and Exchange Commission (SEC) regulates public companies. The SEC has found that
some of these companies have violated GAAP by using creative
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.
a three to four (3-4) page paper in which you:
Analyze 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.
Speculate on which
statement of generally acceptable auditing standards (GAAS) that the
company violated in performing the audit.
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.
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
assignment must follow these formatting requirements:
Be 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 instructions.