ACCT 2200 Financial Accounting Essay Example | Topics and Well Written Essays - 500 words

ACCT 2200 Financial Accounting - Essay Example What does the phrase â€Å"our arguments suggest a pessimistic prognosis for would-be reformers† mean? The phrase means that in the light of arguments presented, it will be a bad omen for reforming planners. The shift in corporate ethics (described on pg 13) was from what to what? The shift in corporate ethics was from what is morally right to what is technically legal. Who benefits if auditors are biased? If auditors are biased, obviously the corrupt management will be benefited along with some benefit for auditors. Who suffers, if auditors appear to be, but are not in fact independent? If auditor's independence is compromised, the stakeholders will suffer. In 2000, the SEC proposed a rule that auditing firms should not be allowed to also provide consulting services to companies they are auditing. How did the accounting firms respond? The major accounting firms lobbied hard against the proposed limitations on their consulting work and dramatically increased their political contributions to the major political parties. What is the last sentence of the section â€Å"a brief history of audit regulation†? In legislation, the proverbial devil lurks in the details - details that special interests can often successfully influence as long as politicians project the image of decisive action to the broader public.