We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Professional Accountant assignment - Essay Example

Comments (0) Cite this document
Comparison of the UK approach to governance with the US approach United States corporations abide by a rules-based approach to corporate governance. Most of them rely on the Sarbanes Oxley Act of 2002. …
Download paper
Professional Accountant assignment
Read TextPreview

Extract of sample
Professional Accountant assignment

The method is highly structured, punitive and paternal. The intention of the Act is to ascertain that the process of financial reporting is done effectively. It also seeks to reorient accountants back to ethical ways. Furthermore, the approach focuses on maintaining corporate governance at the top. A principles-based approach is the domain of the UK. The Cadbury report defines the UK’s method of corporate governance. It states that corporate governance is a mechanism for directing and controlling companies (Cadbury, 1992). This document was later followed by others like the Combined Code. In essence, all these reports seek to place corporate governance responsibilities in the hands of company boards. An institution must alter corporate governance issues in accordance with their context. Furthermore, individuals are expected to make their choices known to their shareholders. Therefore, in the rules-based approach, as practiced in the United States, parties answer to external bodies while in the principles-based approach, institutions answer to their shareholders (Tricker, 2008). While the United Kingdom places the responsibility of oversight on individual firms, the United States has an accounting oversight board which acts independently and ensures compliance. The US even has rules governing how the external auditor needs to behave. Conflict of interest is prohibited while appointment of new auditors is done under strict rules. The manner in which those audit reports are reported is also stipulated in law. Financial reporting is strictly enforced in the rules-based approach. Here, almost all parties have responsibilities under the law. Executive members must ensure accuracy and promptness of financial reports. Managers need to create internal controls for reporting while accountants must act honestly when reporting. Cases of alteration, falsification or concealment of information are all severely punished. In certain respects, punishment may be institution-wide. Here companies that do not ascribe to rules laid down by the Securities Exchange Commission will be delisted (SEC, 2003). Conversely in the United Kingdom, after a board has settled on a particular principle, it must comply with it or explain to its shareholders why it has not done so. Usually, the principles selected may emanate from the Cadbury Report, the Combined Code or general governance practice. The main reasoning behind this strategy is that corporate governance is not something to be policed. Instead, it should be done proactively by businesses. This demonstrates faith in organisations and their ability to practice these principles. The most glaring difference between these two systems is that in one punishment is clear. It is handled by specific bodies and the process by which oversight authorities come up with those punishments is well documented. These consequences also happen speedily, especially after non compliance in the US. Conversely, the effects of poor corporate governance are ambiguous in the principles-based approach. It is assumed that exposure of these unhealthy practices would damage the credibility of an organisation and hence its long term viability. Therefore, results may manifest after relatively long periods of time, and may not always be predictable. One key failure in the rules-based system is the tendency to establish very low standards of practice (McNamara & Banff, 2012). In order to ensure that members of the corporate community abide by rules in the US governance system, members have to agree on certain standards. In an effort to obtain consensus, these standards may be too low for concerned ... Read More
Cite this document
  • APA
  • MLA
(“Professional Accountant assignment Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/105650-2013-professional-accountant-assignment
(Professional Accountant Assignment Essay Example | Topics and Well Written Essays - 2250 Words)
“Professional Accountant Assignment Essay Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.net/finance-accounting/105650-2013-professional-accountant-assignment.
  • Cited: 0 times
Comments (0)
Click to create a comment
Professional Accountant
These codes have evolved to what is known today as the UK Corporate Governance Code, the latest of which was released in 2010. The UK Corporate Governance Code 2010 sets principles out the principles of ideal and best practices in corporate governance. The UK Corporate Governance Code of 2010 is required by the Financial Services Authority listing rules to get all listed companies on the Stock Exchange to use the UK Corporate Governance Code.
10 Pages(2500 words)Essay
The professional accountant
For this topic, I chose ACM Shipping Group, PLC since it is a large company that has worldwide operations. Necessarily, the company also needs large capital to fund its numerous investments. ACM is a publicly registered company in UK that started operations in 1982.
5 Pages(1250 words)Essay
Charge of the Light Brigade
Although the battles that had thus far been fought were somewhat indecisive, and our officers continually told us that a decisive battle that would win this war and send us all back home was in the near future. Because of this, each of us expected that this battle would take place at any time.
3 Pages(750 words)Essay
Tax Accountant
Especially, pursuing the career of tax accountant is an appreciable task as it ensures the overall development of the individual. It also prepares one to retain capabilities required to bear out the maximum benefit of opportunities. Although the job of tax accountant is
2 Pages(500 words)Essay
The case of James Alderson, an accountant who blew the whistle on the hospital that he worked in, is a wonderful example of a man who knew the odds and yet was determined to do what was right. The principle of accurate and correct disclosure was being violated
1 Pages(250 words)Essay
Professional writing assignment
These annual conferences tend to deliver a complete learning as well as networking experience to the Corporate Executive Officers (CEOs) which principally comprises of keynote
3 Pages(750 words)Essay
Professional Writing Sample Assignment
First and the foremost quality of excellent business writing is its briefness. Precise business writing is less time consuming and more effective as compared to
2 Pages(500 words)Essay
Cover letter
Discipline Investigation is my best assignment because it discusses my passion for accounting and my desire to become a professional accountant. The Rhetorical Analysis is my second best assignment. It provides me with a
1 Pages(250 words)Essay
The Professional Accountant Assignment
The cooperative failed to have enough numbers with regard to the non executive members of the boards. The original structure of governance had too many directors but failed in that it did not have
8 Pages(2000 words)Essay
Professional Development Resource Assignment
Consequently, some of these ambitious businessmen and managers have developed numerous detailed and purposeful training on efficient and appropriate leadership development plans. Leadership development training equips aspiring and existing leaders with the rightful
2 Pages(500 words)Essay
Let us find you another Essay on topic Professional Accountant assignment for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us