FINANCIAL ACCOUNTING
Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. Economic events are activities related to the production and distribution of goods and services in an organization. Yet recently, many accounting scandals, questionable bankruptcies, and overall mistrust of financial reporting procedures have affected the accounting profession as so many new accounting irregularities have taken place. The definition of 'irregularity' in Structural Funds terms is very wide and includes any administrative or financial mismanagement that comes about either by act or by omission whether or not there is an actual loss of funds. Accounting irregularities reported by Xerox, Enron, Global Crossing and WorldCom have raised the general awareness of accounting practices involving the recognition of revenues and profits.
Recently, the issue that rises upon with Xerox is to do with accounting irregularities. Xerox Corporation is a $15.7 billion technology and services enterprise that helps businesses deploy smart document management strategies and find better ways to work.
SEC
SEC-RF53JXA
Harvey Pitt has served as a Commissioner of the U....Its intent is to constantly lead with innovative technologies, products and solutions that customers can depend upon to improve business results. Basically, a complaint was sent to the US Securities and Exchange Commission (SEC) which is the regulatory body that is involved, that the Xerox at the Stamford, Conn., company was defrauding investors. This was a wide ranging, four year scheme to defraud investors. Xerox, after being confronted by the SEC didn't deny or disagree to the complaints. Xerox agreed to most of the penalties and had settled them as well. The basic problem that existed for the accounting irregularity is that Xerox controlled the equipment revenue and profit it reported using a number of accounting actions. Xerox has now agreed to appoint a committee composed entirely of outside directors to review its accounting...
Accounting Scandals
You've written a fine essay about the accounting scandals which have been happening with alarming frequency in recent years. It seems that financial frauds proliferate when economic times get tough. While it is true that the SEC has overall regulatory authority over the financial reporting of US corporations, it doesn't have the resources to adequately do its job, which is typical for a government agency subject to budget constraints. If the problem is going to be addressed, the company's external auditors must accept a greater role in ferreting out fraud than they have been willing to accept in the past. Auditing standards for public accounting firms need to be strengthened. Also, greater oversight must be exercised over the outside auditors to discourage any more scandals such as happened at Arthur Andersen.
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