Write a paper in which discuss the following: 1. Evaluate the critical elements of accounting quality. Compare
Question:
Write a paper in which discuss the following:
1. Evaluate the critical elements of accounting quality. Compare and contrast balance sheet quality with earnings quality. Explain why both are important to financial statement readers.
2. Share one example of earnings management, explaining how it might be perpetrated and ways that investors might detect such behavior.
3. Examine the role of the executive leadership team (e.g., CEO and CFO) in establishing an ethical environment and corporate culture that promotes high quality financial reporting.
4. Assess the potential consequences for a publicly traded company when accounting quality is inadequate. Explain how management might minimize those consequences.
5. Evaluate the requirements of the Sarbanes-Oxley Act regarding accounting quality, indicating whether the current provisions are adequate to protect stakeholders. Support your position.
6. Use at least five (5) quality academic resources in this assignment.
• Assess the framework and reporting requirements of the Securities and Exchange Commission (SEC), U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and the Sarbanes-Oxley Act for publicly traded companies.
• Evaluate the quality of accounting information for an organization, including the economic content and earnings sustainability. Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.Financial Accounting
ISBN: 978-0324645576
10th edition
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice