The Securities and Exchange Commission (SEC) regulates public companies The SEC has found that some of these companies have violated GAAP by using creative accounting practices to mislead investors and creditors regarding the health of their company Use the Internet or Strayer Library to research a recent accounting scandal within the last five (5) years where the SEC accused public companies of accounting irregularities Write a three to four (3 4) page paper in which you Analyze the audit report that the CPA firm issued Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws Justify your response Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden Defend your position Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities Provide a rationale for your response Use at least two (2) quality academic resources in this assignment Note Wikipedia and other Websites do not qualify as academic resources Your assignment must follow these formatting requirements Be typed, double spaced, using Times New Roman font (size 12), with one inch margins on all sides citations and references must follow APA or school specific format Check with your professor for any additional instructions Include a cover page containing the title of the assignment, the students name, the professors name, the course title, and the date The cover page and the reference page are not included in the required assignment page length The specific course learning outcomes associated with this assignment are Analyze the required generally accepted auditing standards, professional ethics, and legal liability of the auditor Assess how the Sarbanes Oxley Act has affected auditing Evaluate an audit report Evaluate objectives for conducting audits, and compare managements and auditors responsibilities Use technology and information resources to research issues in auditing Writeclearlyandconciselyaboutauditingusingproperwritingmechanics Rubric Points 240 Assignment 1 Auditors and Regulatory Oversight Criteria Unacceptable Below 60 F Meets Minimum Expectations 60 69 D Fair 70 79 C Proficient 80 89 B Exemplary 90 100 A 1 Analyze the audit report that the CPA firm issued Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws Justify your response Weight 20 Did not submit or incompletely analyzed the audit report that the CPA firm issued Did not submit or incompletely ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws Did not submit or incompletely justified your response Insufficiently analyzed the audit report that the CPA firm issued Insufficiently ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws Insufficiently justified your response Partially analyzed the audit report that the CPA firm issued Partially ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws Partially justified your response Satisfactorily analyzed the audit report that the CPA firm issued Satisfactorily ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws Satisfactorily justified your response Thoroughly analyzed the audit report that the CPA firm issued Thoroughly ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws Thoroughly justified your response 2 Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit Weight 15 Did not submit or incompletely speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit Insufficiently speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit Partially speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit Satisfactorily speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit Thoroughly speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit 3 Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden Defend your position Weight 20 Did not submit or incompletely compared the responsibility of both management and the auditor for financial reporting did not submit or incompletely gave your opinion as to which party should have the greater burden Did not submit or incompletely defended your position Insufficiently compared the responsibility of both management and the auditor for financial reporting insufficiently gave your opinion as to which party should have the greater burden Insufficiently defended your position Partially compared the responsibility of both management and the auditor for financial reporting partially gave your opinion as to which party should have the greater burden Partially defended your position Satisfactorily compared the responsibility of both management and the auditor for financial reporting satisfactorily gave your opinion as to which party should have the greater burden Satisfactorily defended your position Thoroughly compared the responsibility of both management and the auditor for financial reporting thoroughly gave your opinion as to which party should have the greater burden Thoroughly defended your position 4 Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities Provide a rationale for your response Weight 20 Did not submit or incompletely analyzed the sanctions available under SOX did not submit or incompletely recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities Did not submit or incompletely provided a rationale for your response Insufficiently analyzed the sanctions available under SOX insufficiently recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities Insufficiently provided a rationale for your response Partially analyzed the sanctions available under SOX partially recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities Partially provided a rationale for your response Satisfactorily analyzed the sanctions available under SOX satisfactorily recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities Satisfactorily provided a rationale for your response Thoroughly analyzed the sanctions available under SOX thoroughly recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities Thoroughly provided a rationale for your response 5 2 references (or number in the assignment) Weight 5 No references provided Does not meet the required number of references, and or references are of poor quality Meets the required number of references some or all references poor quality choices Meets number of required references all references high quality choices Exceeds number of required references all references high quality choices 6 Writing Mechanics, Grammar, and Formatting Weight 5 Serious and persistent errors in grammar, spelling, punctuation, or formatting Numerous errors in grammar, spelling, and punctuation Partially free of errors in grammar, spelling, punctuation, or formatting Mostly free of errors in grammar, spelling, punctuation, or formatting Error free or almost error free grammar, spelling, punctuation, or formatting 7 Appropriate use of APA in text citations and reference section (if applicable, might not apply to some 100 level courses such as ACC100) Weight 5 Lack of in text citations and or lack of reference section In text citations and references are given, but not in APA format In text citations and references are provided, but they are only partially formatted correctly in APA style Most in text citations and references are provided, and they are generally formatted correctly in APA style In text citations and references are error free or almost error free and consistently formatted correctly in APA style 8 Information Literacy Integration of Sources Weight 5 Serious errors in the integration of sources, such as intentional or accidental plagiarism, or failure to use in text citations Sources are rarely integrated using effective techniques of quoting, paraphrasing, and summarizing Sources are partially integrated using effective techniques of quoting, paraphrasing, and summarizing Sources are mostly integrated using effective techniques of quoting, paraphrasing, and summarizing Sources are consistently integrated using effective techniques of quoting, paraphrasing, and summarizing 9 Clarity and Coherence of Writing Weight 5 Information is confusing to the reader and fails to include reasons and evidence that logically support ideas Information is somewhat confusing with not enough reasons and evidence that logically support ideas Information is partially clear with minimal reasons and evidence that logically support ideas Information is mostly clear and generally supported with reasons and evidence that logically support ideas Information is provided in a clear, coherent, and consistent manner with reasons and evidence that logically support ideas

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The Securities and Exchange Commission (SEC) regulates public companies. The SEC has found that some of these companies have violated GAAP by using creative accounting

The Securities and Exchange Commission (SEC) regulates public companies. The SEC has found that some of these companies have violated GAAP by using creative accounting practices to mislead investors and creditors regarding the health of their company.

Use the Internet or Strayer Library to research a recent accounting scandal within the last five (5) years where the SEC accused public companies of accounting irregularities. Write a three to four (3-4) page paper in which you:

Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response.
Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.
Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden. Defend your position.
Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Provide a rationale for your response.
Use at least two (2) quality academic resources in this assignment.Note:Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the students name, the professors name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Analyze the required generally accepted auditing standards, professional ethics, and legal liability of the auditor.
Assess how the Sarbanes-Oxley Act has affected auditing.
Evaluate an audit report.
Evaluate objectives for conducting audits, and compare managements and auditors responsibilities.
Use technology and information resources to research issues in auditing.
Writeclearlyandconciselyaboutauditingusingproperwritingmechanics

Rubric:

Points: 240	Assignment 1: Auditors and Regulatory Oversight
Criteria	Unacceptable Below 60% F	Meets Minimum Expectations 60-69% D	Fair 70-79% C	Proficient 80-89% B	Exemplary 90-100% A
1. Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response. Weight: 20%	Did not submit or incompletely analyzed the audit report that the CPA firm issued. Did not submit or incompletely ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws. Did not submit or incompletely justified your response.	Insufficiently analyzed the audit report that the CPA firm issued. Insufficiently ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws. Insufficiently justified your response.	Partially analyzed the audit report that the CPA firm issued. Partially ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws. Partially justified your response.	Satisfactorily analyzed the audit report that the CPA firm issued. Satisfactorily ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws. Satisfactorily justified your response.	Thoroughly analyzed the audit report that the CPA firm issued. Thoroughly ascertained the legal liability to third parties who relied on financial statements under both common and federal securities laws. Thoroughly justified your response.
2. Speculate on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit. Weight: 15%	Did not submit or incompletely speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.	Insufficiently speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.	Partially speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.	Satisfactorily speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.	Thoroughly speculated on which statement of generally acceptable auditing standards (GAAS) that the company violated in performing the audit.
3. Compare the responsibility of both management and the auditor for financial reporting, and give your opinion as to which party should have the greater burden. Defend your position. Weight: 20%	Did not submit or incompletely compared the responsibility of both management and the auditor for financial reporting; did not submit or incompletely gave your opinion as to which party should have the greater burden. Did not submit or incompletely defended your position.	Insufficiently compared the responsibility of both management and the auditor for financial reporting; insufficiently gave your opinion as to which party should have the greater burden. Insufficiently defended your position.	Partially compared the responsibility of both management and the auditor for financial reporting; partially gave your opinion as to which party should have the greater burden. Partially defended your position.	Satisfactorily compared the responsibility of both management and the auditor for financial reporting; satisfactorily gave your opinion as to which party should have the greater burden. Satisfactorily defended your position.	Thoroughly compared the responsibility of both management and the auditor for financial reporting; thoroughly gave your opinion as to which party should have the greater burden. Thoroughly defended your position.
4. Analyze the sanctions available under SOX, and recommend the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Provide a rationale for your response. Weight: 20%	Did not submit or incompletely analyzed the sanctions available under SOX; did not submit or incompletely recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Did not submit or incompletely provided a rationale for your response.	Insufficiently analyzed the sanctions available under SOX; insufficiently recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Insufficiently provided a rationale for your response.	Partially analyzed the sanctions available under SOX; partially recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Partially provided a rationale for your response.	Satisfactorily analyzed the sanctions available under SOX; satisfactorily recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Satisfactorily provided a rationale for your response.	Thoroughly analyzed the sanctions available under SOX; thoroughly recommended the key action(s) that the PCAOB should take in order to hold management or the audit firm accountable for the accounting irregularities. Thoroughly provided a rationale for your response.
5.2 references (or number in the assignment) Weight: 5%	No references provided	Does not meet the required number of references, and / or references are of poor quality.	Meets the required number of references; some or all references poor quality choices.	Meets number of required references; all references high quality choices.	Exceeds number of required references; all references high quality choices.
6.Writing Mechanics, Grammar, and Formatting Weight: 5%	Serious and persistent errors in grammar, spelling, punctuation, or formatting.	Numerous errors in grammar, spelling, and punctuation.	Partially free of errors in grammar, spelling, punctuation, or formatting.	Mostly free of errors in grammar, spelling, punctuation, or formatting.	Error free or almost error free grammar, spelling, punctuation, or formatting.
7.Appropriate use of APA in-text citations and reference section (if applicable, might not apply to some 100 level courses such as ACC100) Weight: 5%	Lack of in-text citations and / or lack of reference section.	In-text citations and references are given, but not in APA format.	In-text citations and references are provided, but they are only partially formatted correctly in APA style.	Most in-text citations and references are provided, and they are generally formatted correctly in APA style.	In-text citations and references are error free or almost error free and consistently formatted correctly in APA style.
8.Information Literacy/Integration of Sources Weight: 5%	Serious errors in the integration of sources, such as intentional or accidental plagiarism, or failure to use in-text citations.	Sources are rarely integrated using effective techniques of quoting, paraphrasing, and summarizing.	Sources are partially integrated using effective techniques of quoting, paraphrasing, and summarizing.	Sources are mostly integrated using effective techniques of quoting, paraphrasing, and summarizing.	Sources are consistently integrated using effective techniques of quoting, paraphrasing, and summarizing.
9.Clarity and Coherence of Writing Weight: 5%	Information is confusing to the reader and fails to include reasons and evidence that logically support ideas.	Information is somewhat confusing with not enough reasons and evidence that logically support ideas.	Information is partially clear with minimal reasons and evidence that logically support ideas.	Information is mostly clear and generally supported with reasons and evidence that logically support ideas.	Information is provided in a clear, coherent, and consistent manner with reasons and evidence that logically support ideas.