Professional Accountant assignment - Essay Example

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. ...
Download paper


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. …
Author : celestino16
Download 2

Related Essays

Professional Accounting Skills For BusinessDecisions
12 pages (3012 words) Essay
Professional Accountant
10 pages (2510 words) Essay
Code of Professional Ethics and Conduct
8 pages (2008 words) Essay
Finance and Accounting Individual Assignment
5 pages (1255 words) Essay
Assignment 3: Tax Credits
8 pages (2008 words) Research Paper
the professional accountant
5 pages (1255 words) Essay
analyzing an accountant system
8 pages (2008 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!