Accounting Regulations Essay Example for Free

Accounting Regulations Essay Accountant Responsibilities By: Jennifer Koppelman March 11, 2014 Accountant Responsibility Accountants have responsibilities to many different groups such as their clients, the government and third parties. It is important that accountants act in a particular manner and have high ethical standards, integrity and professionalism. Accountant’s job responsibility is to validate financial statements and perform the duties in accordance with all the principles, standards and laws. Even though an accountant is hired by a company, they have a responsibility to many more people than just the company. Some of the people that accountants are responsible to, would be the companys management, investors, creditors, outside regulatory bodies, and the integrity of the financial markets. Accountants need to be consistent and constantly be carefully exercising due diligence and pay close consideration of the materiality of content (Accountant Responsibility). Accountants have a code of professional conduct that they should adhere to. This states that accountants should maintain objectivity and be free of conflicts of interest in the discharging professional responsibilities. An accountant in public practice should be independent in fact and appearance when providing audit and other attestation services. Situations where accountants will need to show objectivity would be when they are felt compelled to deliver bad news to a client or employer based on an analysis that they had performed (Colson, 2004). There are two different types of auditors; internal auditors and external auditors which have different responsibilities. Internal auditors have the main responsibility to develop statements that present the financial situation of a company in a fair way, meaning that as much disclosure as necessary to give a reasonable picture of the financial situation to any user having a claim to the knowledge. External auditor’s responsibility is to affirm that this has happened by issuing an opinion as to whether the financial statement fairly presents the financial position of that corporation (Duska, 2005). Accountant Responsibility to Clients Accountants have a professional responsibility to clients to keep their information confidential. The rule states that a member in the public practice shall not disclose any confidential client information without the specific consent of the client. This also extends to other accountants not directly involved with the client who obtain information through practice reviews or sanctioned disciplinary hearings to maintain confidentially. There are certain exceptions that facilitate compliance with other professional and legal obligations. Maintaining confidentiality is not only a professional obligation but also a legal obligation. General knowledge and expertise obtained through a client engagement is not considered to be confidential information (Cashell). Accountants have ethical responsibility to protect their clients, produce financial statements and tax returns that are to the best of their ability after performing proper due diligence. If there was an event that an audit would occur for a government agency they should represent their clients with professionalism. Accountants should always maintain the highest ethical standards. Accountants perform essential and critical roles in society. Accountants have responsibilities to all of those who use their professional services. The American Institution of CPAs has an official rule, Rule 301 states a member in the public practice shall not disclose any confidential information without the specific consent of the client. Accountant’s number one responsibility is to its clients, it is important that accountants do not disclose client information to anyone without the client’s permission first. There are consequences to the accountant if they do not keep client information confidential. It can also have a negative effect on the clients business, which will negatively affect the accountant also (ET Section 301 Client Confidential Information). CPA Responsibility to Clients Case Even when an accountant has the intention to warn others of pending financial harm the courts have held that accountants must not give any client information, client information should always remain confidential. In a case Wagenheim v. Alexander Grant Co the court ruled that Alexander Grant improperly divulged confidential information about their client, Consolidata Data Services, to other clients. Consolidata Data Services, an audit client of Alexander Grant performed payroll services for several of Alexander Grants other clients. Alexander Grant discovered that Consolidata Data Services was having financial difficulty; Alexander Grant warned their other clients to stop doing business with Consolidata Data Services. Alexander Grant argued that the other clients would suffer financial damage without warning them. The ruling was against Alexander Grant, the court said that there was no proof that Consolidata Data Services was in a financial hardship that they could not recover from. Which Alexander Grant had no legal right to inform third parties of the financial burden that Consolidata Data Services was in (Cashell, 1995). It is important that accountants keep client information confidential at all times. The accountant might not know the whole picture of a business and a company can state that they could have recovered from the financial burden but because the accountant may have told other clients that could ruin the reputation of the client and affect the business. It is always safer not to say anything in regards to the financial situations when you have an obligation to your client. Accountant Responsibility to Third Parties Accountants do not have as much liability to third parties as they do to clients. Accountants have a liability to third parties who are relying on the audit information, only if there is fraudulent conduct or proof of negligence would they be liable to the third party. When public accountants are done with an audit of their clients records and financials they put an opinion letter which sets forth, among other things, the scope of the audit and a professional opinion concerning the financial representations. Even though third parties may rely and act upon the auditor’s opinion, the auditor is contractually bond only to the client and usually owes nothing, no legal duty to third parties for negligence (Greene, 2003). Accountants need to be very careful when warning outsiders of a client’s fraud. Based on prior court cases, CPAs generally do not have an obligation to inform outsiders of known fraud unless if they remain silent they are becoming culpable themselves. It is a risky situation if an accountant decides to blow the whistle (Cashell, 1995). Accountants are generally not responsible to third parties in contracts because there is no privity of contract. However, accountants can be held to be a common law duty of care towards third parties in certain circumstances, despite that there is no contractual duties. Circumstances that give rise to such duty have been considered in a substantial number of cases in recent years and three general tests have been developed. One of the tests would be if there is foreseeability damage, proximity between parties and considerations of justice and reasonableness. Another test would be testing the assumptions of reasonability. If the court would take an incremental approach in comparing the relationship in any given case to previously decided cases in which a duty of care had been recognized or rejected. An accountant can be liable to a third party if the accountant knew or should have known that they were relying on the audit, only for fraudulent conduct and proof of mere negligence is not sufficient. If the accountant knew that the audit report for the client was intended to supply the information to a third party who would rely on the information. If the third party would be relying on the information in a decision concerning transactions involving the client and the third party (Professional Liability of Accountants Auditors). Duty to Disclose to Third Parties In some cases information should be disclosed to third parties but an accountant needs to be very careful and proceed accordingly. If it is detailed in their engagement letter, which is a written agreement to perform services in exchange for compensation then an accountant has a duty to disclose information. Once the letter is signed off on by an officer then the letter serves as a contract (Engagement Letter). In one case; Fund of Funds Ltd. v. Arthur Andersen Co. the CPA had a duty to disclose. Arthur Andersen was the auditor for two clients, Fund of Funds and King Resources Corp. King Resources Corp developed natural resource properties and agreed to be the sole vendor of such properties to Fund of Funds at prices no higher than those charged to King Resource Corp industrial clients. Arthur Andersen learned the agreement was not being met but failed to inform Fund of Funds. The court did rule that Arthur Andersen should have disclosed this fact to Fund of Funds because they had knowledge of the overcharges, knew the terms of the agreement that was being violated and the language of their engagement letter produced a contractual obligation to reveal that information. Another case involving duty to disclose, this one a CPA was found that he did not have a duty to disclose information. The case Gold v DCL Inc. , Price Waterhouse Co. informed DCL in December that they intended to qualify their audit report on DCLs financial statements. DCL was in the business of leasing computers and Price Waterhouse believed that their ability to recover their computer equipment costs was impaired due to the impending release of a new line of more powerful computers by IBM. In February, DCL announced earnings without mentioning Price Waterhouses concern and on February 15 Price Waterhouse was replaced. The court ruled that there was no basis in principle or authority for extending an auditors duty to disclose beyond cases where the auditor is giving or has given some representation or certification and the silence and inaction of the defendants auditors did not make them culpable. The courts reasoning that the CPA did not have to disclose was because the auditors had issued no public opinion, rendered no certification and in no way invited the public to rely on their financial judgment there was no special relationship that imposed a duty of disclosure (Cashell, 1995). Accountant Responsibility to the Government Different local, state and federal governments have different rules and regulations that accountants need to learn for the area and industry that they will be working in. This is important to find out and comply with the different regulations. This is part of an accountant’s responsibility to provide accounting services that are in compliance with the government regulations for your client’s particular industry. There may be different regulations for different industries so it is important to know which regulations are pertinent to your client. CPA for Responsibility to Government Case Some state laws might grant accountant client privileges, but these laws do not usually extend to a summons or subpoena related to a Federal Investigation by such agencies such as the IRS, or the SEC. In a case, Couch v. United States, the Supreme Court concluded that no Federal accountant client privilege exists and state created privileges do not apply to Federal cases. Before an accountant is responding to a Federal agency, the accountant should be sure that they are only responding to a valid and enforceable subpoena. In another case, Roberts v. Chaple, the Appellate Court ruled that the accountant violated Georgias statutory accountant client privilege because he provided information to the IRS without having been served a valid summons or subpoena. Some state privilege laws could also affect the ability to release information pursuant to a review of a CPAs practice. Firms are responsible for meeting and keeping client confidentiality obligations whenever state statutes do not clearly provide a confidentiality exemption for a peer review of a firms practice. Whenever an accountant is not sure on if information should be released it would be best to consult a lawyer and obtain legal counsel to ensure that they are not breaking any laws or violating any confidentiality agreements or obligations(Cashell, 1995). Conclusion Accountants need to be ethical and practice with the highest professionalism and ethics. Accountants have many responsibilities not only to the client that they are servicing but to the government and to third parties. Responsibilities are higher to clients then third parties but it is important to know when and where your responsibility for each is. If an accountant is negligent or not responsible to the parties when they should have been there are consequences. An accountants main responsibility is to their client, it is important to keep client information confidential at all times. Not keeping client information confidential can have a negative effect and consequences on the accountant and the client. It is important that accountants do not disclose client information without the permission from the client first. All accountants need to have and maintain the highest ethics, professionalism and confidentiality.

Social Ostracism in Mark Twains Adventures of Huckleberry Finn Essay

Social Ostracism in Mark Twain's Adventures of Huckleberry Finn In the words of Pap, â€Å"You think you’re better’n your father, now, don’t you, because he can’t [read and write]?† (2). In Mark Twain’s adventure novel Adventures of Huckleberry Finn, Huck Finn escapes from civilized society to traverse the Mississippi River. Throughout the book, Twain uses various themes such as social ostracism to comment on human nature and its role in shaping society. Sometimes mainstream society is not as right and moral as it believes, and when individuals try to justify it they push away their own humanity. Twain demonstrates this through the various lifestyles, comparing the intellects and beliefs of different social classes, and Huck’s conforming to each facet of society. One of the first instances Twain uses to portray sociological exclusion reveals itself in the contrast of lifestyles. Throughout his life both prior to and after his â€Å"murder,† circumstances expose Huck to opposing ways of life including but not limited to rich vs. poor and simple vs. complex. Personifying middle-class society, Widow Douglass acts as a mother figure for Huck, deeming it her duty to â€Å"sivilize† (1) her adopted son, dressing him well and sending him to school. On the contrary, Pap observes that â€Å"You’ve [Huck] put on [†¦] frills† and swears to take him â€Å"down a peg† (14). The two family icons pull Huck in opposite directions, but as influential as they may be, Huck knows he does not have a place in either world. If anything, Huck identifies more with the simplicity of Pap’s natural way of life than with the materialism of the middle-class of society. Willfully shunning both Pap and Widow Douglas, Huck finds a way to â€Å"keep Pap and the widow from following† him instead of moving â€Å"far enough off before they missed [Huck]† (31). Furthermore, a contrast of the characteristics of men and women presents itself when Huck attempts a reconnaissance mission as a girl in St. Petersburg. Huck cannot go as himself because society would catch him and return him to what he escapes from, but the way men and women live is different enough that they cannot impersonate each other. Although he practices and thinks he manages, Jim’s comment that Huck does not â€Å"walk like a girl† (41) does not do it justice. Almost instantly the woman Huck chooses to question sees through his disguise, explaining that Hi... ...inds a way to fit in only to find that he doesn’t belong—belonging to all societies, yet none of them. The only place where he finds relative peace is on the river. It is the only place where there is nothing to struggle against. Huck is a misfit wherever he goes, rejecting and rejected by mainstream society and every other accepted society that he finds along the river. Throughout his journey, Huck finds different ways of separating himself from society while being a part of it. He sees how quickly life changes and how lifestyles can affect a person. Further set apart by his views, Huck forsakes traditional beliefs for superstition and the balance of luck. Through his journey along the Mississippi River, Huck also understands how much intelligence changes. Feeling no affinity for any aspect of mainstream society he experiences, Huck willingly spurns what he knows as humanity for the society that suits him. At the close of his journey when Aunt Sally makes plans to â€Å"adopt [Huck] and sivilize [Huck],† Huck informs the reader that he has no desire to join high society—â€Å"[he] been there before† (220). *The paranthetical documentation is for the Dover Thrift edition of the book.

Holden as the Typical Teenager of Today Essay

Holden Caulfield, portrayed in the J.D. Salinger novel Catcher in the Rye as an adolescent struggling to find his own identity, possesses many characteristics that easily link him to the typical teenager living today. The fact that the book was written many years ago clearly exemplifies the timeless nature of this work. Holden’s actions are those that any teenager can clearly relate with. The desire for independence, the sexually related encounters, and the questioning of ones religion are issues that almost all teens have had or will have to deal with in their adolescent years. The novel and its main character’s experiences can easily be related to and will forever link Holden with every member of society, because everyone in the world was or will be a teen sometime in their life. The first and most obvious characteristic found in most teens, including Holden, would be the desire for independence. Throughout the novel, Holden is not once found wishing to have his parents help in any way. He has practically lived his entire life in dorms at prestigious schools, and has learned quite well how to be on his own. This tendency of teenagers took place in even in ancient history, where the freshly developed teen opts to leave the cave and hunt for is own food. Every teenager tries, in his or her own way, to be independent. Instead of admitting to ones parents of a wrongful deed, the teen tries covering up the mistake or avoiding it in hopes that they won’t get in any trouble. They feel that they have enough intelligence to think through a problem without going to their parents for assistance. Read more: Teenagers today essay When Holden hears the news that he has been expelled from Pency, he concludes that his parents would not know of this for a few days. Therefore, he would wait from Saturday all the way to Wednesday, let his parents â€Å"get it and thoroughly digest it†, and then face the consequences, which will more than likely be less severe after his parents calmed down. He states on page fifty-one, â€Å"I didn’t want to be around when they first got it. My mother gets very hysterical. She’s not too bad after she gets something thoroughly digested, though.† In taking the independent route, Holden does not look for sympathy or help from either of his parents. He feels that he can deal with his situation by waiting until the next school year in order to apply himself a little better. Another characteristic of a teenager, usually of the male gender, would be the widespread subject of sex. As everyone knows, during and after puberty, males have a stronger desire to fantasize about and perform sexual acts. Holden is no different. In my mind, I’m the biggest sex maniac you ever saw. Sometimes I can think of very crumby stuff I wouldn’t mind doing if the opportunity came up. (Pg. 62) Although Holden honestly states to the reader that he is a virgin, he still has encounters associated with sexual activity. First and foremost, Holden actually obtains a prostitute during a brief stay at a hotel room. Holden never has sexual intercourse with this woman, but it does show that he is a teenager looking for affection and pleasure. Also, he proclaimed that he had plenty of opportunities to â€Å"give the time† to other woman, but he never quite knew how to do it while on a date. Holden is much like the average teen in this regard. The media and other primary sources in teens lives have taken an interest in sex, and have made it seem like it is the greatest thing known to mankind. Most teenagers find it slightly embarrassing to admit to being chaste, mainly due to the fact that they think everyone is doing it; which is clearly false. Teenagers want to experience and experiment with sex, and even if they choose to not have sex until marriage, they will fantasize about it. This is yet another example of the similarities in which Holden and the typical teen share. Sex and religion almost go hand in hand today amongst the teenage population. Do teens wait for marriage like the Bible insists or should teens defy the rules outlined by the Bible and have pre-marital sex? Although the novel doesn’t quite refer to sex in a religious sense it is a good example of choices teens are forced to make. Teens, along with many other members of society, don’t agree with every guideline that the Bible sets out for them. They have to decide how large of a role religion is going to play in their lives. Holden says that he, in some ways, is â€Å"an atheist.† He sometimes prays to Jesus, and yet other times he feels like he just cannot pray because of his likes, dislikes, and indifferent views of the church. This can be related to many teenagers, for religion is not always an easy subject. Teens sometimes feel that not all information of a particular religion is completely true. Some teens toy with the fact that their faith, if they have one, is actually factual. Holden feels that the information on Jesus is probably true, but the Disciples and other characters from the Bible he’s a little suspicious of. Take the Disciples, for instance. They annoy the hell out of me, if you want to know the truth. They were all right after Jesus was dead and all, but while He was alive, they were about as much use to Him as a hole in the head. (Pg. 99) He has many questions, as does all of society on some contradicting issues concerning religion. As seen in these previous examples, Holden Caulfield truly resembles the typical teen. He has gone through the same situations, encountered many of the same problems, and he also has acted in similar ways as the average teen. Teenage adolescence is a period of transition between childhood and adulthood. In this period, we all experience development both physically and emotionally, including the epitome of all teens, Holden Caulfield.

The Concrete Stages Of Children Aged 8-11 Develop Impaired...

During the third concrete operational stage, children aged 8–11 develop cognitively through the use of logic that is based on concrete evidence. Piaget considered this a major turning point in development because it marked the beginning of logical or operational thought. The child is mature enough to use logical thought or operations (rules) but can only apply that logic to physical objects (hence the term concrete operational). They become less egocentric and better at conservation tasks (conservation refers to a logical thinking ability). If two round balls of playdough of exactly the same size are balanced opposite each other on a scale, a child can be shown that they weigh the same. However, if one is squashed and the child is asked†¦show more content†¦If a child has to draw the children to work out the answer they have not yet progressed from the concrete operational and into the formal operational stage. Piaget called his collective theories on child development a genetic epistemology (i.e. the origins of thinking). He also relied on the concept of schemas, defined as the cognitive structures and frameworks through which we understand the world, to help further explain his developmental theories. Piaget was the first psychologist to make a systematic study of cognitive development. His other contributions include detailed observational studies of cognition in children, and a series of simple but ingenious tests to reveal different cognitive abilities. Before Piaget’s work, the common assumption in psychology was that children are merely less competent thinkers than adults. Piaget showed that young children think in strikingly different ways compared to adults. According to Piaget, children are born with a very basic mental structure (genetically inherited and evolved) on which all subsequent learning and knowledge is based. The work of Lev Vygotsky (1934) has become the foundation of much research and theory in cognitive development over the past several decades, particularly of what has become known as Social Development Theory. Vygotsky s theories stress the fundamental role of social interaction in the development of cognition (Vygotsky, 1978), as he believedShow MoreRelatedStephen P. Robbins Timothy A. 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