on internal control of sample companies cited by the authors showed that there are differences in the level of disclosure. The costs and benefits of using third parties in resolving segregation of duties problems are considered.


User Information Risk: How It Improves Audit Quality, Jack R. Ethridge, Treba Marsh Jan 2010

User Information Risk: How It Improves Audit Quality, Jack R. Ethridge, Treba Marsh

Faculty Publications

Audited financial statements are the basis for the communication of essential financial information. Accordingly, the reliability of the financial statements is of extreme importance to all parties involved in the process. This paper identifies the three primary parties as the organization, the auditor, and the user and recommends the user play an increased role in this process. The user should be allowed to analyze the quality of the auditor and audit process based upon five critical factors that should be required to be disclosed by the auditor. This paper discusses the five factors and how each one could benefit the …


Matrix Of The Proposed Statement On Auditing Standards (Sas) Interim Financial Information (Redrafted) Marked Against Sas No. 116, Interim Financial Information (Aicpa, Professional Standards, Vol. 1, Au Sec. 722)., American Institute Of Certified Public Accountants. Auditing Standards Board Jan 2010

Matrix Of The Proposed Statement On Auditing Standards (Sas) Interim Financial Information (Redrafted) Marked Against Sas No. 116, Interim Financial Information (Aicpa, Professional Standards, Vol. 1, Au Sec. 722)., American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.


Audit Committee Material Weaknesses In Smaller Reporting Companies, Audrey A. Gramling, Dana R. Hermanson, Heather M. Hermanson Dec 2009

Audit Committee Material Weaknesses In Smaller Reporting Companies, Audrey A. Gramling, Dana R. Hermanson, Heather M. Hermanson

Faculty Articles

One of the critical elements of internal control over financial reporting is an effectively functioning audit committee. The Sarbanes-Oxley Act of 2002 (SOX) defines an audit committee as " committee (or equivalent body) established by and amongst the board of directors of an issuer for the purpose of overseeing the accounting and financial reporting processes of the issuer and audits of the financial statements of the issuer." Recent SOX section 404 filings by smaller reporting companies ("nonaccelerated filers," or registrants with less than $75 million of public float), however, indicate that some small companies still are struggling to develop effective …


At A Crossroads: The Impact Of International Financial Reporting Standards In The U.S., Cindy K. Harris Oct 2009

At A Crossroads: The Impact Of International Financial Reporting Standards In The U.S., Cindy K. Harris

Business and Economics Faculty Publications

Public companies in the United States face a new challenge. As set forth in its roadmap for implementation, the Securities and Exchange Commission (“SEC”) is considering the potential use of financial statements prepared in accordance with international financial reporting standards (“IFRS”.) The chief goal of these global standards is to establish a uniform system to improve comparability of companies’ financial positions. For decades, Generally Accepted Accounting Principles (“GAAP”) have been the framework of financial statement preparation for public companies in the U.S. The movement to IFRS represents an unprecedented change in the basis of financial reporting, since IFRS would supersede …


The Impact Of Selected Corporate Governance Variables In Mitigating Earnings Management In The Philippines, Mc Reynald S. Banderlipe Ii Jul 2009

The Impact Of Selected Corporate Governance Variables In Mitigating Earnings Management In The Philippines, Mc Reynald S. Banderlipe Ii

DLSU Business & Economics Review

Given the increasing importance of corporate governance in the Philippines, this study attempts to explain the role of selected governance variables related to a company’s board of directors in mitigating earnings management in the country. Using the financial statements of publicly listed companies and a modified measurement model, the findings revealed that the holding of multiple directorial positions by the independent directors, and the managerial ownership of the board are significant enough to limit the incentives for earnings management. Moreover, firm size and return on assets were identified to have explanatory significance among the controlling factors.


Interim Financial Information; Statement On Auditing Standards, 116, American Institute Of Certified Public Accountants. Auditing Standards Board Jan 2009

Interim Financial Information; Statement On Auditing Standards, 116, American Institute Of Certified Public Accountants. Auditing Standards Board

Statements on Auditing Standards

No abstract provided.


An Evaluation Of Financial And Non-Financial Environmental Disclosures Of Ten Publicly-Listed Mining Companies In The Philippines, Nimpha M. Aquino Jan 2009

An Evaluation Of Financial And Non-Financial Environmental Disclosures Of Ten Publicly-Listed Mining Companies In The Philippines, Nimpha M. Aquino

DLSU Business & Economics Review

This study determined the environmental disclosure practices of 10 mining companies in the Philippines by examining the nature and extent of disclosures in the financial and non-financial sections of their 2006 corporate annual reports. It was found out that there was no uniformity in the environmental disclosures of the 10 mining companies. It was also discovered that there was no existing environmental reporting standards as far as environmental disclosure is concerned. The study provided recommendations to the standard-setting council to improve the firms’ environmental disclosure compliance with a discussion regarding the benefits these recommendations might offer.


Sox Section 404 Material Weaknesses Related To Revenue Recognition, Dana R. Hermanson, Daniel M. Ivan, Susan H. Iva Oct 2008

Sox Section 404 Material Weaknesses Related To Revenue Recognition, Dana R. Hermanson, Daniel M. Ivan, Susan H. Iva

Faculty Articles

The article analyzes disclosures of material weaknesses in internal control after the implementation of U.S. Sarbanes-Oxley Act of 2002 (SOX) 404 and summarizes the efforts of firms to remediate such material weaknesses. According to SOX section 404, management must issue a report on the effectiveness of the internal control of the firm over financial reporting. It notes that a report must be issued by the external auditor expressing an opinion on the effectiveness of internal control over financial reporting.


Comment Comment Letters For Exposure Draft Entitled: Interim Financial Information. 2008, American Institute Of Certified Public Accountants. Auditing Standards Board Jan 2008

Comment Comment Letters For Exposure Draft Entitled: Interim Financial Information. 2008, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.


Proposed Statement On Auditing Standards: Interim Financial Information (Amends Au Section 722, Interim Financial Information); Exposure Draft (American Institute Of Certified Public Accountants), 2008, September 2, American Institute Of Certified Public Accountants. Auditing Standards Board Jan 2008

Proposed Statement On Auditing Standards: Interim Financial Information (Amends Au Section 722, Interim Financial Information); Exposure Draft (American Institute Of Certified Public Accountants), 2008, September 2, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.


Earnings Management And Its Implications, Michael D. Akers, Don E. Giacomino, Jodi L. Gissel Aug 2007

Earnings Management And Its Implications, Michael D. Akers, Don E. Giacomino, Jodi L. Gissel

Accounting Faculty Research and Publications

In the wake of continuing, highly publicized financial frauds and failures, the accounting profession has placed renewed emphasis on issues related to earnings management and earnings quality. Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements, which was issued in December 1999 in response to the Committee of Sponsoring Organizations of the Treadway Commission report, illustrates the importance of earnings to the SEC. The SEC and the public are demanding greater assurance about the quality of earnings. Notwithstanding the grave threat that abusive earnings-management practices pose to the reliability and accuracy of financial statements, the accounting profession may be reluctant …


Investors Deserve Solutions, Aicpa Chair Affirms., American Institute Of Certified Public Accountants (Aicpa) Dec 2005

Investors Deserve Solutions, Aicpa Chair Affirms., American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.


Aicpa Comments On Sec's Proposed Rule On Conditions For Non-Gaap Financial Measures., American Institute Of Certified Public Accountants (Aicpa) Dec 2002

Aicpa Comments On Sec's Proposed Rule On Conditions For Non-Gaap Financial Measures., American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.


Aicpa Comments On Sec’S Proposed Rule On Md&A Disclosure Of Off-Balance-Sheet Arrangements, American Institute Of Certified Public Accountants (Aicpa) Dec 2002

Aicpa Comments On Sec’S Proposed Rule On Md&A Disclosure Of Off-Balance-Sheet Arrangements, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.


Aicpa Statement On Sec Rule Proposal Regarding Md&A And Pro Forma Financial Information, American Institute Of Certified Public Accountants (Aicpa) Oct 2002

Aicpa Statement On Sec Rule Proposal Regarding Md&A And Pro Forma Financial Information, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.


Comment Letters On The Exposure Draft Of The Proposed Statement On Auditing Standards, Interim Financial Information, October 28, 2002, American Institute Of Certified Public Accountants. Auditing Standards Board Oct 2002

Comment Letters On The Exposure Draft Of The Proposed Statement On Auditing Standards, Interim Financial Information, October 28, 2002, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.


The High Road, Jane E. Campbell, Heather M. Hermanson, John P. Mcallister May 2002

The High Road, Jane E. Campbell, Heather M. Hermanson, John P. Mcallister

Faculty Articles

Discusses the obstacles to international accounting standards convergence. Effort of the International Accounting Standards Committee (IASC) to promote to convergence theme; Comparison between the convergence frameworks of the U.S. Securities and Exchange Commission and the Financial Accounting Standards Board; Sections of the 'Framework for the Preparation and Presentation of Financial Statements' document issued by the IASC.


Financial Reporting And Information Security Among Top Technology Issues, According To Annual Aicpa Ranking, American Institute Of Certified Public Accountants (Aicpa) May 2002

Financial Reporting And Information Security Among Top Technology Issues, According To Annual Aicpa Ranking, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.