Answer

Running Head: ACCOUNTING RESPONSES 2

Title: Accounting Responses

Student’s Name:

Professor’s Name:

Date:

1. Response to Tillmon

It is unethical to try and evade the law and make use of fraud to make money. You have given a perfect example of a company involved in aggressive accounting. Such cases are indeed among various companies. The Securities and Exchange Commission is always doing a good job just as you have elaborated in your first paragraph (Giroux, 2013). You make a perfect point when you suggest the need for an independent auditing firm to regulate audits in companies. The independent auditing firm will bring light to any auspicious actions which might lead to mismanagement of funds as it was the case in GE. As you put it, such problems will be prevented at all costs, such situations as reported in General Electric (GE). If the management of such companies cannot explain the cause of such drastic reduction and audits, they should have the courage to step down to allow for further investigation. This move will lead to more accountability and responsibility among the manager of companies such as GE (Schilit & Perler, 2010).

References

Giroux, G. (2013). Business scandals, corruption, and reform: An encyclopedia [2 volumes]: An Encyclopedia. ABC-CLIO.

Schilit, H. M., & Perler, J. (2010). Financial Shenanigans: How to detect accounting gimmicks & fraud in financial reports (3rd ed.). McGraw Hill Professional.

2. Daniel response

The scandal you chose in your discussion was a good one (Dilley, 2012). It shines a light on the possible manipulations that financial institutions might have on their customers. In your discussion, you talk about how the banks you identified were involved in the unethical act of manipulating the international rates ranging from credit cards to student loans. This act is a very immoral act carried out by the respected financial institution. It is against the local and international law to manipulate customers and end up charging them high interests to make more profits. Your chosen scandal is among many others which still go on unnoticed. The U.S Commodities Future Trading Commission should conduct more investigations on all financial institutions. This move will lead to the unearthing of various irregularities by financial institutions (Felsenfeld & Glass, 2011). You make an excellent point in your discussion when you speak of having a separate commission to regulate the banking rates. With an independent body, the banks' activities are monitored, and such cases will be prevented.

References

Dilley, D. K. (2012). Essentials of banking. John Wiley & Sons.

Felsenfeld, C., & Glass, D. L. (2011). Banking regulation in the United States - (3rd ed.). Juris Publishing.