In 1992, Kaplan and Norton first published a paper about the Balanced Scorecard（BSC）. It was a huge success and BSC soon became very popular all over the world. Before BSC emerged, organizations usually use traditional methods of performance evaluation focused mainly on financial measures such as ROCE, sales and profits. BSC translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and managem...
Independence is fundamentally an attitude of mind for exercise of professional judgment and defined as an abstract concept that is easily subject to misinterpretation. Quality of integrity, objectivity, honesty, and impartiality are included in the concept to characterize independence. Independence is also a basic element to the reliability of auditor's reports. However, it does not mean that an auditor must be free of all economic, financial, and other relationships to comply with independen...
The paid amount for employees for their services. This transaction goes into the income statement report and it comes from the Human Resources Department. Operating Expense. It is the total amount that is spent to run a firm in a specific period of time. This transaction goes into the income statement report and it comes from the Operational Department. Equipments Are assets that the business will use in several years to produce their products. This transaction could be in the income statemen...
Enron was founded in 1985 by Kenneth lay as a natural gas company when the U.S. gas market was in the midst of deregulations. The company took advantage of this deregulation, by offering long term contracts with fixed prices to guarantee gas buyers stable prices for the duration of the contract since one of the side effects of these deregulations was exposing gas buyers to short term volatile gas prices. With this at hand the company grew to be the biggest seller of natural gas in North Ameri...
Abstract- Identifying frequent itemsets is one of the most important issues faced by the knowledge discovery and data mining community. There have been a number of excellent algorithms developed for extracting frequent itemsets in very large databases. Frequent itemset mining leads to the discovery of associations and correlations among items in large transactional or relational datasets. A problem with such a process is that the solution of interesting patterns has to be performed only on fr...
Messie, Glover, Prawitt & Boh, Margaret , 2007 stated that audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. In simple terms, audit risk is the risk that an auditor will issue an unqualified opinion when the financial statements contain material misstatement. ISA 200 states that auditor should plan and perform the audit to reduce audit risk to an acceptably low level that is consistent with the objective of...
What is the definition of standard costing? Standard costing is the system of using standard costs. Standard costing involves using the predetermined costs/standard costs to compare with the actual to find the difference or variance. Variance can be adverse (actual result is worse than standard) or favorable (actual result is better than standard). An adverse variance tells management that if everything else stays constant the company's actual profit will be less than planned. Whereas, a favo...
Chapter 7- Net Present Value and Other Investment Question 1 : List the methods that a firm can use to evaluate a potential investment. There are discounted and non-discounted cash-flow capital budgeting criteria to evaluate proposed investments. They are 1) Net present value: NPV is a discounted cash flow technique, which is the difference between an investment's market value and its cost. NPV = Present value of cash inflow- Present value of cash outflow The investment should be accepted if ...
Financial accountants and independent auditors commonly face challenging technical and ethical dilemmas while carrying out their professional responsibilities. This case profiles an accounting and financial reporting fraud orchestrated by the chief financial officer (CFO) of a major public company and his subordinates. The CFO, who was a CPA, took extreme measures to conceal the fraud from his company's audit committee and independent auditors. Despite those measures, the independent auditors...
Analysing the Audit Documentation from the PCAOB The Sarbanes-Oxley Act of 2002 created the Public Company Accounting Oversight Board (PCAOB), which became responsible for managing and regulating the public accounting profession of auditing. The PCAOB created a set of standards for preparing an audit report this paper will focus on Auditing Standard No.3-Audit Documentation. Standard number 3 requires that publicly traded companies that are registered with the Securities and Exchange Commissi...
