Many firms have been under pressure to declassify their boards of directors. Why would investors want a board to be declassified? What are the advantages of a classified board? (Write in a minimum of 250 Words).
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- When Microsoft was founded, the company devoted very few resources to lobbying activities. After a high-profile antitrust case against it, however, the company began to lobby heavily. Why does it make financial sense for companies to invest in lobbyists?Crazy Eddie focused on making the company look extremely profitable just prior to the IPO. Why was this important? Does this make a client that is in the process of issuing an IPO a higher-risk client? Why or why not? Are there other risks to the auditor when an IPO is included in the engagement?Ernest and Young cleared Wirecard’s reputation back in 2008 and BaFin, the German financial regulator, continually supports Wirecard. Critics of Wirecard were investigated by BaFin. Suggest course of action (s) to prevent discrepancies in the financial resultsreporting to ensure that such scandal will not arise in the near future. Make sure your answers in paragraph not less than 500 words. Thank you
- Some accountants argue that they should be allowed to invest in a company's stock as long as they themselves aren't involved in working on the company's audit or consulting. What do you think of this idea?The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated?Assume that a corporate officer or other executive asks you, as the accountant for the company, to omit or leave out certain financial figures from the balance sheet that may paint the business in a bad light to the public and investors. Because the request does not involve a direct manipulation of numbers or records, would you agree to go along with the request? What ethical considerations exist for you in deciding on a course of action?
- .Identify some of the corporate scandals that took place in the recent past worldwide and discuss to what extent you think the scandals are a result of ineffective corporate governance.Executives of several companies believe that non-GAAP financials portray a more accurate picture of company performance. Although not legal, the use of non-GAAP financials has been controversial for years. In fact, the SEC published guidance regarding the misleading impact of the use of non-GAAP figuresLinks to an external site. in October of 2017. In your opinion, are the use of non-GAAP financial measures ethical? Please explain.Identify an example of a systematic risk faced by QANTAS Ltd. from the scenarios below. Select one: a. The CEO of QANTAS resigns unexpectedly. b. A lawsuit is taken out against the management for poor governance. c. The government decreases company tax for all registered corporations. d. The price of jet fuel dramatically accelerates.
- A current issue before the Financial Accounting Standards Board (FASB) is whether accounting standards should be moving from rule-based standards to principle-based standards. Rule-based standards provide specific measurements guidelines that are currently used to classify investment securities (for example, less than 20%, from 20% to 50%, and over 50%). Principle-based standards rely on general principles such as significant influence or control of a company, without any more detailed guidelines. You are the chief financial officer for a large corporation, and FASB just issued a request for comment on a proposed change from the current standard to a principle-based standard. Choose the standard that best meets the business need and justify your choice. Evaluate and defend whether your choice would change if you were an investor in the company.In 2001 and 2002 there were several high-profile US corporate collapses associated with misleading financial statements and accounting practices. Following these collapses, new laws were introduced to improve the quality of financial reporting. a) In your opinion, will further regulation prevent deliberately misleading reporting? Explain. b) Are additional laws likely to prevent corporate collapses? Why or why not? c) How important is the enforcement of financial reporting requirements in promoting high quality reporting?In a recent article published by the Economic Times, David Wilson, president and CEO of the Graduate Management Admission Council (GMAC) stated that "ethics cannot be taught in a business school. It has to be part of the DNA." Do you think that ethics can be taught in a traditional learning environment to prevent future accounting scandals? Where else might ethics be taught (if they can be taught at all)? Article Bhattacharya, S. (2013, March). Ethics Can't Be Taught in Business School: GMAC president David Wilson. The Economic Times. https://economictimes.indiatimes.com/opinion/interviews/ethics-cant-be-taught-in-business-school-gmac-president-david-wilson/articleshow/19051640.cms Please provide IN-TEXT Citations and credible references. Thanks!
