ACCOUNTING Essay Example | Topics and Well Written Essays - 500 words

ACCOUNTING - Essay Example The organization entered into illegal accounting territory when $5.6 million of products that had been shipped early were returned. As a means of avoiding the revenue setbacks, the organization decided to conceal them by dispersing them between four departments, in effect allowing the organization to largely reflect the earlier robust financial statements. These accounting problems impacted the company’s financial statements as they erroneously reflected robust sales and revenue figures when in reality the payments for these products had not been received. In further concealing the true incoming revenues through dispersing losses among departments, the financial statements did not accurately reflect sales figures for the period, as this practice concealed a 6% loss. Two primary employees at Cutter & Buck were sanctioned for their participation in these accounting practices. The first employee is Stephen Lowber, the former chief financial officer. Lowber was sanctioned through paying a $50,000 fine and agreeing to not serve as an officer or director of a pubic company. In addition Lowber agreed to cooperate with investigators into detecting past accounting fraud at the company. The second employee involved was David ‘Andy’ Hilton, the former regional vice president for sales. Hilton was sanctioned through agreeing to pay a $25,000 fine. It’s clear that their actions pose ethical problems for the company. When one considers that the organization is a public company they are not simply responsible internally, but also must be responsible to stakeholders. Capital market research demonstrates that one of the primary contributing elements to shifting stock prices is revenue figures. Through the organization’s practice of recording revenue early and then concealing losses among departments, they were able to produce inaccurate statements that may have contributed to inflated equity valuations. Other groups of individuals

The Condition of Twenty-First Century Societies Essay - 3

The Condition of Twenty-First Century Societies - Essay Example There is a certain kind of instability that law would display as a social institution in the twenty-first century. Apart from this, there would also be a certain privileging of diplomatic ties between nations. This would lead to a situation of anarchy within the society that one is a part of.  Ã‚   Many have argued that law is not a viable mode of controlling society in the event of societies being controlled by pragmatic forces rather than the law. Diplomatic ties and the maintenance of economic structures can then be looked upon as the reasons as to why the law is adhered to in the society of the twenty-first century. In cases where the law does not facilitate this, it may be flouted with the consent of the very people and institutions which had created them. This flexibility in the operation of the law is a phenomenon that is expected to continue in the twenty-first century. The possibilities of chaos thus remain even in the twenty-first century that shows no signs of effecting a change in this regard. This has implications for the way one views social institutions and their methods of functioning. This also implies a change in the conventional notions of what constitutes a civilization and civilizational ethos. By the time of the end of the cold war itself, â€Å"it was cl ear that law could not constrain the external behavior of nations in any serious way; only the use of force was respected. If realists were correct that states were rational, unitary actors concerned with their own survival, then they would be loath to enter into agreements that in any way constrained their ability to act.† (Raffo et al. 2007, 5). Here, what is important is the primacy of politics in shaping the way the world is.  Ã‚