Securities and Exchange Commission (SEC) regulates public companies.
The SEC has found that some of these companies have violated GAAP by
using creative accounting practices to mislead investors and creditors
regarding the health of their company.
Use the Internet or Strayer Library to research a recent accounting
scandal within the last five (5) years where the SEC accused public
companies of accounting irregularities.
Write a three to four (3-4) page paper in which you:
the audit report that the CPA firm issued. Ascertain the legal
liability to third parties who relied on financial statements under both
common and federal securities laws. Justify your response.
on which statement of generally acceptable auditing standards (GAAS)
that the company violated in performing the audit.
the responsibility of both management and the auditor for financial
reporting, and give your opinion as to which party should have the
greater burden. Defend your position.
the sanctions available under SOX, and recommend the key action(s) that
the PCAOB should take in order to hold management or the audit firm
accountable for the accounting irregularities. Provide a rationale for
- Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides; citations and references must follow APA
or school-specific format. Check with your professor for any additional
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
The specific course learning outcomes associated with this assignment are:
- Analyze the required generally accepted auditing standards, professional ethics, and legal liability of the auditor.
- Assess how the Sarbanes-Oxley Act has affected auditing.
- Evaluate an audit report.
- Evaluate objectives for conducting audits, and compare management’s and auditors’ responsibilities.
- Use technology and information resources to research issues in auditing.
- Write clearly and concisely about auditing using proper writing mechanics.