Accounting Scandals Essay

629 words - 3 pages

Summary of “Canadians' rapid debt accumulation to slow next year as housing market cools”
In the news “Canadians' rapid debt accumulation to slow next year as housing market cools”, the writer reports that low interest rates and an active housing market accelerate the accumulation of Canada's total residential mortgage debt this year. Recent housing market data shows a downturn in the market. There is lesser activity in resale home market. Home builders also reduce construction activity to avoid falling demand in houses. The cooling real-estate market decelerates the growth of the accumulation of Canada’s residential mortgage debt. The Central Bank will in increase interest rates in the middle of next year. A survey indicates about 84 percent Canadians could afford at least a $ 300 0rm 30 percent increase in their monthly mortgage payment, the average monthly mortgage payment is about $ 1,025.

Reasons ...view middle of the document...

S increasing employment rate indicates a slight recovery of North American economy. The U.S. economy affect significantly on Canada’s economy. 151,000 new jobs created in the U.S in October though the unemployment rate remains at 9,6 percent. The U.S government plan to inject an additional US$ 600 billion into the economy. The addition of extra money indicates the economy recovers slightly but it is still far from fully recovered. In Canada, the new creation of 3000 job in October make Canada’s unemployment rate drop to 7.9 percent last month. Full-time job increased while part-time jobs declined. Jobs increase mainly in the goods-producing sector and decrease in the service sector. Increasing employment rate and hourly wages indicates that Canada economy gradually recovers.
Reasons for choosing this article:
1) This article reflects the increase of jobs in the U.S and Canada
2) This article mentions slight recovery of the North American economy
3) This article implies the trend of global economy recovery

Summary of “Canadian dollar closes higher, backs away from parity with U.S. dollar”
In the news “Canadian dollar closes higher, backs away from parity with U.S. dollar” The Canadian dollar goes strongly against U.S dollar because of the release of the strong U.S employment news and the worse than expected Canadian jobs creation data for October. The U.S added 151,000 jobs instead of an expected gain of 70,000 though the unemployment rate was unchanged at 9.6 per cent. In Canada, Statistics Canada reported that 3,000 new jobs created, which is below the expected estimate of 15,000 jobs. The announcement of the U.S Federal Reserve that it will purchase US$ 600 billion government bond keeps the Canadian dollar going a little more stronger. The higher commodity price is also another drive of the strong Canadian dollars
Reasons for choosing this article:
1) This article mentions the strength of the Canadian dollar and how the U.S economy affect the Canadian dollar.
2) This article tells slight recovery of the North American economy and the steps the U.S government takes to bolster the economy
3) This article implies the trend of global economy recovery

Other Essays Like Accounting Scandals

Sarbanes Oxley Essay

1024 words - 5 pages The Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; July 30, 2002) is a United States federal law passed in response to a number of major corporate and accounting scandals involving prominent companies in the United States. This examination of the Sarbanes- Oxley Act of 2002, will address the

Mangaers and Accountinf Essay

633 words - 3 pages ’ capability and will to challenge questionable dealings by corporate managers. In financial information practitioners are two groups: accountants or financial reports providers and auditor or financial reports confirmers. Recent accounting events in the world specially scandals of some companies such as WorldCom, Enron… which lead to the approval of Sarbanes–Oxley Act demonstrate that managers, accountants and auditors have failed alongside of the benefit

Ethical Risks and Threats in the Accounting Profession

2316 words - 10 pages remained employed by the company they are auditing. They must consider how to best apply accounting standards even when faced with issues that could cause a company to face a significant loss or even be discontinued. Due to several accounting scandals within the profession, critics of accountants have stated that when asked by a client "what does two plus two equal?" the accountant would be likely to respond "what would you like it to be?". This

Double-Dealing

1782 words - 8 pages | Double-dealing | A review of fraudsters and the impact | | Nick Andreolas | 11/30/2015 | ACCT604 Ruizhen Hardin This paper summarizes accounting fraud in the United States. I explain why each aspect of communication skills and report writing is vital to an accountant’s professional career. | Table of Contents I. Executive Summary 1 II. Introduction 1 III. Review of Literature 1 IV. Analysis 1 V. Recommendations 1

Sarbanes-Oxley Act Article Analysis

921 words - 4 pages The Sarbanes Oxley Act was signed into law by President Bush in 2002. This Act was in direct response to the accounting scandals of the early 2000s. A time that I remember very well, because I’d just graduated from college into the accounting industry, and it was in a total uproar. The Sarbanes Oxley Act (SOX) ordered a number of reforms to enhance corporate responsibility, financial disclosure, and to fight corporate and accounting fraud. This

Reporting Practices and Ethics Standards

969 words - 4 pages companies and to protect investors (Sarbanes-Oxley, 2007). This act was passed because of corporate accounting scandals such as Enron. This act protects investors who are usually the worst ones affected by phony profits and revenue. The SOC Act has 11 titles, i.e., major subdivisions. The SOX Act also created a oversight board for accounting firms that audit publicly traded companies. This board is called The Public Accounting Oversight

Ethics Essay

601 words - 3 pages protected so as the risk of wrong information is minimum. Accounting Scandals Ethics in accounting has been highlighted by the reports of several high profile accounting scandals over the years, such as WorldCom, Phar-Mar, AIG and Enron. The Enron scandal resulted in both the energy giant and their auditor, Arthur Andersen to collapse.[3] This is a classic example of what Gregg Easterbrook describes as “an ethic of service is at war with a

Demise of Enron Corporation® and Worldcom®

654 words - 3 pages RUNNING: Demise of Enron Corporation® and WorldCom® Demise of Enron Corporation® and WorldCom® Your Name October 31st, 2012 FIN/486 Instructor Enron Corporation and WorldCom In the last decade, two powerful American companies, Enron Corporation and WorldCom, have become the models of accounting corporate fraud. The Enron Corporation was founded in 1985 by Kenneth Law in Omaha, Nebraska. The company later moved its operation to

Effects of Technology on the Accounting Profession

989 words - 4 pages accountants work on every day. The new job that I work at attempts to use many forms of information systems to increase efficiency as well. In financial accounting, the scandals over the past several years have caused many more requirements for companies to release their financial data and do so accurately. The Sarbanes-Oxley act is one of the most important acts to be enforced in recent history. It requires that Chief Executive Officer’s sign off on the

Research Paper

1574 words - 7 pages the popular rules-based accounting - especially in response to accounting scandals, such as Enron and WorldCom, the current way of accounting has been under a great deal of criticism. Rules-based accounting is basically a list of detailed rules that must be followed when preparing financial statements. Many accountants favor the prospect of using rules-based standards, because in the absence of rules they could be brought to court if their

Corporate Transparency

1610 words - 7 pages the general public due to recent accounting and corporate scandals, during 2001 and 2002 in particular. These accounting scandals have provoked regulators and investors alike to raise serious questions about the credibility of corporate financial reporting and the ethical implications impacting international economic vitality and social wellbeing. Purpose and scope: The objective of this report is to use specific cases in which transparency was

Related Papers

Synthesis Accounting Scandals Essay

1796 words - 8 pages Baluyot, Krishia Mae E. BSAV-2A Scandals that Rocked the Accounting World ❖ Enron Scandal The Enron Corporation led to bankruptcy Last October 2001. It is an American energy company based in Huston, Texas, and the termination of Arthur Andersen, which was one of the biggest audit and accountancy partnerships in the world. Enron is also attributed as the biggest audit failure. Enron was founded in 1985 by Kenneth Lay after

Is Ethics The Reason Accounting Scandals Exist

2122 words - 9 pages Running Head: Is Ethics The Main Reason For Accounting Scandals? Is Ethics The Most Important Reason Behind Years of Accounting Scandals? Joshua A. Williams DeVry University Is Ethics The Main Reason For Accounting Scandals? Ethics: Is It The Most Important Reason Behind Years of Accounting Scandals? Ethics is a term that refers to a code or moral system that provides criteria for evaluating right and wrong (Spiceland, Spe

Word Article Essay

642 words - 3 pages auditors Ernst & Young were fully aware of this questionable classification. (http://scholarly-research.kversity.com/2012/10/examples-of-accounting-scandals-due-to.html ) Unethical Practices in accounting are seeing every time and it is not something that we are not familiar. After the Sarbanes-Oxley act of 2002, most corporations are taking in considerations the effects of unethical behaviors. The responsibilities of this type of misconduct

Accountant Essay

1074 words - 5 pages VI CONCLUSION Summary In the book Creative Accounting, Fraud and International Accounting Scandals, by Michael J. Jones, the author provides several important topics with regard to identifying and also correcting fraud. Some of the areas that the author describes is understanding the fraud environment. He also advise creative accounting methods and procedures to redress the fraud. Finally, once those methods are used, the author suggest to