Audit framework Essay Example | Topics and Well Written Essays - 1500 words

Audit framework - Essay Example the statutory audit report is a must for the company in the presentation of their balance sheet, income statement and statement of cash flows. The standard statutory audit is characterised by an auditor performs normal auditing procedures to show that the financial statements are more credible than if no external auditor's opinion is attached. The statutory audit is implemented in order to prevent frauds and illegal acts. As proof,Enron's income statement was window dressed. The company had recorded sales transactions that had never happened. Consequently, these fraudulent transactions would translate to higher sales. Higher sales would give a higher net income. a higher net income would give us a higher net assets. a higher sales would generate a higher stockholders' equity. In addition, the company did not record some of its losses. Enron had fraudulently window -dressed by presenting these Enron losses as losses of its off -shore companies. as a result, the unrecorded losses resulted to a net income that is higher than what the real net income should be. Convincingly, Enron's income statement was window dressed (Fusaro, and Miller 2002, 107) Also, Enron and Arthur Andersen knew that recording fictitious sales and profits would increase stockholder investments. Enron and Arthur Andersen knew that recording fictitious sales and profits would increase stockholder investments. Enron and Arthur Andersen knew that recording fictitious sales and profits would increase stockholder investments. The senior management officers connived with the accounting officers of Enron to prepare the fraud -laden financial statement in complete violation the harmonization standards set by violating the international accounting standards accomplish this fraudulent goal. Clearly, Enron and Arthur Andersen knew that recording fictitious sales and profits would increase stockholder investments (Madrick 2002). urthermore, the WorldCom and Enron accounting scandals are two of the reasons that triggered the approval of the Sabarnes -Oxley Law. The company was a communications company that had risen to profitability during the 1990s. However, the company found its profitability had slowly declined in the early 2000s. This is the largest accounting scandal in history. The officers of WorldCom entered tried to window dress their stock market price. The company's stock market price had decreased because company profits started to decline. The officers, specifically CEO Bernie Ebbers and CPA Scott Sullivan had to prepare false financial statements indicating that their sale and profits were higher than the real sales and profits would show in order to stave the decline of its stock market share price Zekany, Braun, and Warder 2004). Similar to Enron, the company's external auditor, Arthur Andersen, did not comply with generally accepted auditing standards to prevent or curtail material misstateme nts of the income statement and the corresponding balance sheet. The WorldCom fraudulent activities occurred from 1999 to 2002 (Ettredge et al., 1).

Examining Emotions, Attitudes, and Job Satisfaction Assignment

Examining Emotions, Attitudes, and Job Satisfaction - Assignment Example Furthermore, they are given about 10% discount during in-store purchase. The company also offers its employee starting benefits that include both dental and vision insurance. The company pays for not only retirement but also vacation (Ager & ROBERTO, 2013). Manager, on the other hand, are hired only from within and this way they potentially make over 120,000 per year. These are among the things that set Trader Joe’s apart since having a healthy and happy ‘crew’ results in good sales as the staff is approachable to customers and is proud of the job. Trader Joe’s does not just employ managers. Instead, prospective managers are sent to Trader Joe University to learn everything there is about the company. With the training they get, they do not have problems running the store in accordance to what Trader Joe’s has set as guidelines. The university also fosters in them loyalty that they pass on to other members of staff so that the stores are ran according to the company’s and customers’ expectations (Allaway et al., 2011). When every member of staff is instilled with the right character, loyalty, and customer-focused attitude, it does work for the best of the company as the customers receive the service they expect. Conditioning employees in such a way is a marvel and is in no doubt the reason Trader Joe’s a success. Understanding the emotions and attitudes of others is key to managing relationships with all those that leaders work with. Normally, leaders assume superiority and relate with other subordinate staff as lesser people. It goes a long way when a company sees every member of staff as a partner instead of a worker (Lepak, & Snell, 2002). As a leader, it is crucial to understand that your emotions affect those that work around you. This way, decisions made in the store should be founded on reason and rational thinking. By understanding the emotions of others,