San Jose State University Machine Learning in Financial Investment Discussion

Answer 1

Preliminary research indicates that internal auditors’ judgments are influenced by management and consequently risk assessment. This study examines the impact of tone on the risk assessment of fraud and the compatibility of internal auditors with external auditors. (Wang, 2017). When the results of an experiment involving the Internal Auditor 64 are found to be worse than management but poor at the top, it indicates that internal auditors are at risk of deliberate misinterpretation and that the agreement with external auditors reduces the risk of deliberate misstatement.

Cultural audits are a high-level audit and assess internal control and ethical decision-making. Such an audit plays a key role in assessing the effectiveness of internal control by management and directors and auditors to establish an ethical environment in the organization. For that purpose, the Board of Directors requires that the authors establish an external body once every three years. In addition, external auditors need to have a process of evaluating internal control and risk management profiles and assessing the impact on company culture. Similarly, internal auditors must adequately and appropriately review and coordinate their company’s risk management actions, as high-quality internal audit leads to effective RMP.

Recent corporate scandals have turned the attention of many voters toward corporate governance reform. Legal reforms that do not adequately address moral obligations are in vain. The moral character of directors is crucial. Directors are responsible for corporate ethics and compliance programs. Modeling and acting on top is an important part of their company’s overall ethical environment. (Schwartz et al., 2005) This role is strengthened by their legal obligations to track the financial performance of the company. The framework has several ethical values: (1) honesty; (2) integrity; (3) honesty; (4) liability; (5) justice; And (6) citizenship. The document concludes with a presentation of key issues to be resolved based on the Code of Conduct of Directors.

It is horizontal and interrelated and uses firm-level data from a survey of 62 financial services firms in Uganda. The results of effective RMPs, such as the quality of top management and the quality of the internal audit, are crucial. However, the high level of effective management is reduced when the quality of the internal audit is obtained. From agency theory, these findings support the idea that top management should monitor and reevaluate organizational risks as an effective RMP management method. (Kabuye et al., 2019) HealthSouth is an example of financial reporting crises over the past three years. In many cases, the role of management, and in particular the voice set by the CEO and CFO, has been instrumental in fraud and fraud. Wall Street magazine reported that several leaders tried to persuade Scrush to stop manipulation in the fall of 1997, but prosecutors said they were concerned and refused the Scrushy stock price. (“Using”, n.d.)

References

Kabuye, F., & Ntim, C. J. (2019). The impact of internal management and internal audit quality on risk management efficiency in the financial management sector. Cogent Business & Management, 6 (1), 1-21.

Schwartz, M. S., (2005). Above: Code of Conduct of Directors? Journal of Business Ethics, 58 (1), 79.https: //doi.org/10.1007/s10551-005-1390-y

Using Cultural Audit to rate high-end music – ProQuest. (n.d.). Retrieved 20 February 2020 from http://search.proquest.com/docview/212225362?pq-or…

Wang, I.Z., & Farger, N. (2017). The combination of tone at the top with the influence of an external auditor on the risk assessment of internal auditors’ fraud. Accounting and Finance, 57 (4), 1177-1202. https://doi.org/10.1111/acfi.12191

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Answer 2

The Commission on the Tread Method stated that “the tone at the top is an important component of the integrity of the financial reporting process.” Although top-down voice is widely regarded as an important ICT attendant of ethical behavior in organizations, we believe that recent research has ignored various conflicting ethical issues encountered in many organized work environments. In addition, in many organizations and professional associations, we propose that the decision-making processes used to resolve this conflict raise the tone at the bottom or at the top of the employee’s organization, and both approaches differ in tone. (Warren et al., 2015) Here we outline the comprehensive principles of integrated social contract theory to provide a multifaceted reconciliation process that emphasizes antagonistic ethics based on the characteristics of the organization and society. Using three methods of contextualization (overwork, employee safety, and customer protection), we demonstrate the potential of a multi-tonal comparison process over existing processes. Therefore, the Commission admits that the above background is an important factor in the preparation of correct (false) financial statements. In the same study, top management identified a financial management-oriented corporate environment or culture. From that point on, the perception from above has been integrated into the internal audit system and the audit standards committee of COSO.

The big voice at the top should make financial statements more transparent and transparent, and the regulator’s response depends on why they are pushing management. (Bradley Lail et al., 2015) The theory that agency theory works in the best interests of managers requires compliance, high oversight and desired behavior by reducing managerial desire. At the same time, management-oriented approach to maximize opportunities, look at managers as trusted caregivers and give them a large dispensary without heavy external oversight. In fact, the rules are based on the continuity between these two perspectives. To illustrate the relationship between compliance and opportunity, we present three conditions in the financial and tax reporting frameworks and examine the outcomes of those regulatory responses. We provide a conclusion on how each rule affects the organization.

The concepts of personal ethics (94%) and the Code of Professional Ethics (90%) are important factors that help a person to resist attempts to make significant changes in financial results. The results are like the above accent, the internal audit function, or the code of conduct. (“THE TONE AT THE TOP”, n.d.) As for ethics, no company is trying to be the next poster company. Although many discussions are based on corporate ethics, few studies have focused on the impact that accent has on accounting or significant change in results. To address this issue closely, the authors mainly investigated voice and its effects on accounting performance, as well as about the audit service and whether respondents had a written code of ethics. There has been much debate about how these three issues affect corporate ethics. For example, professional accounting firms such as the IMA, the American Institute of Certified Public Accountants (AICPA) and the Institute of Internal Auditors (IIA) say that management plays an important role in reducing the risk of accounting violations.

References

Bradley Lail. (2015). The Effect of Regulatory Approach on Tone at the Top. Journal of Business Ethics, 126 (1), 25.

Tone at the Top & Ethical Conduct Connection – ProQuest. (n.d.). Retrieved February 20, 2020 from https://search.proquest.com/docview/229786113?pq-o…

Warren, D. E., (2015). When there are moral tones in the top conflict: adopting priority rules to reconcile conflict tones. Business Ethics Quarterly, 25 (4), 559-582. https://doi.org/10.1017/beq.2015.40