... the increased link between the companies. There are a number of suggestions that can help independence in general and would have helped in the Enron case. Firstly auditors should rotate; the profession must accept that long-term tenure of audit contracts is not healthy. Familiarity between client and auditor must be discouraged, long-standing links with big clients are especially good examples ... a contributory cause, to any audit failure". He then goes on to say that any further restriction on the provision of non-audit services will lead to a "narrowly focused auditing-only professio...

• Word Count: 1302
• Approx Pages: 5
• Grade Level: Undergraduate

... Sarbanes-Oxley Act The Public Company Oversight Board, mandated by the Sarbanes-Oxley Act, will take responsibility for accounting oversight out of the hands of the accounting profession (Fraudulent Financial Reporting - The Government and Accounting Profession React). This board will be responsible for inspecting public accounting firms and will have the power to impose sanctions of up to $2 million on corporations found ... ...

• Word Count: 2557
• Approx Pages: 10
• Grade Level: Undergraduate

... extensive revisions of the federal securities laws in the last 60 years. The Act, which applies in general to publicly held companies and their audit firms, dramatically affects the accounting profession. It impacts not just the largest accounting firms, but also any CPA actively working as an auditor of, or for, a publicly traded company. The SOA was passed in response to ... ...

• Word Count: 395
• Approx Pages: 2
• Grade Level: Undergraduate

... to students in business-ethics classes, says Stephen Hicks, Chairman of the philosophy department at Rockford College in Rockford, Ill. "I think business, as when pursuing science, education or art as a profession, is inherently moral, with ethics an integral part of doing good business. Business and ethics should be taught as adjuncts to each other, not as enemies," says Hicks, author of ... ...

• Word Count: 782
• Approx Pages: 3
• Grade Level: Undergraduate

... its books, Enron would be still be viable today. Malaysia's Iszudin Mohd Amin sums up the current feeling: "No thanks to these few bad apples, the dignity of the accounting profession has suffered in the wake of Enron. Now that the sour milk has spilt, how can we accountants regain our cherished reputation as reliable, uncorrupted watchdogs safeguarding the interests of ... ...

• Word Count: 1015
• Approx Pages: 4
• Grade Level: Undergraduate

... and the size of the company as commonly determined by sales revenue. This is in contrast to how salaries for other white-collar workers are usually determined - geographically and by profession. Annual incentives tend to be items such as cash bonuses intended to reward the achievement of key annual performance goals. Long-term incentives such as nonqualified stock options became very ... ...

• Word Count: 403
• Approx Pages: 2
• Grade Level: Graduate