Why is Technology Important in Business? An Original Article from eHow.
It is a pleasure to be celebrating the first day of spring with you and your accounting students and colleagues here at the Kogod School of Business at American University. I also commend you for the high-caliber interns you have provided the Public Company Accounting Oversight Board.
David McGarry and Richard Reitman each worked with me and did an outstanding job, and I have received similar complimentary feedback with respect to Lee Shriki and Phil Black, who are interns in our Office of Research and Analysis.
I have been asked to speak about the enactment of the Sarbanes-Oxley Act, provide an overview of the PCAOB, and share with you some of my priorities for the coming year.
Before I continue, our Board policy requires me to inform you that the views I express today are my own, and do not necessarily reflect the views of the other Board members or the staff of the Board. The Importance of Auditing to the Functioning of our Capital Markets At the outset I want to congratulate those of you who have chosen accounting and auditing as Which firms are important to a field of study.
Accounting and auditing professionals serve an absolutely vital role in our capital markets. Transparent, informative and accurate financial reporting are the lifeblood of the capital markets and are essential for investors to make informed decisions as to how to allocate their capital.
Without accurate and reliable corporate disclosures and financial statements — and competent auditors to audit them — our competitive free market system could not function properly.
American households invest their savings in the capital markets — either through mutual funds or by directly buying shares of public companies — to build wealth or fund important expenditures such as college education for their children, home purchases, and their retirement. According to the most recent U.
Census Bureau survey, 42 percent of households have k or thrift savings plan accounts with money invested in the markets.
Under our federal securities laws, auditors enjoy a unique franchise because every public company that raises money through our capital markets or has a security listed on an exchange must hire an independent public accountant to audit its financial statements.
The Supreme Court, in United States v. Arthur Young, described the audit as a "public watchdog" function that "demands that the accountant maintain total independence from the client at all times and requires complete fidelity to the public trust. Sarbanes during the consideration and passage of that legislation.
Congress acted in July in the aftermath of the accounting and auditing scandals at Enron and WorldCom. Accounting gimmickry at those companies included phony earnings, undisclosed related party transactions, and inflated revenues, followed by massive restatements.
Investors lost confidence in our markets following these failures.
Between April and July the stock market dropped more than 22 percent — or some 2, points. At the very first hearing of the Senate Banking Committee, Chairman Sarbanes outlined the main issues he wished to focus on.
In my view, the most critical result of the Sarbanes-Oxley Act is that it ended the auditing profession's framework of self-regulation by creating the PCAOB to oversee the profession. Additionally, the Act focused on the need for heightened independence, objectivity and professional skepticism on the part of auditors, as well as on enhanced transparency and accountability on the part of auditors and corporate management.
Overview of the PCAOB The mission of the PCAOB as spelled out in Section of the Act is "to protect the interests of investors … in the preparation of informative, accurate and independent audit reports…" Basically, we work to ensure that audits are conducted properly by independent auditors.
The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to the federal securities laws, to promote investor protection. In addition to overseeing the audits of public companies and broker-dealers, the duties of the Board include: Registering public accounting firms that prepare audit reports for public companies and broker-dealers, including those that are listed on U.
Establishing standards that relate to the profession—including auditing, quality control, ethics, independence and other standards.Sep 03, · The Most Prestigious Consulting Firms In Susan Adams Forbes Staff.
I’m a senior editor in charge of Forbes’ education coverage. Why is prestige important . As the Internet and Google is ever-changing, so is the behavior of its users and their needs which are currently shifting from global to locally-oriented searches.
Sponsor Firms are very important at the GBX for a number of reasons. They help manage the application and listing process for launching a token sale, serve as a layer of scrutiny, take care of.
As of March 6, , there were more than 2, accounting firms registered with the PCAOB, including more than non-U.S. firms, representing 86 countries. Establishing standards that relate to the profession—including auditing, quality control, ethics, independence and other standards.
Frequently, maximization of profits is regarded as the proper objective of the firm, but it is not as inclusive a goal as that of maximizing shareholder wealth.
For one thing, total profits are not as important as earnings per share. Sep 03, · kaja-net.com, the career website, has released a ranking of the most prestigious consulting firms.
A little like the Oscars, which turns to the movie industry to tally its votes, Vault’s list comes.