Professional Accountant assignment Essay Example | Topics and Well Written Essays - 2250 words

Professional Accountant assignment - Essay Example The method is highly structured, punitive and paternal. The intention of the Act is to ascertain that the process of financial reporting is done effectively. It also seeks to reorient accountants back to ethical ways. Furthermore, the approach focuses on maintaining corporate governance at the top. A principles-based approach is the domain of the UK. The Cadbury report defines the UK’s method of corporate governance. It states that corporate governance is a mechanism for directing and controlling companies (Cadbury, 1992). This document was later followed by others like the Combined Code. In essence, all these reports seek to place corporate governance responsibilities in the hands of company boards. An institution must alter corporate governance issues in accordance with their context. Furthermore, individuals are expected to make their choices known to their shareholders. Therefore, in the rules-based approach, as practiced in the United States, parties answer to external bo dies while in the principles-based approach, institutions answer to their shareholders (Tricker, 2008). While the United Kingdom places the responsibility of oversight on individual firms, the United States has an accounting oversight board which acts independently and ensures compliance. The US even has rules governing how the external auditor needs to behave. Conflict of interest is prohibited while appointment of new auditors is done under strict rules. The manner in which those audit reports are reported is also stipulated in law. Financial reporting is strictly enforced in the rules-based approach. Here, almost all parties have responsibilities under the law. Executive members must ensure accuracy and promptness of financial reports. Managers need to create internal controls for reporting while accountants must act honestly when reporting. Cases of alteration, falsification or concealment of information are all severely punished. In certain respects, punishment may be instituti on-wide. Here companies that do not ascribe to rules laid down by the Securities Exchange Commission will be delisted (SEC, 2003). Conversely in the United Kingdom, after a board has settled on a particular principle, it must comply with it or explain to its shareholders why it has not done so. Usually, the principles selected may emanate from the Cadbury Report, the Combined Code or general governance practice. The main reasoning behind this strategy is that corporate governance is not something to be policed. Instead, it should be done proactively by businesses. This demonstrates faith in organisations and their ability to practice these principles. The most glaring difference between these two systems is that in one punishment is clear. It is handled by specific bodies and the process by which oversight authorities come up with those punishments is well documented. These consequences also happen speedily, especially after non compliance in the US. Conversely, the effects of poor corporate governance are ambiguous in the principles-based approach. It is assumed that exposure of these unhealthy practices would damage the credibility of an organisation and hence its long term viability. Therefore, results may manifest after relatively long periods of time, and may not always be predictable. One key failure in the rules-based system is the tendency to establish very low standards of practice (McNamara & Banff, 2012). In order to ensure that members of the corporate community abide by rules in the US governance system, members have to agree on certain standards. In an effort to obtain consensus, these standards may be too low for concerned

U05a1 and u05a2 Essay Example | Topics and Well Written Essays - 1750 words

U05a1 and u05a2 - Essay Example 2. Why is Jupiter so much more dense than Saturn? Could a planet be smaller in size than Jupiter but greater in mass? Explain. Ans: Jupiter is closer to sun and has over 3 times more than the mass of Saturn. Jupiter is denser than that of Saturn because of two factors. They are (i). Jupiter has relatively larger gravitation field because of its mass and rotational pressures. (ii). Jupiter has denser core of rocks and other minerals. Jupiter has heavy metals in its interior. Hence it is denser than that of Saturn. Yes. There could be a planet smaller in size but greater in mass than that of Jupiter. Because Jupiter is mainly made up of gas, hence any planet slightly smaller in size but made of solid material would have more mass than Jupiter. And also building a planet with Hydrogen and Helium is like assembling the fluffy pillows one over the other. As the pillows are stacked one above the other the pillows at the bottom are compressed and hence their mutual gravitational force incre ases. Hence it slightly increases in its height as and when the stack size is increased but gets denser. Therefore the extra mass increases the density of the planet but smaller change in mass. 4. Why does Jupiter have such a strong magnetic field? Describe a few features of Jupiter’s magnetosphere. ... Jupiter’s magnetosphere traps far more charged particles than Earth’s magnetosphere. These particles contribute to auroras and also create belts of very intense radiation around Jupiter. This is so strong that it could damage the orbiting spacecraft. Jupiter’s magnetic field creates a magnetosphere that surrounds the planet as a shield which protects the planet from the solar wind. 6. Briefly describe Jupiter’s weather patterns and contrast them with those on the other jovian planets. What is the Great Red Spot? Ans: Jupiter’s atmosphere has several gases that condense to form clouds. Each of these gases condenses at a different temperature, leading to distinctive cloud layers at different altitudes. Jupiter has primarily three different cloud layers and Jupiter’s atmosphere is colder at higher altitudes. About 100 kilometers below the highest cloudtops, the temperatures are nearly earth-like And water can condense to form clouds. Higher up, the water clouds it is cold enough for a gas called ammonium hydrosulfide to condense into clouds which produces the dark colours of Jupiter. Higher still the temperature is so cold that ammonia condenses to make an upper layer of white clouds. Like the large hurricanes occasionally arise on Earth, Jupiter also has powerful storms. Spectroscopic observations (analysis of light) + calculations explains about the composition of clouds as follows: Ammonia (NH3) crystals in top layer. Ammonium hydrosulfide (NH4SH) crystals in middle layer. Water ice in lowest layer. The colors seem to be associated with temperature. White "zones" are higher and cooler. Dark "bands" are lower and warmer. Comparison with other atmosphere planets: Jupiter and Saturn have stripes of alternating color and wind direction. But Saturn's