Student. respond for Unit 1

docx

School

Colorado Technical University *

*We aren’t endorsed by this school

Course

460

Subject

Accounting

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by josie1225jh

1 Responses to My Peers Student’s Name Institutional Affiliations Course Name and Number Instructor’s Name Date

2 Responses to My Peers Response to Gustavo Ferreira Gustavo, your insightful overview of the Sarbanes-Oxley Act (SOX) and its impact on combating fraudulent activities within companies is appreciated. The emphasis on fraudulent misinterpretation, particularly regarding revenue inflation and the diverse methods employed, such as altering expenses for tax benefits or manipulating data across periods, offers a clear understanding of the complexities of financial fraud. I value your attention to the consequences of such frauds, affecting not only external users like investors but also leading to job losses and legal repercussions for perpetrators. The link to top accounting scandals you provided further supplements your points, illustrating the real-world implications of financial misconduct (Team, 2023). Your reference to SOX Section 404 underscores the pivotal role of internal controls in thwarting fraud. Notably, this provision not only mandates their establishment but also underscores the need for continuous monitoring, fostering a proactive stance. Given the dynamic landscape of financial schemes, I am delighted by your perspective on the efficacy of SOX in deterring fraudulent activities. However, do you perceive any potential drawbacks or challenges to implementing SOX? Basically, your post offers a thorough overview, establishing a valuable connection between your insights and course materials such as the Intermediate Accounting textbook. Response to Meylin Avila Meylin's comprehensive examination of financial manipulation forms and vulnerabilities in income statements, balance sheets, and cash flow statements provides significant insights into the

3 intricacies of fraudulent financial reporting. The study elucidates the pivotal role of SOX Section 404 in stipulating internal control requirements for financial reporting, emphasizing its contribution to transparency and reliability. After reviewing your post, I am interested in how external auditors address challenges in reviewing and attesting to a company's internal control assessment, particularly in light of potential conflicts of interest. I also seek examples from major accounting scandals to demonstrate the efficacy of SOX Section 404 in preventing fraud, as practical instances enhance theoretical comprehension. A notable similarity in our discussions is the shared emphasis on the importance of internal control systems and ethical cultures in preventing fraudulent financial reporting, underscoring the significance of SOX Section 404 ( Abei, 2021 ). While my classmate, Gustavo, focused on the consequences of fraud and its impacts on external users, your attention to analytical procedures and data analytics tools for detection offers a complementary perspective on preventive measures. Your thorough analysis deepened my comprehension of preventing and identifying fraudulent financial reporting. I seek additional insights into the practical implementation of SOX Section 404 and external audit procedures.

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4 References Abei, Y. A. (2021). Impact of Internal Control on Fraud Detection and Prevention in Microfinance Institutions. https://www.diva-portal.org/smash/record.jsf? pid=diva2%3A1578691&dswid=-8120 Team, C. (2023, October 23). Top accounting scandals. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/accounting/top-accounting-scandals/