This website uses cookies to ensure you have the best experience. Learn more

Accounting Regulations Essay

2587 words - 11 pages

Corporate Scandals
And
Regulations

February 18, 2014

Introduction
In recent years there has been many different regulations that have been put into effect to avoid any more accounting scandals. Some scandals that has gotten worldwide attention would be scandals such as WorldCom, Enron and Avon. These regulations have been put in place to help investors and to prevent companies from being put in situations where a scandal could arise. Companies need to pay close attention and follow the regulations or there can be stiff penalties and consequences against both the employee and the company. There are debates on whether there should be more or less regulations regarding ...view middle of the document...

The objectives of this act is that investors would receive any financial or other significant information that would be related to any securities that would be for sale to the public. Another objective is to forbid any deceit, misrepresentation and any other fraud that could happen in the sale of securities.
Registering of financial information of securities is to have the important financial information disclosed. With this information being disclosed it is to help the investors not the government to make better judgments on whether or not to purchase and invest in a company's securities. While the information is not guaranteed it is to provide more accurate information. If an investor can prove that in the financial information there was incomplete or inaccurate information they do have recovery rights if there are losses suffered.
When a company wants to sell securities in the United States they must be registered. When a company registers they file the following information: descriptions of the company's properties and business, description of the security to be offered for sale, information about the management of a company and financial statements that are certified by independent accountants. Once registration statements are filed with the SEC they are make public shortly. There are some exemptions of companies that do not need to be registered companies that are private offerings to a limited number of persons or institutions, offering of limited size, intrastate offerings and securities that are municipal, state and federal governments. By offering these exemptions from the registration process, this helps the SEC to lower the cost of offering securities to the public (The Laws That Govern the Securities Industry).

Securities Exchange Act of 1934
The SEC has broad authority over all parts of the securities industry which includes power to register, regulate, and oversee brokerage firms, transfer agents and clearing agencies as well as the nation's securities self regulatory organizations. There are many different securities exchanges such as; New York Stock Exchange, NASDAQ Stock Market, Chicago Board of Options and Financial Industry Regulatory Authority. An important aspect of this act is that it identifies and prohibits certain types of conduct in the markets and allows the Commission to take disciplinary action over regulated entities and persons that are associated with them. Companies that are publicly traded need to report financial information periodically.
This act requires that important information is disclosed by anyone that is seeking to acquire more than five percent of a company's securities by direct purchase or by tender offer. This offer is usually extended when there is an effort to gain control of a company. This allows for people to make informed decisions on critical corporate events.
There are security laws that prohibit any kind of fraudulent activity of any kind that are in...

Other Papers Like Accounting Regulations

Managerial Accounting Essay

536 words - 3 pages organize these systems to be even more reliable for the board of directors and management to make concise decisions. Therefore making the meetings easier to connect with the internal accounting systems for the corporation, and help to clarify government regulations and corporate policies. The Objectives and Characteristics of an Internal Accounting System With this in mind, objectives of an internal accounting system are that it will support

Accounting Careers Essay

848 words - 4 pages What is accounting? Its financial information for a business or individual which is prepared by a trained accountant for investors, tax audits, creditors, to pay taxes and to receive tax returns. What is an accountant? The accounting profession is a very diverse field with a number of different professional occupations a person can get into, and some of these fields depend on the accounting degree a person has. An accounting degree ranges from a

Concept of Accounting

1764 words - 8 pages deficiencies in accounting practices. Many aspects of current accounting practices started with the flood of business regulations from the Roosevelt administration. The earliest electronic computers were funded to assist the World War II efforts. By 1950 massive efforts were begun to automate accounting practices, a continuing process. A global real-time integrated system is a near reality, suggesting new accounting paradigms replacing double entry and

Accounting System Bsa/310

835 words - 4 pages The Value of a New Accounting System The Value of a New Accounting System An appropriate accounting system is vital in the success of any business. Not all accounting systems are alike and choosing the one that works best for each business is an important factor to consider when deciding how best to handle accounting. The core attributes of an accounting system are not enough. This includes accounts payable, accounts receivable, billing

Account

1362 words - 6 pages be prepared in conformity with such law. The Accounting Standards by their very nature cannot and do not override the local regulations which govern the preparation and presentation of financial statements in our country. However, the Institute will determine the extent of disclosure to be made in financial statements and the related Auditor’s reports. Such disclosure may be by way of appropriate notes explaining the treatment of particular

Public Company Accounting Oversight Board

798 words - 4 pages register with PCAOB to take part in audit reports for dealers, issuers and brokers. Non-U.S. accounting firms that participate in any aspect of auditing reports are subject to the PCAOB rules and regulations as well. The PCAOB has the authority to “investigate and discipline registered public accounting firms and persons associated with those firms for noncompliance with the SOX, Security Exchange Commission (SEC), and other standards” ("What Is

Positive Accounting Theory

1018 words - 5 pages create an increase in taxes and other regulations. These three hypotheses form the cornerstone of Positive Accounting Theory. They all lead to empirically verifiable predictions. Empirical PAT Research Positive accounting theory has created a large amount of empirical research. Lev’s research helped us understand why firms choose the accounting polices they do, why some managers would object to the change in policies, and why

Accounting Code of Ethics

1255 words - 6 pages regulations “There are many rules and regulations in the field of accounting. Many of these are created for the interest of the public, who rely upon a company's financial statements and accounting practices as the basis of their investments” (Creative Commons Corporation, 2007). An accountant must be aware of the laws, rules, and regulations that affect their daily job responsibilities at all times. Financial Reporting Maintaining true and

Accounting

1693 words - 7 pages countries deal with accounting rules and regulations compared to us (Holt, Paul . "What Is An International Accountant?."). I would love to while I am doing something that I went to school for I’m learning more about and it’s not the same thing over and over. If I deal with the same thing every day in my life I’m going to become bored and unhappy I need change I need difference and international accounting is just that. The last specialty I

Technology And Accounting

974 words - 4 pages services as “accomptants.” As business regulations increased along with taxes, the need for professional number crunchers became clear. The first accounting firm opened in 1845 in London, but accounting technology and technological advances in accounting such as accounting software didn’t come until much later. Early Technology Accounting technology has always played a role in keeping track of numbers, and the idea of using machines to solve

Accounting Careers

1667 words - 7 pages and that the controls in place are sufficient. You may also review your company’s operations and check these for compliance with government regulations. Forensic Accountant. More often the stuff of a Raymond Chandler hard-boiled detective or a Cold War-era secret agent, the crime-fighting, mystery-filled life of a forensic accountant is miles away from the “bean counter” accounting stereotype. Working on anything from bankruptcy and divorce, to

Related Essays

Accounting Cycle Essay

668 words - 3 pages . • Primarily for the external decision maker Financial Tax Management Cost – – – • External reporting follows legal and GAAP requirements • Objective: provide standard view of organization’s past performance Different views for different audiences Our focus: financial and managerial 9 10 Tax Accounting Management Accounting • Based on IRS regulations • Designed primarily for the internal decision maker • Reporting

Ibrahim Shatat Essay

620 words - 3 pages Supervisor Accounting: Responsible for the Accountability and Supervision of different aspects of accounting functions for different lines of business, this involves approving Journal Entries, Analyzing balances, Account Payable, Expense Tracking, Researching Data and Assisting to Identify Variances, in addition, this position ensure that all regulations for each line of business are followed and the applicable reporting needed is met timely

Xacc 280 Week 5 Dq 2

295 words - 2 pages computers in recording business events a.   has made the recording process more efficient. b.   does not use the same principles as manual accounting systems. c.   has greatly impacted the identification stage of the accounting process. d.   is economical only for large businesses.      Generally accepted accounting principles are a.   income tax regulations of the Internal Revenue Service. b.   standards that indicate how to

Lesson Plan Far600 Essay

1837 words - 8 pages ACCOUNTING THEORY AND PRACTICE (FAR 600) Teaching and Learning Arrangements (SEMESTER: JAN 2007 – APRIL 2007) COURSE CODE : FAR 600 PROGRAM : BACHELOR OF ACCOUNTING (HONS) CREDIT HOURS : 4 CONTACT HOURS : 4 STATUS : CORE SYNOPSIS This financial accounting course exposes students to accounting theory, corporate accounting policies and financial reporting