Accounting Journal Reviews

Accounting Journal Reviews
Name:
Institution:
Professor:
Course:
Date Due:
This paper reviews four US accounting journals in relation to fraud, bonds, CPA license requirements, and GAAP. These journals include Managerial Auditing Journal, Journal of Accountancy, North American Actuarial Journal, and the Journal of Financial Economic Policy
Fraud
According to Hillison, Pacini and Sinason, (1999), employee fraud has become persistent in many organizations today. The scholars cited the well’s report generated in 1996 that claimed that fraud and abuse caused American organizations more than $400 per Annum. Another survey by KPMG Peat Marwick organizations established that 62% of organizations had experienced fraud in one form or the other. The Association of Certified Fraud Examiners (ACFE) also found out that the average loss per fraud incident for companies, which had fewer than one hundred workers, was $120,000 and that few organizations if any experienced no fraud. So in essence, employee fraud is a torn in the flesh for USA organizations.
Hillison et al (1999) also states that among the sources of fraud in a company includes, misstatements from deceptive financial reporting and misstatements arising from misuse of assets. Misstatements emanating from falsified accounts report are intentional or omissions of amounts to mislead users. Misstatements arising from misuse of assets include stealing of a firm’s assets. This type of fraud is mostly undertaken by employees rather than the management.
Majority of accounting personnel are in agreement that external auditors are not mandated to detect fraud in organizations. This is because, in many incidences, they are not aware of what happens behind closed doors of these organizations. Hillison et al also (1999) observes that an internal auditor in this case is best positioned to deal with these phenomena.
Bonds
A Journal by Santos (2009) was specifically written to determine whether the discipline by the bond market was based on an equal basis. This was concerning the demand of the same comparative risk over the business operations. In testing hypothesis, the journal compared differences in credit distributions in the main market of the banks, and firm bonds that were given out during recessions. Results of the study showed that, during low moments, investors requested a much higher risk premium. In addition, the paper established that the influence of recession was not consisted in all the banks. Moreover, its effects to more risky banks were greater to the more safe ones.
The finding of this journal further articulated that markets in USA do not discipline banks uniformly. Instead, it is more challenging especially with banks that are deemed riskier than those that were perceived as being safe.
In essence, Santos in his journal noted that credit distributions on bank bonds differ for different banks and depends on the economic conditions of the time. Moreover, the economical effects to these banks were also varied.
The results are significant especially for policy makers and bank regulators in making decisions with regard to the same. The authors recommend that proper programs, triggered by credit distribution on bank bonds should be put in place. This is meant to influence credit distribution. Additionally, the issue of bank bonds needs to be constructed with an idea of taking into consideration both the risk of the issuer and the economic situation at the moment. This is meant to achieve uniform degree of monitoring across all banks in USA. Finally, the authors also opine that banks s...