Auditing. The series of scandals caused a general crisis of confidence Essay

Auditing. The series of scandals caused a general crisis of confidence in the integrity of the entire system of corporate accoun - Essay Example Thereafter the author described financial scandals as those corporate scandals that involve misappropriation and misuse of money or economic resources. The chronicles of business history are filled with errors related to accounting, judgements, financial management and financial skulduggery. Over the last few decades unscrupulous entrepreneurs have been heavily involved in financial scandals where they allegedly diverted funds from one stated use to another, paid dividends out of borrowed money or capital, traded stocks on the basis of insider information as well as concealed vital information regarding those stocks, practiced creative account thereby altering the company’s records so on and so forth. Auditing failure has been a major concern over the last two decades with case of Enron and WorldCom coming into the limelight. According to Tackett, Wolf and Claypool (2004), a severe distortion in the financial statements that has not been reported in the audit report can be ter med as audit failure. Thus the auditor has committed a serious mistake while conducting the auditing process (Arens, 2002). Normally, auditing failure would not happen if an auditor is abide by the Generally Accepted Auditing Standards despite the fact whether the financial statement is accurate or fair. ... Thirdly, auditing failure occurs when the auditor is lured into committing such frauds by the company. Lastly, auditing failure might occur if the audit officer may commit fraud intentionally because of having some private relationship with the client beyond a certain level which is normally not expected in normal audit between independent parties. The following sections will highlight the integrity in the System of Corporate Accountability thereby commenting on the role of auditors and their effectiveness in the auditing process. The issues which undermine the credibility of audit reports will also be discussed. Thereafter, the changes that have been made in the auditing regulation will be explained followed by an explanation of the corporate governance framework that exists in Parmalat. Henceforth, the issues of audit reporting will be discussed and appropriate conclusions will be drawn. Integrity in the System of Corporate Accountability Corporate accountability is of utmost impor tance in debates around social issues, ethics and businesses (Brenkert, 2004). Accountability generally refers to the reliability and authenticity in the financial accounts reporting related to the financial status of any corporation. Integrity in the corporate accountability system should be maintained in order to reduce fraudulent activity within the financial reporting system. In the latter half of the twentieth century, the social and environmental issues were also brought under the financial accountability making them responsible for the environmental and social records. Linkage between the accountability and the integration of the Corporate Social Responsibility within the businesses helped to take the Business for Social responsibility to greater heights. It

What is Cultural Diversity Essay Example | Topics and Well Written Essays - 750 words

What is Cultural Diversity - Essay Example Globalization and culture diversity are two different phenomena, but these are closely interlinked with each other in terms of popularity and influences on different societies of the world. Various scholars and intellectuals have given their views about notion of cultural diversity. In this paper, we shall analyze what cultural diversity is about, how it is practiced along with the thoughts of Professor Sarat Maharaj, who has highlighted the concept of culture diversity with respect to his personal perceptions. The phenomenon of cultural diversity is not simple to understand because it involves contribution of a lot of people, their territorial boundaries, power, and racial, religious, and ethnical practices (Diller, 2010). Emergence of mixed beliefs, trends, fashions, practices, thoughts, legal or illegal immigration and overpopulation are some important factors behind the concept of culture diversity. However, it is an era of technology in which globalization is the strongest force that works behind every notion in today`s century (Maharaj, 2007). Sarat Maharaj is a visual art professor of Lund University, who has critically explained notion of cultural diversity mainly in terms of its relation with art culture and history. Sarat Maharaj`s lecture on cultural diversity is based on the emergence of different practices and notions that eventually became important part of diverse culture with the passage of time. Additionally, he has highlighted critical aspects of the phenomena and practices associated with the global diversity (Maharaj, 2007). He has focused that cultural diversity has now become an important term for the governmental bodies in order to run and maintain state system efficiently with the upgrading demands of time and individuals living in diverse cultural era (Maharaj, 2007). His lecture is important as it includes insight regarding the concept of cultural diversity through wider-spectrum. He has used various important terms to interlink with t he notion of cultural diversity such as origin of the diversity, revisionary concepts, modernity, colonial power and different racial and ethnic groups other than white people (Maharaj, 2007). Further, his lecture is considered important because he has motivated listeners to understand a revolutionary turn in the history of diversity and has compelled people to think about backdrops of the practices that emerged through diverse culture notions. Multiculturalism is another term that is used to define cultural diversity. Fundamentally, it is believed that culture is a set of values, norms, customs and traditions, which is practiced by the groups of people (Baer, 2004). When people belonging to different cultures come closer to each other while living in a specific region, they start sharing their thoughts and practices both. This trend gives rise to multiculturalism. The word multiculturalism has been associated with cultural diversity because globalization and technology have brought various regions and different individuals closer to each other (Baer, 2004). Global distances have been shortened and communication has transformed into its fastest possible form. Cultural diversity is about ethical standards of social interactions with members of other societies. Today, cultural diversity is practiced everywhere most specifically in large and strong states of the world (Diller, 2010). For instance, countries like the US and UK, these are two powerful nations of the world with strong economy and well-structured state system. People across the globe tend to migrate in these countries in