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Pages:
3 pages/β‰ˆ825 words
Sources:
2 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
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Total cost:
$ 14.04
Topic:

Litigation, Censures, and Fines Writing Assignment

Essay Instructions:

Research the Internet or Strayer Library for recent litigation, censures, and fines involving national public accounting firms.  Examples of litigation cases against national public accounting firms include fines by regulatory authorities and censures by professional societies. To complete Assignment 2, find examples of litigation, censures and fines from within the past two (2) years.
Write a three to four (3-4) page paper in which you:
Analyze the primary accounting issues which form the crux of the litigation or fine for the firm and indicate the impact to the firm as a result of litigation or fine. Make sure that the examples you provide are from within the last two (2) years. Provide support for your rationale.
Examine the key inferences of corporate ethics related to internal controls and accounting principles which lead to the litigation or fine for the accounting firm.
Evaluate the primary ethical standards of the accounting organization’s leadership and values that contributed to approval of the accounting issues and thus created the litigation or fines in question.
Identify specific conduct violations committed by the organization and accounting firm in question. Next, create an argument supporting the actions against the organization and accounting firm, based on the current professional code of conduct for independent auditors and management accountants.
Make a recommendation as to how regulators and professional societies may prevent the type of behavior in question in the future. Provide support for your rationale.
Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and similar websites do not qualify as academic resources. You have access to Strayer University’s Online Library at https://research(dot)strayer(dot)edu or iCampus University Library Research page at https://icampus(dot)strayer(dot)edu/library/research.
Your assignment must follow these formatting requirements:
This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow SWS or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Determine the appropriateness of decision making in terms of professional standards and ethics.
Apply advanced federal taxation concepts to business situations

Essay Sample Content Preview:

Litigation, Censures, and Fines
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Litigation, Censures, and Fines
Deloitte is a multinational accounting firm and one of the Big Four firm offering a wide range of services from auditing, tax, and financial advisory among others. In 2018, the firm was censured and fined by the Public Company Accounting Oversight Board (PCAOB) for overlooking material accounting errors in Jack Henry & Associates, Inc. audits for the years 2012, 2013, and 2014 (PCAOB, 2018). This paper will analyze the missed material accounting errors that resulted in the censure and fine and the consequences of the fine to the firm. Further, the paper will examine corporate ethics, ethical standards of the firm’s leadership, conduct violations committed by the firm, as well as recommendations on how missing material accounting errors can be prevented.
Missed material accounting errors are serious accounting issues arising from judgmental or fact-based misstatements. According to PCAOB (2018), Deloitte assigned employees who had limited knowledge about the software industry and the necessary generally accepted accounting principles. As such, the evaluation of the company’s revenue and the audit of the accounting for revenue arising from software license was not accurate. This is usually referred to as a factual material error because as Bellandi (2018) suggests, it involves failure to effectively follow or apply the accounting principles. Deloitte was censured and fined $500, 000, which definitely had an impact on the firm. One of the impacts was loss of finances because the fine definitely was quite costly and if such fines keep on being imposed, they pose a threat to the financial success of the firm. The second impact was on the image of the firm. Missing the material accounting error not only once, but three times, led to the questioning of Deloitte’ s audit quality. Further, the censures also affected Deloitte’s reputation, which is a blow to the firm's ability to gain a competitive advantage from its brand image.
In accounting, corporate ethics is paramount in ensuring that the information prepared, presented and disclosed is done within the prescribed ethical framework. According to Bellandi (2018), firms should have proper internal controls that can detect and prevent accounting errors. Yet, Deloitte seems to have failed to secure proper internal controls because it failed to detect material accounting errors for three consecutive years. This places the ethical culture of Deloitte to question. In addition, Deloitte failed to assign auditors who had proper knowledge of software licensing industry, which led to the material accounting error and the subsequent censure and fine.
One of the ethical standard, or lack of it in this ...
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