ACC 573 DISCUSSION 1 WEEK 3

Part 1 of our week discussion questions require us to discuss Profitability. Please watch this Youtube lecture videos on “Profitability” to guide your understanding and response to our week discussion questions:

https://www.youtube.com/watch?v=Ri0XfJuru8s

https://www.youtube.com/watch?v=RpHluVpU74U

 

Profitability” Please respond to the following:

  • As part of the Sarbanes-Oxley Act, corporate officers are no longer able to “pass the buck” of responsibility for ensuring adequate controls over financial statements and reporting activities thus ensuring the accuracy of financial statements. Assess the adequacy of the provisions contained within the Act, indicating whether or not you believe requirements will improve the accuracy of financial statements and reporting. Provide support for your rationale.
  • Given the requirements contained in the Act for CEO and CFOs to certify the adequacy of controls and financial statement accuracy, evaluate your comfort level with this requirement should you become a CFO of a publically traded company. Provide support for your rationale.

PART 2 PLEASE RESPOND THE FOLLOWING QUESTION NO LESS THEN 350 WORDS (ORIGINAL WORK, NO PLAGIARISM, 1 Reference

Part 2 of our week discussion questions require us to discuss Financial Risks. Please watch this Youtube lecture videos on “Financial Risks” to guide your understanding and response to our week discussion questions:

https://www.youtube.com/watch?v=2xvA2M8jn_U

https://www.youtube.com/watch?v=L9BuXLgndcg

https://www.youtube.com/watch?v=7HoF3w7PAYw

“Financial Risk” Please respond to the following:

 

  • Based on the company you researched in the e-Activity, assess the financial “red flags” that would have indicated that the company may be having financial difficulty providing suggestions related to how management should address these problems. Provide support for your rationale.
  • Evaluate whether or not you are confident that the models used for predicting bankruptcy would have been adequate to predict the invariable bankruptcy of the company you researched. Provide evidence supporting your position.