Corporate Trends And Accounting Scandals - 946 Words

‘The so called ‘new’ management accountant of recent times is quite possibly just a fantasy of new image seekers’ (Baldvinsdottir et al. 2010). Baldvinsdottir et al. (2010) argues that the concept of ‘new’ management accountants is just modern day attempt to cast of the old stereotypes of management accountants being ‘dull’ and ‘boring’ and trying to market them as something new and exciting. However, Burns Baldvinsdottir (2007) suggest that the roles of a management accountant have indeed changed and in turn they have turned more into ‘hybrid accountants’ with their roles becoming more ‘exiting’ and ‘consulting-based’ (Burns, J. Baldvinsdottir, G. 2007). In this essay I intend to show that although key drivers such as globalisation,†¦show more content†¦These traditional roles of a management accountant suggest that they were in fact just scorekeepers. Their primary job was to monitor and control to ensure financial targets were met. The last three decades have seen significant changes in the business world; the globalisation of business has seen drastic changes in the roles and information needs of top managers (Cooper, P., Dart, E. 2009). Globalisation means that firms are not only competing with others locally but now, as a result of faster and cheaper transport costs and real time information, they must also compete against others from around the world. This creates bigger markets and gives the consumer a wider choice, which results in shortened product life cycles and rapidly changing customer tastes (Burns, J. Baldvinsdottir, G. 2007). This diversification of markets sparks claims that financial information should be coupled with more non-financial information to help create strategy and deliver key insight into organisational management (Fraser, M. 2012). For example development of Total Quality Management systems and the increasing focus on Customer satisfaction requires this non-financial information to be incorporated into management accounting systems (Vaivio, J. 1999; Howell and Soucy 1987). This shift in information needs highlights the changing role of the management accountant. â€Å"Managers want people who can influence the score not simply report the score†, (Anastas, 2000, p.16). NoShow MoreRelatedLegal And Regulatory Environments And Ethics1712 Words   |  7 Pages1. Title: legal and Regulatory Environments and Ethics: Essential Components of a Fraud and Forensic Accounting Curriculum Forensic accounting is defined as the action of identifying, recording, settling, extracting, sorting, reporting, and verifying past financial data or other accounting activities for settling current or prospective legal disputes or using such past financial data for projecting future financial data to settle legal disputes. Forensic accountant are very important part of theRead MoreOverview of the Sarbanes-Oxley Act1068 Words   |  4 Pagescongressional regulatory response to the enormously damaging corporate scandals at WorldCom, the Arthur Anderson accounting group and most notoriously, Enron. Because of the damage done not only to the reputations of those corporations and to the American corporate community but also to the stockholders and people who lost life savings (people who lost 401-K investments in the scandal), Congress had to take action to try and avoid scandals like these in the future. Hence, the Sarbanes-Oxley Act wasRead MoreXerox Financial Fraud Case Analysis Ess ay1620 Words   |  7 Pagesprofit of $1.4 billion (SEC thought that should be $1.5 billion) during this period, which sparked an uproar in the capital markets. The financial fraud case of the Xerox and the World Communication (WorldCom) both became the hot issues after Enron’s scandal. 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Stakeholders use their fraud knowledge to contribute to the company’s Code of ConductRead MoreEthical Discernment: The Adelphia Scandal1655 Words   |  7 PagesEthical discernment Adelphia scandal Statistical analysis This paper relies on secondary data on a past phenomenon. It combines data from journal and other internet sources to bring out aspects of unethical behavior by Adelphias top executive. The analysis of data takes two ethical frameworks. Ethics involve an individuals moral judgments concerning what is right and/or wrong. Individuals or groups of people are responsible for making decisions in an organization (shaw, 2008). Decisions withinRead MoreThe Disadvantages of the Sarbanes-Oxley Act of 2002712 Words   |  3 PagesSarbanes-Oxley Act of 2002 Introduction The many financial scandals of the late 1990s and the early 21rst century served as the catalyst for U.S. lawmakers writing and ratifying the Sarbanes-Oxley Act of 2002 (SOX). Originally written to avert financial scandals including Enron, Tyco and others, SOX quickly became an impediment to the growth of smaller firms especially, who did not have the staff available to meet complex, often ill-defined requirements (Griffin, 2007). The intent of this analysisRead MoreThe Sarbanes Oxley Act Of 20021133 Words   |  5 Pagesdirectly affected by these scandals, many were indirectly affected as well due to the externalities caused by these greedy firms. The industry, for example, was to be untrusted. To try and instill trust back into customers, the Securities and Exchange Committee proposed and implemented a new law. This policy was put in place to regulate the accounting practices and to make them more honest. Titled the Sarbanes-Oxley Act of 2002 (enacted just after the WorldCom scand al), basically set rules and regulationsRead MoreSarbanes Oxley Federal Law1073 Words   |  5 Pagesrequirements for all public company boards, management and public accounting firms of the United States. The legalization was passed by U.S. Congress in 2002 in order to ensure that investors are protected from any fraudulent accounting activities that corporations could conduct such as tax avoidance, falsification of financial statements or payroll fraud. In the beginning of the 20th century, the business world faced accounting malpractice. This basically created a threat of losing the attractivenessRead MoreEnron : Year Of Scandal Essay1711 Words   |  7 PagesCost Accounting Project Paper Enron - year of scandal 2001 – Arthur Andersen Introduction As per various researches, it has been proved that today variety of issues are prevailing in our society and all of them should be properly catered so that no further issues can be raised and this will, in the end, helps in reshaping the entire structure of our society too. Therefore proper measures should be taken from the very start so that no negativity can be raised and this will eventually help in enhancingRead MoreExecutive Compensation and the Dramatic Increase in Corporate Accounting Scandals969 Words   |  4 PagesExecutive Compensation and the Dramatic Increase in Corporate Accounting Scandals According to one estimate, the total median CEO pay at the nation’s 350 largest publicly-owned firms grew from $2.7 million annually in 1995 to $6.8 million in 2005. The overall increase in CEO pay has outstripped inflation and the growth in non-managerial pay over the same period. Equally important is the trend in the composition of CEO performance-based pay which includes stock and stock option grants. Median