Since they have different approaches, the two accounting methods for customer loyalty programs can result in significantly varying accounting. Conceptual Approach: As previously mentioned, IFRS and GAAP differ in their conceptual approaches where the former is principles-based while the latter is rules-based (Forgeas, 2008)
1 and 0.7% of yearly revenue to transit from GAAP to the global accounting rules (Johnson, 2009)
Due to these arguments and concerns, financial executives within the country and around the world wonder if the United States will ever become a complete IFRS convert. Actually, some financial executives and managers have stated that IFRS adoption faces some resistance at the Securities and Exchange Commission (Quinn, n
This will in turn enable investors from across the globe to invest in the best financial instruments anywhere in the world other than their own country or region. As companies in various countries adopt these accounting rules, there have been recent initiatives to educate people about them including professionals, students, and investors (Smith, 2009)
A.: Since January 1, 2011, International Financial Reporting Standards (IFRS) has been the required framework for most of the financial markets across the globe (Stahlin, Harris, Arnold & Kinkela, 2013)
Notably, these opponents do not necessarily propose the rejection of a global accounting standard that serves as a universal financial language regardless of the validity of their argument. In addition, the removal of differing accounting systems through IFRS adoption may exert pressure on countries where strict financial reporting standards have been lacking (Subler, 2012)
However, the United States Securities and Exchange Commission is yet to determine whether to convert or converge with International Financial Reporting Standards. Actually, SEC announced that it would make the final decision in 2011, which implies that the earliest year that IFRS would be implemented through conversion would be 2015 (Wright & Hobbs, 2010, p
, Inc.) The company's management as AMETEK observes in its 2012 annual report is responsible for not only the preparation but also the integrity of the financial statements and other related information (AMETEK, Inc
6 AMETEK makes use of accrual-base accounting. Under this approach, "revenues are recorded at the point of sale and costs when they are incurred, not necessarily when a firm receives or pays out cash" (Graham and Smart, 2011, p
In the words of the author, "a current ratio of at least 1.0 indicates that the firm has sufficient current assets on hand to cover its obligations due in the coming year" (Weil, 2012, p
As per Albrecht and Albrecht (2003), the fraud signs are divided into six categories: 1) accounting anomaly; (2) internal administrative weaknesses; (3) analytical irregularities; (4) overgenerous lifestyles; (5) abnormal behaviors; and (6) tips and objections. While it's a fact that the listed signs of frauds (red flags) are logical divisions of the numerous factors involved, yet it's still debated that their presence might not indicate the fraud sometimes (Albrecht and Romney 1986) and after thorough study of the case, the objective of irregularity comes out to revolved around reasons that are not necessarily related to financial fraud
As per Albrecht and Albrecht (2003), the fraud signs are divided into six categories: 1) accounting anomaly; (2) internal administrative weaknesses; (3) analytical irregularities; (4) overgenerous lifestyles; (5) abnormal behaviors; and (6) tips and objections. While it's a fact that the listed signs of frauds (red flags) are logical divisions of the numerous factors involved, yet it's still debated that their presence might not indicate the fraud sometimes (Albrecht and Romney 1986) and after thorough study of the case, the objective of irregularity comes out to revolved around reasons that are not necessarily related to financial fraud
As per Albrecht and Albrecht (2003), the fraud signs are divided into six categories: 1) accounting anomaly; (2) internal administrative weaknesses; (3) analytical irregularities; (4) overgenerous lifestyles; (5) abnormal behaviors; and (6) tips and objections. While it's a fact that the listed signs of frauds (red flags) are logical divisions of the numerous factors involved, yet it's still debated that their presence might not indicate the fraud sometimes (Albrecht and Romney 1986) and after thorough study of the case, the objective of irregularity comes out to revolved around reasons that are not necessarily related to financial fraud
The Sarbanes-Oxley Act In spite of their importance, there is hardly any audit and processes of internal control which can give an absolute guarantee that all fraudulent behavior can be found out or prevented (Albrecht and Albrecht, 2004). It is easy enough to avoid or bypass audits and internal controls, and just the threat of being found out is not enough to prevent fraud without tough consequences (Beccaria, 1963; Williams and Hawkins, 1986)
SOX have placed very strict standards for the audit committees of companies. Like for instance, as per the principles of SOX an audit committee should comprise of independent directors who should be headed by an expert to keep an eye on their audit work (He and Ho, 2011)
99. Finally, the conclusion will be made by highlighting few other helpful techniques like regression and analytical applications to detect frauds (Hogan, et al
Similar findings related to the connection between fraud and insider trading was reported by Summers and Sweeney (1998). Recent studies have revealed that a number of firms have been mixed up in intentional backdating of stock options (Lie 2005)
While it's a fact that the listed signs of frauds (red flags) are logical divisions of the numerous factors involved, yet it's still debated that their presence might not indicate the fraud sometimes (Albrecht and Romney 1986) and after thorough study of the case, the objective of irregularity comes out to revolved around reasons that are not necessarily related to financial fraud. Formulating an auditing plan, combining the prospect and weight of risk by integrating these factors and developing a fraud detection system are all quite difficult activities to achieve and sustain (Patterson and Noel 2003)
99 consists of seven important parts: (1) SAS No. 99 requires the auditors to have "brainstorming" sessions to determine if the company could be at risk towards financial statement fraud; (2) it is required of the auditor to gather information necessary towards identifying potential exposure towards financial statement management, by questioning the management, internal auditors, audit committee, and other employees working in the company, and perform analytical processes; (3) auditors are expected to make use of the collected information and determine the risks which could result in a significant misstatement, and they are also given the instructions regarding how to do this; (4) the auditor is expected to examine the company's internal control processes and all associated risks; (5) the auditor has to check the risk of significant misstatement because of fraud in the audit, and then reevaluate it in the end stage of the audit; (6) auditors are guided on how to inform the management and audit committee about fraud and its associated risks; and (7) the auditors' documentation prerequisites have been described (Ramos, 2003)
Because of these reasons, fraud researchers have suggested other methods which could affect a person's chances of committing fraud. These include lessening pressure on employees to show profits, upping the severity of punishments and understanding that personal traits could increase the chances of someone committing fraud (Wells, 2004a, 2004b)