Ethics:
Ethics are the moral value that a person has to follow in society. Ethics are the principle that provides the knowledge of what is right, and what is wrong. Ethics definition is not same for every person, means one activity is right for one person but wrong in the eyes of another. Ethics depend on the human behavior and habits of the individual.
Ethical Path:
Ethical path means a path follow by an individual that is ethical. An ethical path is the way on which the individual finds some difficulty, but he will definitely achieve the goals.
Fraud triangle:
It is a model that contains three factors that increases the chances of fraud. Criminologist created the fraud triangle model. The three factors are opportunity, pressure and rationalization.
Prevention:
Prevention is the corrective action that takes before indulge in any wrong situation. For example, if there is a rule in the premises, do not smoke, but the employees are not taking it seriously the management can take some preventive action so that the fire chances reduce in the organization.
Internal controls:
The control of the internal business affairs of the company is internal control. There should be proper control for sales, purchase, distribution of goods, and on other business areas. The auditor of the company firstly checks the internal control of the company.
Sarbanes-Oxley Act:
The act is basically made for the protection of the rights of investors and there should be transparency in the business transactions. This is US act. To reduce the chances of malpractices the US government builds this act.
Audit service:
The service provided by the auditor to the client is audit services.An audit is an activity performs by the auditor. An Auditor is one who checks the books of accounts of the company and gives a remark on it. By his professional qualification he provides service to the society.
Dodd-Frank Act:
This is the act that made for the financial industry sector. The Act passed by the Barack Obama on July21, 2010.The act provides. To maintain the financial stability in the
Clawback:
When the employer takes his money back it is clawback. It is basically a contract between the employer and the employee that in certain condition employee has to return the money receives from an employer.
To identify: The term or phrase that matches the given description.
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Chapter 1 Solutions
Financial and Managerial Accounting
- PLEASE HELParrow_forwardOne company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno chatgpAccumulated Depreciation will appear as a deduction within the section of the balance sheet labeled as Property, Plant and Equipment. True Falsearrow_forward
- No ai Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle. True Falsearrow_forwardno aiOne company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno ai An asset's useful life is the same as its physical life? True Falsearrow_forward
- no ai Depreciation Expense reflects an allocation of an asset's original cost rather than an allocation based on the economic value that is being consumed. True Falsearrow_forwardThe purpose of depreciation is to have the balance sheet report the current value of an asset. True Falsearrow_forwardDepreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return. True Falsearrow_forward
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