Finance and Accounting Essay Example | Topics and Well Written Essays - 250 words

Finance and Accounting - Essay Example According to most business firms, the definition employed by COSO relates to the aggregate control system of an organization. This paper will discuss the advantages and disadvantages of the forms of documentation presented by auditors. In most organizations, the auditors obtain information regarding the internal control of an organization and summarize the information in a form of documentation. In most instances, they use questionnaires, flowcharts, written narratives in order to present their findings. For example, an internal control questionnaire contains questions regarding the organization. In this form of documentation, negative responses signify weakness while positive answers signify the strengths of the organization. Questionnaires are normally easy to use. Furthermore, they cover a wide a topic of discussion. Contrarily, questionnaires are not flexible, and they may also require assistance while filling the answers (Giove 44). This proves that questionnaires are somewhat time-consuming and ineffective. A written narrative can also be used in the description of the main transaction cycles in an organization. Written narratives have also proved to have both merits and demerits. For instance, a written narrative substantially enhances the understanding of the personnel of the organization. However, this method is time-consuming and presents a difficulty of clear clarification of the content (Giove 45). Lastly, flowcharts can be described as diagrammatic representations of documents and procedures in a sequential manner.

Analysing Different Ethical Theories Philosophy Essay

Analysing Different Ethical Theories Philosophy Essay Ethics may be viewed as the study of human conduct with an emphasis on determination of right and wrong (Fraedrich and Ferrell, 1992). Together with this, it is the assumption that management must adhere to a narrow version of positivism that excludes any reference to intention (Ghoshal, 2005). According to (Mallor et al., 2010), for centuries, religious and secular scholars have explored the meaning of human existence and attempted to define a good life. Ethical theories and principles are the foundations of ethical analysis because they are the viewpoints from which guidance can be obtained along the pathway to a decision. The four ethical theories according to the text are rights theory, justice theory, utilitarianism, and profit maximization. The rights theory covers a range of ethical philosophies that holds that certain human rights are important and must be respected by other society and her rights. Rights are also considered to be ethically correct and legitimate given that a large or ruling population endorses them. Few rights theorists are stringent deontologists, and one of the few is the 18th century philosopher by name Immanuel Kant and his theory is known as the Kantianism. Kant viewed humans as moral actors that are free to make choices and he also believed that humans are able to judge the morality of any action by applying his famous categorical imperative. One of his formulations of the categorical imperative is Act only on that maxim whereby at the same time you can will that it shall become a universal law. The meaning of it is that we judge an action by applying it universally. The most important strength of rights theory is that it protects fundamental rights, unless some greater right takes precedence. A major criticism of the rights theory deal with the near absolute yet relative value of the rights protected, making it difficult to articulate and administer a comprehensive rights theory. The Justice theory which came into limelight by John Rawls in 1971 when he published his book entitled: A theory of Justice, the philosophical underpinning for the bureaucratic welfare state. He reasoned that it was right for governments to redistribute wealth in order to assist the poor and the destitute. Furthermore, Rawls expressed this philosophy in his Greatest Equal Liberty Principle: each person has an equal right to basic rights and liberties. He further limited the principle with the Difference Principle: social inequalities are acceptable only if they cannot be eliminated without making the worst-off class even worse off. Rawlss justice theory has application in the business context which requires decision makers to be guided by fairness and impartiality. The strength of Rawlss justice theory lies in its basic premise, the protection of those who are least advantaged in society. The ethical dilemma for managers is to determine the fair rules and procedures for distributing outcomes to stakeholders. Managers must not give people they like bigger raises than they give to people they do not like, for example, or bend the rules to help their favorites. On the other hand, if employees want managers to act fairly toward them, then employees need to act fairly toward their companies and work hard and be loyal. Similarly, customers need to act fairly toward a company if they expect it to be fair to them-something people who illegally copy digital media should consider. The criticism that justice theory with the rights theory is that it treats equality as an absolute, without examining the costs of producing equality, including reduced incentives for innovation, entrepreneurship and production. Utilitarianism entails a decision maker to maximize utility for society as a whole. Maximizing utility means achieving the highest level of satisfactions over dissatisfactions which means that a person must consider the benefits and costs of her actions to everyone in society. A utilitarian will take action only if the benefits of the action to society outweigh the societal costs of the action. There are two types of utilitarianism, act utilitarianism and rule utilitarianism. Act utilitarianism judges each act separately, assessing a single acts benefit and its cost to societys members. Rule utilitarianism judges actions by a rule that over the long run maximizes benefits over cost. The strength of utilitarianism as a guide for ethical conduct is that it is easy to articulate the standard of conduct; which coincides with values of most modern countries like the USA who is capitalist in nature by focusing on total social satisfactions, benefits, wealth and welfare. In general under ca pitalism, the interests of shareholders are put above those of employees, so production will move abroad. This is generally regarded as being an ethical choice because in the long run, the alternative, domestic production might cause the business to collapse and go bankrupt. If this happens, all of the companys stakeholders will suffer-not just its employees. According to the utilitarian view, the decision that produces the greatest good for the greatest number of people is best. In this case, that means outsourcing the jobs. The criticism of utilitarianism is that it is difficult to measure ones own pleasures, pains, satisfaction and dissatisfaction, let alone those of all of societys members. Profit maximization as an ethical theory requires a decision maker to maximize a businesss long-run profits within the limits of the law. This has been based on the laissez faire theory of capitalism first expressed by Adam Smith in the 18th century and more recently promoted by economists such as Milton Friedman and Thomas Sowell. Profit maximization is closely related to utilitarianism, but it varies essentially in how ethical decisions are made. Profit maximization optimizes total social utility by narrowing the actors focus, requiring the decision maker to make a decision that merely maximizes profits for himself or his organization. The strengths of profit maximization results in ethical conduct because it requires societys members to act within the constraints of the law and a profit maximizer, therefore, acts ethically by complying with societys mores as expressed in its laws. The criticism of profit maximizer is that if profit maximization results in an efficient allocation o f societys resources and maximization of total social welfare, it does not concern itself with how wealth is allocated within Society. An ethical theory that was not found in the text is that of rationalism, which this ethical theory focuses mainly on norms. The moral rationalism is that in which the decisive factor of the truth is not sensory but intellectual and deductive, and it has its major proponent in Emmanuel Kant (Llano, 2002). Mr. Kant attempted to change our everyday, clear, rational knowledge of morality into philosophical knowledge. He went after a technique of using practical reason to reach conclusions which are able to be useful to the world of experience. Kant is also known for his theory that there is a single moral obligation which he called the Categorical Imperative, and derived from the perception of duty. He further stated that these moral norms must be obeyed in all situations and circumstances if our behavior is to observe the moral law. In a way to improve corporate governance and corporate social responsibilities, according to Mallor et al., 2010, one can modify the corporate governance model to educate, motivate, and supervise executives and thereby improve corporate social responsibility. Corporate governance is the structure used to direct and manage business and affairs of the company towards enhancing prosperity and corporate accountability. Corporate critics however did propose a wide rang of cures, all of which have been implemented to some degree and with varying degrees of success. Ethical codes: Ethic codes in a way have been adopted by many large corporations and several industries to guide executives and other employees. The Sarbanes-Oxley Act required that a public company discloses whether it has adopted a code of ethics for senior financial officers, and to disclose any changes in the code or waiver of the codes application. The codes can be viewed in two ways; one sees the codes as genuine efforts to foster ethical behavior within a firm or an industry while others view regards them as thinly disguised attempts to make the firm function better, to mislead the public into believing the firm behaves ethically, to prevent the passage of legislation that would impose stricter constraints on business, or to limit competition under the veil of ethical standards. Better ethical codes make clear that the corporation expects employees not to violate the law in a mistaken belief that loyalty to the corporation requires it. These kinds of codes work best, however, when a corporation also gives its employees an outlet for dealing with a superiors request to do an unethical act. Ethical instruction: Some corporate organizations require their employees to enroll in classes that teach ethical decision-making. The idea is that a manager trained in ethical conduct will recognize unethical actions before they are taken and deter herself and the corporation from the unethical acts. Majority of corporations in this present day express their dedication to ethical decision-making by an ethics officer who is not only responsible for ethical instruction, but also in charge of ethical supervision. The ethics officer tends to be a mentor or sounding board for all employees who face ethical issues. Greater Shareholder Role in Corporations: As shareholders are the vital stakeholders in a corporation in a capitalist economy, several corporate critics argue that businesses should be more attuned to shareholders ethical values and that shareholder control of the board of directors and executives should be increased. Evidence suggests that sources of ethical dilemmas will continue to increase. To understand this assessment, it will be useful to look at four categories of conditions influencing ethical behavior: global, social, organizational and individual. Global: A variety of global conditions affect our lives and our society; many are well-known to all of us. They include the increasing influence of cultural values substantially different from those of our Anglo-Saxon heritage; impacts of a complex global economy on local economic structures; and our rapidly increasing technological capacity to communicate and interact with the global community. Within the past few years we have watched the beginning of the development of a new world order that will be substantially different from our sense of world order developed over the last half century. Among the implications resulting from this picture, two are especially important: (1) we as a people no longer have a secure sense of our role in the world or our control over it; and (2) it has become increasingly acceptable, and even logical, to admit that we simply dont know what the appropriate response is. This era of rapid change has an indirect but important influence on our sense of ethi cal appropriateness. Social: A more direct source of ethical conflicts is social change. Change has been so rapid that some have argued that we have lost our sense of values or that we must seek better mechanisms to resolve value conflicts. This line of reasoning is incorrect for several reasons. First, value conflicts (and, therefore, ethical dilemmas) reflect our social and cultural fabric. Second, stakeholders have a relatively easy time gaining access to our policy making system; therefore, value conflicts are very visible and, frequently, cause our problem-solving process to forge slow, painful compromises. These processes continue to represent one of the great comparative advantages of our society and should not be changed without sober reflection. Organizational: Thirdly, we are witnessing rapid change in the nature and role of the public organization and concepts about administrative behavior. Organizational values are vital influence on the majority of us; thus far our organizational lives are becoming increasingly participatory, open, communicative and interactive. While I believe that the decline of organization hierarchy is among the more positive aspects of our society, it also signals a decline in another source of behavioral guidelines. Individual judgment, group dynamics and social interactions are replacing traditional rules of behavior dictated by the organization. We are also facing increasing conflicts between the bureaucratic ethos and the democratic ethos (Hejka-Ekins, 1998). The bureaucratic ethos includes such traditional organizational standards as efficiency, competence, loyalty and accountability. Individual: lastly, ethical anxieties are caused by changes at the individual level. In particular, individualism and materialism are at the present celebrated within major social institutions and have become a dominate ethos of the baby bust generation. Self-indulgence, greed, self-interest, and privatism are accepted components of the ethos of this generation (Frederickson, 1982). In order to improve the ethical climate of an organization, management must effectively communicate proper ethical behavior throughout the organization. Wimbush and Shephard (1984: 637-647) reported that businesses annually spend an estimated $40 billion on the ethical behavior problems. Thus, pointing to the fact that ethical dimension of employees behavior has a clear impact on the profitability of the company. It is generally accepted that customer satisfaction is one of the most important factors in successful business strategy. Although a company must continue to develop, alter and adapt products to keep pace with customers changing desires and preferences. It must also seek to develop long-term relationships with customers and its stakeholders. By focusing on customer satisfaction, a company continually deepens the customers dependence on the company, and as the customers confidence grows, the firm gains a better understanding of how to serve the customer so the relationship ma y endure. Successful businesses provide an opportunity for customer feedback, which can engage the customer in a cooperative problem solving. As is often pointed out, a happy customer will come back, but a disgruntled customer will tell others about his or her dissatisfaction with a company and discourage friends from dealing with it. When an organization has a strong ethical environment, it usually focuses on the core value of placing customers interest first. An ethical culture that focuses on customers incorporates the interests of all employees, suppliers, and other interested parties in decisions and actions. Employees working in an ethical environment support and contribute to the process of understanding customers demands and concerns. Ethical conduct towards customers builds a strong competitive position that has been shown to affect business performance and product innovation positively.

Pre-marital Sex in Making Laws for Clouds by Nick Earls :: essays research papers

‘Making laws for Clouds’ by author Nick Earls deals with the journey of an 18 year old boy who struggles to cope with the stresses of sexual desire, supporting his family and taking responsibility for his actions. The town in which he lives has strong religious ideals, so when he ‘weakens’ to the temptations of pre-marital sex he is socially outcast until the town either forgives of forgets his sin. Kane’s mother plays the antagonist when it comes to views on his relationship, she has a firm belief from her pervious experiences that the relationship cant work, she has been in the situation Kane is in and cant seem to believe that not all relationships will end the way that hers did, which was in divorce. Pre-marital sex is the main conflict in ‘Making laws for Clouds’, it involves the whole community as they deal with the crisis put upon them by two young members, Kane and Tanika, who gave in to ‘lust’ at the back of the local church bus. The community deals with it in a rather ‘sweep under the rug’ fashion with everybody knowing what happened but nobody talking about it. Father Steel is the one who comes across the pair and the one who mainly deals with it in the confines of the church. Father Steel doesn’t tell anyone about what happened but every one gathers for themselves what events took place. Harbros boat catching fire and the pre-marital sex aren’t related in the book but when the issues meet it leads to a friendly relationship between Kane and Tanika and Harbo. Harbo becomes a key character in the development in their relationship. Mr. Bell is an antagonist to Harbo, he works against the couple because he doesn’t li ke the idea of pre-marital sex because he has high religious beliefs. Yet another character is against the pair because Kane’s mother is against them. Each of the characters has a unique point of view on the situation that Kane and Tanika find them selves in. Kane and Tanika both know that this is a serious situation and they know that they could get into trouble but like all teenagers they think that they are different. They believe that because they love each other it will be alright, the church doesn’t agree with pre-marital sex which is why they find themselves in so much trouble. Harbo seems to be the only one the young couple’s side, he has a few discussions with Kane and Tanika during the novel, sharing his thoughts, ideas, life experiences and beliefs upon them.

There and Home Again Essay

1 Introduction This term I was asked to plan a holiday for me and my classmates to Beijing, China and at least one other place of my choice. The holiday is to be 21 days long. The second country chosen is Canada and the third is Kenya. 2 Flight Itinerary 2.1 Monday 23rd July depart Rockhampton at 8:00am arrive in Beijing at 11:40pm 2.2 Monday 28th July – Tues 29th July depart Beijing at 2:45pm arrive in Ottawa at 1:44pm 2.3 Monday 4thAugust-Wednesday 6th depart Ottawa at 9:30pm arrive in Nairobi 10:20am 2.4 Monday 11th August- Wednesday 13th August depart Nairobi at 4:40pm arrive in Rockhampton 11:50am 3 Beijing Day Planner 3.1 24th-26th July Departure: Daily Duration: 3 days (start from about 8:00 am and back around 5:00pm) Attraction: Day 1 – Badaling Great Wall, Ming tomb ; Day 2 – Tiananmen Square, Forbidden City, Temple of Heaven, Summer Palace; Day 3 – Hutong, Lama Temple, Panda Zoo and exterior view of Olympic Stadium. Tour Guide Language: English Feature: 3 days small Group tour is to enjoy Mutianyu Great Wall, Forbidden City, Temple of Heaven, Summer Palace, etc. Service include hotel – sightseeing transfer + English tour guide + lunch + entrance tickets. Figure : Great Wall of China 3.2 27th July Relax in hotel 28th-29th July are flying days 4 Ottawa Day Planner 4.1 30th July Day cruise with capital cruises on the Ottawa River to see spectacular views of some of the city’s attractions such as the Parliament Buildings, Canadian Museum of History (formerly Canadian Museum of Civilization), Rideau Falls a UNESCO world heritage site, and the Prime Minister’s residence. 4.2 31st July Relax in hotel 4.3 1st August Full day hop-on, hop-off bus tour with Gray Lines. Opportunity to Hop on and off at over 75 of Ottawa’s most famous city landmarks. 4.4 2nd August Enjoy a day walking around Ottawa and stop for lunch at one of the many cafes along the streets of Ottawa 4.5 3rd August Relax in hotel Figure : Parliament Hill Ottawa 4th-6th August are flying days 5 Nairobi Day Planner 5.1 7th-9th August 3 Days Masai Mara Camping Safari A fantastic 3 day Camping Safari to Kenya’s Masai Mara Reserve via the Great Rift Valley. 5.2 10th August Kickback, relax and unwind and get ready to go home. Figure Hilton hotel Narobi 10th-13th August are flying days Conclusion In order for the whole group to save for this holiday we would need to save $2400 a month which ends up being $590 per week for a year. In order to save up for just me I would need to save $874 per month for a year. It would be impractical for a highschool student my age to save up that much money in that shorter time. Bibliography Ottawa Canada’s capital, 2000, 4/05/14, http://www.ottawatourism.ca/en/visitors/what-to-do/tours-and-sightseeing Capital Cruises, 2007, 4/05/14, http://www.capitalcruisesottawa.com/en/sightseeing.html Beijing landscapes, 2002, 4/05/14, http://www.beijinglandscapes.com/beijing-tour.html Gray line, 2000, 4/05/14, http://www.grayline.com/tours/ottawa/discover-the-capital-1-day-hop-on-hop-off-5874_9/#.U2Ycn3mKC01

Internal Control and Shady Accounting Practices

Group 3 1. Why did accounting fraud occur at WorldCom? Fraud occurred at WorldCom for a variety of reasons. The senior executives had unchecked power because the board of directors were only figure heads, the ethics hot-line was nonfunctional, and in internal audit department did report to the appropriate link in the corporate chain to minimize fraud. These reasons, combined with a poor company culture, created the environment where fraud was able to become an acceptable business process. The senior executives at WorldCom had a â€Å"do it or else† attitude that was unchecked by any external force.That external force should have been the board of directors. Unfortunately the board of directors were being directed by the senior executives, given information about WorldCom that was disorganized to hide highly controversial and aggressive accounting techniques. These directors should have recognized they were being used and realized their agency to the stock holders to administer the oversight they were compensated to provide. The ethics hot-line, according to the case, while existed, was not known or trusted by the general population of employees at WorldCom.While many employees were aware of unethical activity, no of them felt that using this channel was a viable solution to addressing problems at WorldCom. Finally, the Internal audit department reported to the senior executive who ultimately steered their activity. If the executive was informed that internal audit was close to uncovering the unethical acts of managers, he directed their internal activity to other areas of the firm and blocked access to their department to the files that could expose the problem.If the internal audit department reported to the board of directors, better policing of executive activity would have been possible. All of these reasons had an element of poor culture in their makeup. Allowing senior executives to bullying their subordinates, inattentive directors, allowing for t he ethics channel to be nonfunctional, and accepting the unethical actions of seniors as the way things get done, ultimately doomed WorldCom to a spiral of actions that had the momentum of everyone's livelihood at stake, with no system in place to automatically apply the brakes to protect the shareholders. . What is the difference between earnings management (or earnings smoothing) and accounting fraud? What are the relevant criteria to use in distinguishing ethical from unethical accounting practices? I don't think there is a difference between earning smoothing and accounting fraud. Both practices intentionally mislead investors to alter their opinion of their holdings. Even if altering earning to smooth it out is mean only to put investors at ease, the underlying goal of smoothing is to change the perception of risk and volatility, which demand premiums in the market.Relevant criteria for distinguishing ethical from unethical accounting practices are if the accounting practice ma terially changes what the average investor values the company at and items addressed in GAAP and other accounting standards that are against conventional accounting guidelines actively used and unchallenged in the business landscape. 3. What internal processes or systems do you recommend to prevent fraudulent practices such as those present at WorldCom?Why were these practices not detected sooner? It appears WorldCom's fraudulent activities was uncovered by the companies own internal accounting department, indicating that at least one of five internal controls – â€Å"monitoring of controls† was functional. However, I believe if there were to have been periodic external auditing from impartial entities outside of WorldCom, the fraudulent activities would have been uncovered sooner than it occurred in 2005.Other internal control processes that could have prevented WorldCom's fraudulent activities and demise are; hiring competent, reliable and ethical personnel, particul arly in leadership positions that the company's board of trustees failed to accomplish, or perhaps were oblivious and complacent with the â€Å"red flag warnings† – falsely professed financial growth and profitability to increase the price of WorldCom's stock, and underreporting line costs (interconnection expenses with other telecommunication companies) by capitalizing these costs on the balance sheet rather than properly expensing them.In addition to inflating revenues with bogus accounting entries from corporate unallocated revenue accounts. I also believe there was failure with â€Å"assignment of duties†, or separation of duties if you will. Because, Mr. Ebber's seems to have been in control of his CFO – Sullivan, Controller – Myers, and Director of General Accounting – Yates. All of whom were unethical leaders at WorldCom that helped concoct â€Å"shady† accounting practices that led to the demise of WorldCom. It is my opinion t hat the above mentioned practices were not detected early enough due to micro management of lower taff employees by unethical leadership through autocratic style leadership, and environment that instilled fear in employees for fear of losing their jobs if any concerns were raised. An unfortunate reality that sadly exist in many big corporations, and even in governments. 4. What external processes or systems do you recommend to prevent and detect fraudulent practices such as those present at WorldCom? Were the directors on the board or the external auditors to be blamed?External auditing is an effective process that can in many ways prevent fraudulent activities within organizations, as the respective auditing teams have no â€Å"loyalty† to management or leadership within the company undergoing review by the external auditors. Retrospectively, I believe that the board of trustees of WorldCom at the time of the scandal would have wished that they had carefully looked into the background and leadership style of Mr. Ebber's and his co-conspirators to have checked for any signs of unethical behavior that many companies continue to blindly ignore.Barely about a year ago, Yahoo's former CEO was publicly humiliated, and subsequently fired by the company for â€Å"embellishing his academic credentials†. A very minor issue that could have been easily prevented, had the board of trustees of Yahoo looked thoroughly into Thompson's background by doing their due diligence. Unfortunately, the board of trustees of Yahoo failed at this task, much like what happened back in the late nineties with WorldCom and Ebber's. 5. You are a representative from the SEC.Briefly describe any sections of Sarbanes-Oxley Act of 2002 that you would cite to either Mr. Sullivan or Mr. Ebber's when they refuse to comply with your request for information. Under the federal regulations and securities Section 3(a)(47) of the Securities Exchange Act of 1934 (15 U. S. C. 78c(a)(47)), ref usal of any individual(s), or company(s) to conform to set accounting practices including external auditing by appropriate personnel (entities) will be liable to punitive actions set forth by federal legislations – up to or more than 25-years imprisonment and fines.Additionally, accounting and auditing practices by firms and individuals associated with a particular entity, or provide other services to any or such entities are prohibited to prevent conflict of interest, and accurate reporting of accounting practices. All of which were corporate infractions engaged in by Mr. Ebber's and his co-conspirators at WorldCom. 6. The E/R ratios of other telecommunications companies during the late 1990’s hovered around 50% or at best high 40%. If you were an investor, would you have invested in WorldCom? I probably would have.Despite the fact that WorldCom's E/R ratio seems to have been lower than its competitors , which should have raised a red flag in any potential investors m ind. However, like my decision to still invest in WorldCom despite its â€Å"too good to be E/R ratios†, many investors back then may have ignored what was obvious because WorldCom's â€Å"cooked books† from previous years all â€Å"seemed financially sound†, thanks to Ebber's and his co-conspirators great efforts at evading external auditors, fooling the public and its shareholders, and â€Å"muscling† junior employees to cover up its â€Å"shady accounting practices†.So naturally, any potential investor would probably back then have made the same mistake of investing in WorldCom. Obviously, not expensing largest operating expense â€Å"line costs† – incurred to gain access to other carriers networks to allow WorldCom to complete customers calls, as reported in its SEC filings will make its E/R ratio lower compared to WorldCom's competitors, resulting in an â€Å"inflated performance† – overstatement of earnings and und erstatement of operating expenses. 7. Contrast the roles of Vinson and Cooper in the case.Should Vinson have been charged with committing crime? According to the section â€Å"Resolution of Ethical Conflict† in the Institute of Management Accountants' Code of Ethics, how should employees proceed when under pressure by senior managers to engage in unethical behavior? As stated by James Comey, the U. S. attorney that prosecuted Ms. Vinson's case, â€Å"just following orders† is not an excuse to break the law. Why? Because, like many accounting professionals, Ms. Vinson knew right from wrong as it pertains to the prescriptive law of accounting ethical practices.In her own statement and admissions to prosecutors during the initial stages of her prosecution, and attempt to become a witness for the prosecution to gain leniency. (Pulliam, 2003). She (Ms. Vinson) stated that â€Å"each time she was ordered to â€Å"cook† or cover unethical accounting practices, she tho ught and hoped it will be the last time she caved in for such unscrupulous activities. Unfortunately, she kept on caving for years till the scandal was uncovered†. In light of the facts, and Ms.Vinson and Cooper's knowledge of right and wrong concerning the ethical practices of their chosen professions, it is appropriate for both of them to have been held liable for conspiring and engaging in such fraudulent activities as purported by WorldCom. As outlined by the IMA, accounting professionals in any company that are micro-managed, â€Å"muscled†, or coerced to engage in any fraudulent activities or witness any such improprieties, should first report the issue to an immediate supervisor that is not involve in such activities.In the event such option does not exist, one should then report the issue to a higher management staff that is not involved in such impropriety. it's also advisable for one to seek legal counseling with a private attorney about how to proceed in such matters n the event that reporting to an external body is imminent. Reference:PULLIAM, S. , Staff Reporter of THE WALL STREET JOURNAL Online, June 23, 2003| | Internal Control and Shady Accounting Practices Group 3 1. Why did accounting fraud occur at WorldCom? Fraud occurred at WorldCom for a variety of reasons. The senior executives had unchecked power because the board of directors were only figure heads, the ethics hot-line was nonfunctional, and in internal audit department did report to the appropriate link in the corporate chain to minimize fraud. These reasons, combined with a poor company culture, created the environment where fraud was able to become an acceptable business process. The senior executives at WorldCom had a â€Å"do it or else† attitude that was unchecked by any external force.That external force should have been the board of directors. Unfortunately the board of directors were being directed by the senior executives, given information about WorldCom that was disorganized to hide highly controversial and aggressive accounting techniques. These directors should have recognized they were being used and realized their agency to the stock holders to administer the oversight they were compensated to provide. The ethics hot-line, according to the case, while existed, was not known or trusted by the general population of employees at WorldCom.While many employees were aware of unethical activity, no of them felt that using this channel was a viable solution to addressing problems at WorldCom. Finally, the Internal audit department reported to the senior executive who ultimately steered their activity. If the executive was informed that internal audit was close to uncovering the unethical acts of managers, he directed their internal activity to other areas of the firm and blocked access to their department to the files that could expose the problem.If the internal audit department reported to the board of directors, better policing of executive activity would have been possible. All of these reasons had an element of poor culture in their makeup. Allowing senior executives to bullying their subordinates, inattentive directors, allowing for t he ethics channel to be nonfunctional, and accepting the unethical actions of seniors as the way things get done, ultimately doomed WorldCom to a spiral of actions that had the momentum of everyone's livelihood at stake, with no system in place to automatically apply the brakes to protect the shareholders. . What is the difference between earnings management (or earnings smoothing) and accounting fraud? What are the relevant criteria to use in distinguishing ethical from unethical accounting practices? I don't think there is a difference between earning smoothing and accounting fraud. Both practices intentionally mislead investors to alter their opinion of their holdings. Even if altering earning to smooth it out is mean only to put investors at ease, the underlying goal of smoothing is to change the perception of risk and volatility, which demand premiums in the market.Relevant criteria for distinguishing ethical from unethical accounting practices are if the accounting practice ma terially changes what the average investor values the company at and items addressed in GAAP and other accounting standards that are against conventional accounting guidelines actively used and unchallenged in the business landscape. 3. What internal processes or systems do you recommend to prevent fraudulent practices such as those present at WorldCom?Why were these practices not detected sooner? It appears WorldCom's fraudulent activities was uncovered by the companies own internal accounting department, indicating that at least one of five internal controls – â€Å"monitoring of controls† was functional. However, I believe if there were to have been periodic external auditing from impartial entities outside of WorldCom, the fraudulent activities would have been uncovered sooner than it occurred in 2005.Other internal control processes that could have prevented WorldCom's fraudulent activities and demise are; hiring competent, reliable and ethical personnel, particul arly in leadership positions that the company's board of trustees failed to accomplish, or perhaps were oblivious and complacent with the â€Å"red flag warnings† – falsely professed financial growth and profitability to increase the price of WorldCom's stock, and underreporting line costs (interconnection expenses with other telecommunication companies) by capitalizing these costs on the balance sheet rather than properly expensing them.In addition to inflating revenues with bogus accounting entries from corporate unallocated revenue accounts. I also believe there was failure with â€Å"assignment of duties†, or separation of duties if you will. Because, Mr. Ebber's seems to have been in control of his CFO – Sullivan, Controller – Myers, and Director of General Accounting – Yates. All of whom were unethical leaders at WorldCom that helped concoct â€Å"shady† accounting practices that led to the demise of WorldCom. It is my opinion t hat the above mentioned practices were not detected early enough due to micro management of lower taff employees by unethical leadership through autocratic style leadership, and environment that instilled fear in employees for fear of losing their jobs if any concerns were raised. An unfortunate reality that sadly exist in many big corporations, and even in governments. 4. What external processes or systems do you recommend to prevent and detect fraudulent practices such as those present at WorldCom? Were the directors on the board or the external auditors to be blamed?External auditing is an effective process that can in many ways prevent fraudulent activities within organizations, as the respective auditing teams have no â€Å"loyalty† to management or leadership within the company undergoing review by the external auditors. Retrospectively, I believe that the board of trustees of WorldCom at the time of the scandal would have wished that they had carefully looked into the background and leadership style of Mr. Ebber's and his co-conspirators to have checked for any signs of unethical behavior that many companies continue to blindly ignore.Barely about a year ago, Yahoo's former CEO was publicly humiliated, and subsequently fired by the company for â€Å"embellishing his academic credentials†. A very minor issue that could have been easily prevented, had the board of trustees of Yahoo looked thoroughly into Thompson's background by doing their due diligence. Unfortunately, the board of trustees of Yahoo failed at this task, much like what happened back in the late nineties with WorldCom and Ebber's. 5. You are a representative from the SEC.Briefly describe any sections of Sarbanes-Oxley Act of 2002 that you would cite to either Mr. Sullivan or Mr. Ebber's when they refuse to comply with your request for information. Under the federal regulations and securities Section 3(a)(47) of the Securities Exchange Act of 1934 (15 U. S. C. 78c(a)(47)), ref usal of any individual(s), or company(s) to conform to set accounting practices including external auditing by appropriate personnel (entities) will be liable to punitive actions set forth by federal legislations – up to or more than 25-years imprisonment and fines.Additionally, accounting and auditing practices by firms and individuals associated with a particular entity, or provide other services to any or such entities are prohibited to prevent conflict of interest, and accurate reporting of accounting practices. All of which were corporate infractions engaged in by Mr. Ebber's and his co-conspirators at WorldCom. 6. The E/R ratios of other telecommunications companies during the late 1990’s hovered around 50% or at best high 40%. If you were an investor, would you have invested in WorldCom? I probably would have.Despite the fact that WorldCom's E/R ratio seems to have been lower than its competitors , which should have raised a red flag in any potential investors m ind. However, like my decision to still invest in WorldCom despite its â€Å"too good to be E/R ratios†, many investors back then may have ignored what was obvious because WorldCom's â€Å"cooked books† from previous years all â€Å"seemed financially sound†, thanks to Ebber's and his co-conspirators great efforts at evading external auditors, fooling the public and its shareholders, and â€Å"muscling† junior employees to cover up its â€Å"shady accounting practices†.So naturally, any potential investor would probably back then have made the same mistake of investing in WorldCom. Obviously, not expensing largest operating expense â€Å"line costs† – incurred to gain access to other carriers networks to allow WorldCom to complete customers calls, as reported in its SEC filings will make its E/R ratio lower compared to WorldCom's competitors, resulting in an â€Å"inflated performance† – overstatement of earnings and und erstatement of operating expenses. 7. Contrast the roles of Vinson and Cooper in the case.Should Vinson have been charged with committing crime? According to the section â€Å"Resolution of Ethical Conflict† in the Institute of Management Accountants' Code of Ethics, how should employees proceed when under pressure by senior managers to engage in unethical behavior? As stated by James Comey, the U. S. attorney that prosecuted Ms. Vinson's case, â€Å"just following orders† is not an excuse to break the law. Why? Because, like many accounting professionals, Ms. Vinson knew right from wrong as it pertains to the prescriptive law of accounting ethical practices.In her own statement and admissions to prosecutors during the initial stages of her prosecution, and attempt to become a witness for the prosecution to gain leniency. (Pulliam, 2003). She (Ms. Vinson) stated that â€Å"each time she was ordered to â€Å"cook† or cover unethical accounting practices, she tho ught and hoped it will be the last time she caved in for such unscrupulous activities. Unfortunately, she kept on caving for years till the scandal was uncovered†. In light of the facts, and Ms.Vinson and Cooper's knowledge of right and wrong concerning the ethical practices of their chosen professions, it is appropriate for both of them to have been held liable for conspiring and engaging in such fraudulent activities as purported by WorldCom. As outlined by the IMA, accounting professionals in any company that are micro-managed, â€Å"muscled†, or coerced to engage in any fraudulent activities or witness any such improprieties, should first report the issue to an immediate supervisor that is not involve in such activities.In the event such option does not exist, one should then report the issue to a higher management staff that is not involved in such impropriety. it's also advisable for one to seek legal counseling with a private attorney about how to proceed in such matters n the event that reporting to an external body is imminent. Reference:PULLIAM, S. , Staff Reporter of THE WALL STREET JOURNAL Online, June 23, 2003| |

The Events Described in Seven Pillars of Wisdom by T. E. Lawrence

The Events Described in Seven Pillars of Wisdom by T. E. Lawrence Introduction Seven Pillars of Wisdom is a historical autobiography written by T. E. Lawrence. During the First World War, British instigated the revolt of Arabs against Turkey while she herself engaged Germany. The plan was for British to win the war from two fronts, though the idea was sold to the Arabs as a freedom campaign which Britain was apparently ready to support.Advertising We will write a custom essay sample on The Events Described in â€Å"Seven Pillars of Wisdom† by T. E. Lawrence specifically for you for only $16.05 $11/page Learn More Lawrence was part of this revolt, fighting alongside Arabs even though he was aware that his government was being dishonest with the Arabs. Chapters 41 through 58 detail Lawrence’s expedition’s imminent arrival at Akaba. Discussion Lawrence wrote that this story ought not to be read as the history of the Arab movement but as the history of him in it (Lawrence). The book therefore comprises of the feelings, experiences and reflections of Lawrence and all the other personalities around him who found themselves caught up in these historical moments. Quite a number of significant players are to be found between chapters 41 and 58 of the book since the Arab revolt involved many people. Foremost, there is Lawrence himself, the Briton charged, on behalf of the British government, to lead the expedition to take Akaba. Lawrence is aware of the insincerity of the British government in its dealings with the Arabs. For this reason, he is guilt ridden and hopes to make the revolt work not only to satisfy British interests but also to ultimately free the Arabs. Then, there are the Arabs, under the leadership of Auda Abu Tayi and Nasri. The Arabs are happy and excited at the prospect of freedom. They are painfully unaware of the immensity of the task they have undertaken and innocently trustful of the good intentions of the Britons. Unseen, but constantly felt, is the presence of the B ritish government and the depth of its insincerity. The chapters describe the passage of Lawrence’s expedition across the deserts and over the ranges of present day Saudi Arabia as it heads for Akaba. The town was deemed strategically important since it could hamper the approach of the British via the Mediterranean Sea as it portended a risk to the operations of the Suez Canal (Lawrence). Akaba, today known as Aqaba, is a strategic port town in present day Jordan, but was at the time under the control of the Turks. These chapters vividly describe the fatigue experienced by the men from riding camels all day; the discomfort of being scorched by the desert sun; the distress of being caught in the sand whirling in the desert wind; the thrill of the constant threat of coming under attack from unknown enemies; and under all this, the knowledge by Lawrence that the whole affair was a lie.Advertising Looking for essay on biography? Let's see if we can help you! Get your firs t paper with 15% OFF Learn More It being an account of individual experiences, the most important occurrence in the chosen chapters is the deep and profound guilt that is felt by Lawrence. Since the Arabs are deemed distrustful of institutions, and could therefore not be prevailed upon under the mere assurance of the British government to go to war, it had fallen upon Lawrence to be the face of the British to the Arabs. He had strived, and succeeded, in gaining their confidence. He however knew that the McMahon pledges and the Sykes-Picot treaty would come to naught once the war was won (Lawrence). In pushing forward with the expedition, he would be taking advantage of the trust the Arabs had in him, and by exploiting their thirst to free Syria and putting the lives of men at risk on the basis of false pretenses. Having assured them that â€Å"England kept her word in letter and spirit† after which the Arabs fell in line behind him, he felt nothing but consist ent and bitter shame (Lawrence). It is for the need to assuage this guilt that he endeavored to steer the Arab Revolt in such a fashion that it would become â€Å"its own success† and in so doing, Britain would be unable to deny the Arabs their moral earned rights (Lawrence). After the liberation of Syria, The General Syrian Congress arrived at the following resolutions detailing the wishes of Syrians: â€Å"that the people of Syria wanted their independence to be recognized; that they rejected the idea of political tutelage; that they rejected any attempts to divide Syria; and that they would be appreciative of foreign assistance for a limited period of time† (Glubb 106-7). France was however given the mandate to occupy Syria by the Supreme Council of Allies and the British army was soon replaced by that of the French. This was in spite of the fact that Syrians were strongly against foreign occupation. Consequently, Amir Feisal, who had fought in the Arab Revolt, rece ived an ultimatum demanding his recognition of the French mandate in Syria (Glubb 109). The contemporary significance of the events described in the chapters chosen arises from their causal relationship with the sequence of occurrences that followed. The areas in Syria that were occupied by the French happened to be the ones that had been promised to the Arabs in the Sykes-Picot Agreement (Glubb 112). The fact that Britain went back on its word on this particular instance, in view of the ensuing political upheaval in Syria for the subsequent decade, ended up in the Arabs being consistently suspicious of the intentions of the British. Even though no such claims had been made by British, it was felt by the Arabs that the original intention behind the British actions was for Syria to be divided up between France and Britain.Advertising We will write a custom essay sample on The Events Described in â€Å"Seven Pillars of Wisdom† by T. E. Lawrence specifically for you fo r only $16.05 $11/page Learn More The French occupation of Syria resulted in the eventual adoption of Western political and cultural concepts. The eventual adoption of democratic institutions of governance, though of a rather primary kind, and the increased imitation of Western culture by young generation Syrians led to the neglect of significant cultural practices. For instance, the apparent gradual loss of the traditional politeness and manners that has previously characterized the Syrian tradition has been attributed to this contact with western culture (Glubb 187). Conclusion The events described in â€Å"Seven Pillars of Wisdom† are of great significance. Through them we get insights behind the complex relationship between Britain and Arabs. It could be argued that in Lawrence is to be found the incarnation of the British sentiment towards Arabs after the events in Syria. The dishonesty of the British in their dealings with Arabs resulted in the French oc cupation of Syria and a deeply ingrained suspicion of Britons by Arabs. The British might not have been able to go against the occupation of Syria by France. What matters however, is that they had conspired to dishonor their promises to the Arabs even prior to the French entry into the equation. This suspicion reinforced by other historical occurrences, still characterizes how Arabs view not only the British but the whole of the Western world. Glubb, John. Britain and the Arabs: A Study of Fifty Years 1908 to 1958. London: J.B.G Ltd, 1959. Print. Lawrence, Thomas. â€Å"Seven Pillars of Wisdom.† 2011. Web. Project Gutenberg.

Politics in the Guilded Age essays

Politics in the Guilded Age essays Discuss Politics in the Gilded Age. Include major political events and issues, and the roles of the bloody shirt, corruption, patronage, and reform movements. The term Gilded Age was named for a Mark Twain book. It meant covered with gold, and was applied to this period as a whole. This was a period of corruption in sordid politics. The Republicans and Democrats didnt really have strong opposing beliefs during this period. The Republicans supported high tariffs and sound money. The Democrats supported lower tariffs and expanded currency. Both rural and urban classes supported each party. They worked with spoils and local issues. Both parties worked to please everyone, and to attract voters. Since both parties were so close in strength, it caused the elections to be fought harder. The Republicans used the waving of the bloody shirt tactic. This meant that they brought back the past in order to avoid the real issues. They portrayed the Democrats as rebel traitors. The Republicans were against alcohol. The Stalwarts were led by Senator Conkling from New York and were the hard core machine of elections. Senator Blaine led the Half-Breeds from Maine, and they wanted to be in control of it all. The mugwumps were a group that turned Democrat because of the corruption of the Republican presidential nominee, Senator Blaine. One president was Grant during this period. He was elected into office for his past war experience. He had little knowledge of politics, and depended on his fellow politicians. These men, in turn, involved in scandals to embezzle money from the government. One was the Great Mobilier scandal; it dealt with the Union Pacific Railroad. The Construction Company hired themselves at inflated prices to build railroad lines, and distributed shares of stock to congressmen. A scandal during Grants ...