In recent years auditors are using unqualified comments to warn the companies to take good care of their bookkeeping process but the latter entities are not following the recommendations. The situation got worst with the passage of time and due to this reason public started to challenge the practices of national accounting organizations. Government responded to these challenges by tightening the regulations and ordered the auditors to give qualified objections upon repeated incidents of non-compliance from the companies. Nevertheless the public’s knowledge grew with the help of internet and other modern day technologies that resulted in a significant growth in the number of lawsuits against accounting firms. Recently internet and other technologies compensated for the producer-customer knowledge gap and therefore the organizations cannot fool general public by not following matching principle (Persons, 2011). It is suggested that organizations focus on enhancing their effectiveness and efficiency. But the major question arises that why do litigations happen against the accounting firms? The answer lies within the inability of accounting companies to uphold the accuracy of the financial statements. They only care about upholding and applying the Accepted Accounting Practices and fail to see their application for the sake of disguising the information. Accounting firms play a significant role in false overvaluation of the stocks and when people purchase the shares those corporate companies do not pay dividends. Thus the abovementioned condition is creating anger and hatred against the accounting companies in the general public. On the other side accounting firms’ credibility suffer significantly in reaction to the stockpiling of lawsuits against them in every nation’s major justice centers. Now this paper turns its focus towards analyzing the basic and fundamental needs for which the art and science of accounting and financial management were conceptualized in the first place. The elementary reason for developing accounting practices was to create and foster confidence and trust in the shareholders but apparently the financial management firms have forgotten the basic lesson and therefore they are working to save the skins of their employers in order to make some extra bucks so that they can fight semi-permanent global recession. In reality nonetheless they are not true to their profession that is causing them to face embarrassment in court of law. A recent case occurred when Ernst & Young, KPMG, and PricewaterhouseCoopers were sued by Simon Marketing, an offshoot of the Simon Worldwide. The lawsuit stated that the featured financial firms did not record and report the costs of distributing promotional games designed to promote McDonald’s worldwide. Previously, the food chain launched the games named ‘Monopoly’ and ‘Who-Wants-to-Be-a-Millionaire’, for promotional purposes. But the Simon Marketing’s management reacted severely to say the least because firstly Ernst & Young have never worked for them while KPMG stated that they were never informed of games questionable legitimacy and finally PricewaterhouseCoopers affirmed its resignation from the position of chief auditor. Given the aforementioned condition the management is trying to cover up something big because dragging previous auditing partners into a lawsuit is not such a good idea. Yet, it can be presumed that
Why Litigation Happens: A Case of Accounting Firms Name Institution Why Litigation Happens: A Case of Accounting Firms Introduction The accounting firms are operating in the filthiest industry of the world because it is normal for them to face litigation and prostitution every now and then…
Therefore, the following provisions, made for listing species as well as for the recovery plans and the designation of critical habitats for specific listed species. When taking actions the "Act" outlines procedures for federal agencies to follow that may further jeopardize listed species, which contains exceptions and exemptions.
He has attained a law license (Benjamin N. Cardozo School of Law), and a B.A. degree in Philosophy from the Binghamton University. The interviewee had worked for three years in a firm before starting his own. The interview remains in court in the morning until 1 pm after which, he gets in his office for the paper work.
Lawsuits in product liability fall under the category of tort laws and the litigation occurs for different reasons. Among the reasons include defects detected in the products that cause injuries, or other related damages to consumers (Friedman, 2004). These defects could occur either on the finished product of part of the product not functioning according to the prescription, provided by the manufacturer.
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There are several disputes that do not qualify for a judicial proceeding, so such cases are resolved through ADR. This writing will pay emphasis on both the traditional as well as modern ways of solving conflicts and the differences and similarities between them.
Climate change has become a workshop for the planet. The recent Conference of the Parties (COP/15) to the United Nations Framework Convention on Climate Change (UNFCCC) in Copenhagen, December 2009, concluded in a regime of strategic planning in finance, technology, operations, law and policy.i
The Act requires such entities or practitioners to use universal standards and an ethical code of system to process healthcare transactions.
The provisions regarding the enforcement of HIPAA, violations
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The purpose of this assignment is examine these high risk factors and offers a solution and implications.
The many uses of tobacco are cognizant and put the rest of the public at dangers of inhaling the toxins and poisons that
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