Advanced Business Law for Accountants

TITLE: ACCT 511 - Advanced Busin ess Law for Accountant

Introduction

This paper provides an overview of business law for accountants With increase in commercial activities,

there has been a consequent rise in cases of business disputes.

Business law is the law which encompasses the legal relations between businesses and other business

entities. It covers a broad subject matter, which is contract law, corporate management, legal regulation

of business, taxation, protection of property, labor relations. Business law is important for accountants

to learn because their work involves coming into contact with it in their daily work settings. The legal

aspects of the financial transactions, reporting and of the patterns of operation concerning the

management of finances have to be regulated by the accountants. They also consult businesses on legal

issues on the management of finances which proves vital in making organizations avoid legal pitfalls or

lose substantial amounts in court.

Ahmed (2013) asserts that knowledge of law is important to the practice of accounting.

Due to their duty to maintain honesty specially to public \\ entities, and avail information’s that are

legal, ethical and convenient for business, it’s critical for an accountant to have legal knowledge. An

accountant also has functions like; scrutinizing the contracts, reviewing the accounts, and reviewing or

checking on the operations under the provisions of tax laws and corporate governance structures. Lack

of understanding of business law can be catastrophic to an organization or an accountant’s client in the

sense that it subjects the organization to legal risks, regulatory risks and risks of negative brand image.

For instance, the failure to observe certain laws such as GAAP or IFRS is blessed with serious measure

such as penalties for the violation of the law, judicial proceeding, and the community’s loss of trust

among others. Accountants should also note some new laws that are being defined in today’s world

such as; – legal tender in form of virtual currencies, data privacy and cybersecurity.

Preventing Cruelty To Animals: Purpose and Scope of the Essay

Toward this end, this essay seeks to present an elaborate discussion on the subject of advanced business

law in as much as it pertains to the accounting world. A brief written and class discussion over the extent

to which the laws will cover the accountant profession, such as contract laws, corporate governance,

laws governing compliance, and taxation laws. Ethical concerns will also be analysed in this paper; the

writer will state that accountants ought to act ethically in their line of work particularly in cases when

they act in accordance with the legal procedures. The following topics will be discussed; The

enforcement of corporate governance principles by the accountants, tax compliance measures, and

compliance with international accounting standards. Using the methedology of two companies cases –

Enron and WorldCom circumstances, the reader will be provided with information about the legal

consequences for the action and decisions which do not respect the legal and ethical norms and

stantards. Last but not the least, the essay will analyze business law trends in the future, establish how

the modern technologies and globalization reform the legal environment of accountants.

At the end of the essay, they will be informed and knowledgeable on what the law demands of the

accountant, need to know about business laws, and the challenges accountants face in today’s complex

economy.

2. Meeting Course Objective

The legal profession in which accountants work is driven by laws that regulate the financial, working and

ethical conduct of firms. This paper indented to establish the understanding of accountants about

various legal systems, the sources of laws, and the significance of every effective in the operations of

businesses. This section introduces legal systems, the relation of law to business and the issue of

compliance with special reference to accountants.

The study of legal systems and sources of law differs from its definition or explanation as explained at

the beginning of this paper.

Understanding of the Common Law and the Civil Law System

Common law and civil law are probably the most separating concepts that might be met in different

countries’ legislation.

The civil law systems that have been adopted in most of the european nations, japan, brazil, and mexico

to the largest extent make use of legislation, written codes. This means that the judgments of the cases

constitute sources of information that courts use in arrival of decisions. This resulted into a situation

whereby the body of law is alive having been informed by new decision that were made in the past.

Consequently, this system will cause accountants to encounter rather sophisticated legal regulations

because the nature of financial legislation’s interpretations may alter due to new judicial decisions.

Accountants practicing in common law system have to in a position to update them selves with the

latest case laws to practice in a manner that is legal according to the aspects of the existing legal

systems.

Civil law systems are mostly identified in France, Germany and Japan and are based on code. Such

systems are written and, the laws passed here are even more written and the judges rely on the statutes

passed into the statutes laws books. The legal system regulating accountants in civil law countries is

relatively certain compared to that in common law countries because rules are spelled down in the law

texts. This does not mean that they don’t occasionally need to decipher specific legalities in how the

codes are implemented with relation to certain accounting practices.

Looking at the Statutes, Regulations and Case laws Associated with Business Operations

Legal environment of business means that every business is legal within the statutes, regulations & case

Laws governing business. These sources of law are important in defining how business entities in the

economy manage their fiscal is moneys, relating with employees, and operating with consumers and

other revenue makers in the marketspace.

Statutes are formal writing enacted by legislative bodies that include parliaments or congress. For

accountants, primary statutes are the financial reporting statutes, taxes statutes, and statutes

controlling corporate management. For instance in the United States, the Sarbanes Oxley Act (SOX)

brought several rigid measures with regard to fraud in organizations, it becomes imminent for an

organization to follow these laws in order to avoid the law.

regulations are procedures or regulations that some governmental bodies require to be put in place to

implement statutes. An accountant needs to be aware of rulings made from bodies like the Securities

Exchange Commission or Internal Revenue Services if he or she operates in a corporate or governmental

setting.

Legal precedent means decisions that were made by the judges during the trials. They contain the

decisions of the court as applied and as an interpretation of statutes and regulations. To accountants,

the case law determines decisions on tax deductions, reporting practices, and the right approach in

implementing a certain GAAP in certain circumstances.

Ignorance of these sources of law is important for accountants since they define the legal environment

within which monetary decisions ought to be undertaken. Failure to conform to the statues or

regulation or recognition of a case law may lead to litigation or fines or even prosecution.

The Role of Law in Business

In this paper, the various ways through which business laws safeguard consumers, shareholders, and

other stakeholders will be discussed.

Business laws have many functions, and one of their fundamental functions is to protect many

categories of people such as customers, investors, and workers. To the accountants, an understanding

of how these laws work help them determine if he or she or the organization they are working for is

lawful and or ethical.

Consumer protection laws protect customers against various unfair conducts of business, financial

misrepresentation and deceitful advertisement. They entail getting accounting accounts and statements

that reveal the position of the business so that the public cannot be taken through a wrong picture

which can in fact fool them.

This is legal provisions that have been set to protect the interest of shareholders of floated companies.

Accountants need to adhere to financial ratification laws like the securities law in order to protect

shareholders from financial fraud.

Employment laws are the legal institutions that are set down in the relationship between the employees

and employers with regard to pay and incentives, and conditions of service. Payroll accountants in

particular should make sure they are following labor laws to avoid legal problems.

The prime purpose of such laws is to enhance equity, disclosure and otherwise integrity in commercial

enterprises. These legal principles refer to companies in obeyance to the law as being accountable

through the gatekeepers especially the Accountants hence regaining the trust of the public.

The Importance of Contracts, Torts, and Liabilities, Knowledge as Considered by Accountants

Contracts are standard tools in business interactions Losers Contracts are essentials of business dealings

Business dealings involve the use of contracts. Contract management is sometimes under the

responsibility of an accountant since they work on contract payments, cases of contract breach, or

evaluate the contract’s financial consequences.

A contract refers to an undertaking between two or more parties which hold the force of law. Of all the

legal areas, contract law is specifically essential for accountants because they need to be fully aware of

contracts and the related duties to guarantee the company’s records are appropriate, and the risk $$$

involved in a conflict concerning contracts will be acknowledged. A failure to record contractual

obligations may lead to some incorrect figures on financial statements and legal risks.

Negligence or fraud are examples of torts, wrongful acts that lead to an individual or a company

suffering loss or damage for which a legal remedy is furnished. Accountants can be subjected to torts, in

cases where they didn’t, for instance, apply reasonable care when preparing financial statements. Legal

risk, for example, is when accountants are legally sued by businesses who blame them for financial

losses through an inaccurate account.

We define liabilities as duties or balances that a business has to pay to other parties. Employers rely on

accountants to report liabilities within organizations in a proper manner and; In informing businesses

about the legalities and consequences of a liability for them not to violate the laws of their operations, it

would be useful.

Legal risk and compliance in business is focused on the obligation or failure to conform to necessary

legal requirements of a business.

Noncompliance By accountants and how and why failure to adhere to the rules is important.

The attendance to the laws and regulations is an important factor in companies’ activity. In the case of

accountants, compliance is synonymous with following the law but it is also about maintaining an

acceptable social image to business stakeholders including investors, employees and regulatory

authorities. Failure is risky since there are fines and legal cases against the business, and it erodes the

business image.

Financial Reporting Compliance: That is why one of the important goals of accountants is to monitor

compliance with legislation when preparing financial statements. Companies in the US have to follow

the Generally Accepted Accounting Principles (GAAP), for firms that list their equity securities in the

public markets. In other locations, the use of International Financial Reporting Standards (IFRS) is

employed. Any accountant found wanting in applying these standards may be arrested and face legal

consequence besides, clients who do not apply the standard in their business may also face audit, fines,

or de-listing.

Tax Compliance: Consequently, accountants need to make sure an organization follows tax laws at the

country, state, and federal levels. This encompasses computation of taxes to be paid remitting taxes at

the right time and most importantly allowance of correct deductions and credits. People may face audit

and penalties and even legal consequences according to their noncompliance with the tax regulations.

Anti-Money Laundering (AML) and Know Your Customer (KYC): In many industries accountants also have

responsibilities of monitoring and implementing laws that have been put in place to curb moment

laundering and other related offenses. Some are client identification processes like Know Your Customer

(KYC) to ascertain the true identity of the clients, and making of reports of suspicious transactions to the

Reports the relevant authorities.

The Consequences That May Emerge from Non Adherence to Laws and Regulations and … How

Accountants Assist Companies to Minimize Legal Implications

The implications here that arise due to failure to observe these standards include financial implications,

legal repercussions and reputational repercussions. However, it may be crucial for accountants to learn

the potential legal perils in order to safeguard businesses from these.

Financial Risks: Financial reporting for instance is a regulation that if violated, attracts serious financial

consequences. In public limited companies, failure to adhere to the rules of the securities laws leads to

fines by appropriate bodies like the SEC and at worse leads to business failure and liquidation.

Litigation Risks: Some of the operational risks which are legal include situations where organizations

undertake operations and fail to uphold the contractual agreements, taxation procedures or

employment policies and regulations. Due to this legal risk, accountants have a significant task of

explaining and limiting these legal aspects so that companies can adhere to legal provisions in their

operations.

Reputational Risks: Legal differentials or even regulatory violations can be terribly destructive to a

company’s image. For instance, a firm that is charged with fraud will suffer loss of confidence from

users, investors and consumers and in extreme cases likely to face financial loss. These risks are taken by

Accountants to ensure that any business transaction carried out by the business organization is legal and

transparent.

All in all, one may conclude that knowledge of the legal setting is critical while the accountant is

expected to work in complex business processes. Besides, accountants are instrumental in mitigating

legal risks so as to elective the expertise of professionals together with maintaining beneficial,

prominence, and moral business vibes. This legal knowledge is important of the accounting profession

because it impacts on the accuracy of financial reporting and business occurrences.

3. Contract Law for Accountants

Business contracts are part of any business activities; therefore, any accountant should understand basic

aspects of contract laws in order to avoid or solve possible legal issues connected with correctness, legal

compliance, and financial reporting. Performing contracts are an essential sexual intercourse uniting

businesses, and the accountant often takes an active position in the settlement of financial obligations

of the parties, payment schemes, duties, and terms of fines. This segment will discuss the meaning of

contracts, types of contracts that accountants come across most often, breach of contract and the

appropriate measures, and contracting nuances particularly for accountants.

Introduction to Contract Law

Meaning of contracts as well as the contractual elements.

A contract therefore is the bargain of the two or more parties where duties are to be performed and the

laws is going to back. In the business, contracts are used to describe the various aspects of sales,

employment, services and supply contracts. From a contractual perspective, accountants and other

business people need to comprehend contract law so that they can properly manage legal and

contractual nature of these contracts.

The essential elements of a valid contract include:

Offer: One of the parties pursues certain demands or makes certain promises to the other proposing

conditions. The offer needs to be clear and made to the other party over the negotiation table.

Acceptance: The other party agrees to offer made with no other alterations have been made thereto

whether in writing or orally. For the contract to be valid, acceptance has to be of the same standard as

the offer.

Consideration: This is a principle of exchanging reciprocals values which may be cash, goods, or even

services. Programmes are not binding in law; consideration is an essential feature of a contract and

distinguishes enforceable contracts from simple promises.

Intention to Create Legal Relations: It is important for both parties to have the intent for entering a

legally enforceable contract. This is usually the case with the commercial agreements, while social

agreements may not possess the same missing intention.

These elements are important for accountants to understand since the effectiveness of some contracts

may need to be verified before the accountant records the financial transactions in question. For

instance one of the grounds is that the particular contract may be invalid the operation of this may lead

to some of the parties feeling that they would wish to get their money back.

Legal Aspects of Contract in Business

Contracts impose legal risks to the businesses since they outline actual legal positions of the parties to

the transactions. Other parties that are usually involved and that always ensure compliance with each of

the contracts requirement where there are provisions by way of payment, penalty and delivery of

services or goods include accountants.

For example, a service level plan may indicate the frequency, time and conditions under which payment

can be claimed. Violation of these provisions leads to fines, arbitration, or the contract’s cancellation.

Accountants are normally supposed to ensure that all the cash obligations of a contract like the payment

terms and the penalty are well handled and recorded.

Furthermore, some of the terms that may be incorporated in contracts are the terms of liability, and

non-disclosure, and other possibly contentious terms of handling any dispute. As with all legal clauses,

accountants must be aware of them so that the financial decisions being made by them are within the

purview of the overall legal structure of the business relation.

Contracts With Which Accountants Become Familiar

Different contracts present different challenges to accountants on financial and legal aspects of the

agency where they work. Some common types include:

Service Agreements: A service agreement is a legal document which defines the mode of doing business

between a business organization and a service provider. Such components may include, and are not

limited to, payment terms, timelines and other objectives of delivering projects. It should be the duty of

the accountants to see that payments have to be made for the terms laid down in the contract and also

any penalties for non-performance or delay in will also have to be reflected in the account.

Employment Contracts: Some of the main facets of the employment relations include wages and

salaries; allowances and perks; working and promotional structure; and with regard to the employment

contracts duties among other. It is the duty of the accountants to oversee the agreement of the contract

on the compensation to the employees including the bonuses, and the overtime as well as other

incentives. When it comes to the violation of the financial aspects of the employment contracts, any and

every misfortune leads to legal claims or unfair treatment.

Supplier Agreements: Purchasing or vendor contracts provide for the management of the relationship an

organization has with a supplier. They define the product or service to be delivered, the scope of the

delivery, price and the payment arrangements. Buyers themselves are faced with such financial

obligations that encompass payment coupled with price commitments as well as delivery times

negotiated between the accountant and the buyers.

In each of these contracts the accountants are required to record the transactions affecting the

company and see to it that the company meets the agreed contractual provisions. If not performed it

will lead negative implications including fines, lawsuit, or compromise the business relationship.

Contracts and Contract Disputes- Breach of Contract and Remedies

Penalties for Failure to Perform in Accordance with the Contract

Contract breach takes place when one of the parties with the agreement did not perform as it was

agreed in the contract. Breaches can be categorized into different types, including:

Minor Breach: Takes place when one party breaches the contract even though it has met most of the

contractual promises. For instance, poor time management to deliver products but in every other way

the quality and amount of these products may be satisfactory then it might be considered that there is a

minor breach.

Material Breach: This is a situation where one party to the contract fails to deliver an essential provision

in such a contract through gross negligence of the duties laid down under the contract. For instance if a

service provider has been hired to offer some service and fails to do this, then a material breach is said

to have occurred.

Anticipatory Breach: Happens when one of the parties expresses its intention not to perform the

contractual obligations before the time for performance. In a normal contract this may lead to the other

party seeking legal redress before the breach of contract occurs.

The legal effects of breach of contract include award of damages; rescission of the contract; and as a

equitable remedy, an order of the court requiring the party breaching the contract to perform the

contract.

Unlike in litigation method, the third party has the control over the process of proceeding to trial and is

responsible for the settlement of the case in both arbitration and mediation processes.

When a breach of contract occurs, several methods can be used to resolve the dispute:

Mediation: A process where the third person who is not affiliated to the firms assists the firms to come

up with a solution which they agree to embrace. Mediation is then used in solving business conflicts

because it is much cheaper than going to court as widely practiced in litigations.

Arbitration: A form of binding process whereby a third party listens to the two parties and makes a

decision for them. Arbitration is usually less formal than a trial, and the decision provided by an

arbitrator is as final as that of a judge in a trial.

Litigation: The most formal procedure where parties litigant have to wait for a court trial or a judge or a

jury to decide the matters on their behalves. Legal actions are expensive and take so much time yet can

help to settle very complicated issues.

Accountants need to recognize these ways of dispute solving as they can deal with data on damages or

estimations for a breach.

Implications for Accountants

The Impact of Contract Terms on Financial Reporting as Performed by Accountants

The management agreed that accountants have the responsibility of ensuring compliance with the

contractual provisions particularly those keeping to do with some financial commitments. This includes:

Monitoring Payment Schedules: Any delays or failure to meet the set contract payment times has to be

undertaken by accountants. He or she must follow the monetary obligations which are spelled out in the

contract as they usually result in penalties or litigation.

Assessing Financial Penalties: In the contracts for non-performance or for delay in performance or in

making payment, there are generally provisions of bonus or penalty attached. It is the duty of the

accountants to ensure these penalties heed the accounting records of the business in order for the

business to respond appropriately.

Verifying Performance: Sometimes, accountants may be required to confirm the physical delivery to the

other party of the concerns of the business, as per laid down legal procedures. This helps to allow the

contract financial records to be accurate as they portray the performance of the contract.

How Accountants deal with payment structures, penalties among other finance clauses within a contract

Accountants are responsible for managing the financial aspects of contracts, which include:

Payment Schedules: Making sure that agreed payment is made; no extra charges or fines for delayed

payment.

Penalties: Documenting any fines for delay, or failure to deliver any of the undertaken obligations, and

guaranteeing the documentation is correct when appearing in the accounts.

Revenue Recognition: These standards vary depending on the type of shipment covers in the service

contracts and; may include local GAAP or IFRS. Structural misfit between contract terms and revenue

recognition is a possibility of financial statements distortion.

In conclusion, it can be claimed that the accountants need to know the contract law in order to know

the legal issues related to them in order to understand whether the transactions implemented in their

organisations are legal or not. Treaties are a core element of any business process; therefore,

accountants are obliged to follow contracts and monitor the financial liabilities mentioned in the

document and cope with any possible controversies. In this way, accountants assist organizations in

avoiding legal problems and nurturing successful partnership with investors.

4. Corporate Governance and the Law

Corporate governance may be defined as the process through which business organizations are

managed and regulated. This is crucial in that it helps to ensure that organisation are run without

compromising the interest of the various stakeholders. This section shall attempt to define corporate

governance, principles of corporate governance, actors in corporate governance and the laws, the board

of directors and shareholders, laws governing corporate governance and finally the role of accountants

in the governance processes and reporting of a corporation.

To comprehend corporate governance is to be aware of the structure of a company, the relations of

power between shareholders, executive managements and independent directors, the motives that

drive them, and the mechanisms by which they attempt to advance.

What is Corporate Governance? The Fundamental Principles of Corporate Governance

Corporategovernanceisdefinedasthetheoryandactualmethodsformedulating,monitoring,andmanagingco

rporateaffairs. It defines how a firm’s management relates with its board of directors, shareholders, and

other stakeholders. Corporate governance skills maintain organizational integrity by directing corporate

actions into a corresponds to shareholders and societal welfare that will benefit all in the long run.

The principles of good corporate governance generally include:

Accountability: Both the management and the board of directors have the responsibility towards the

shareholders but must act to promote the welfare of all companies’ stakeholders.

Transparency: Earnings reports, including plans for future and existing strategies and risks

http://www.aicpa.org/research/industryresearc/indresearchproject.htm, should be revealed to

shareholders and the public clearly and at convenient time.

Fairness: Any business strategy involves ensuring that all stakeholders are treated equally and similarly

within the process of decision making.

Responsibility: Management at large is expected to provide reasonable assurance that the business is

conducted legally and ethically, particularly, executives and directors.

Independence: Non-executive directors or some specific committee should supervise the business

execution, avoiding conflict of interest.

As a result we must look at the duties of the Board of Directors, the Shareholders and the Executives of

the organization.

Board of Directors: The board has the important role of supervising the management of a company and

the company must be run in the best intrest of shareholders. The board determines corporate

behaviors, selects managers and oversees the organizations performance. avancement also leads to the

provision of adequate information disclosure to satisfy the board on the legal and ethical operation of

the company.

Shareholders: The owners of the company are the shareholders and they have an important function in

the organization of the company’s governing. They decide most of the corporate matters for instance

choice of a board of directors and ratification of mergers and acquisitions. But they are not as active as

the board and the executives even though they are supposed to run the board and its operations.

Executives: This group is�chooled by the Chief Executive Officer and is answerable for overseeing the

routine working of the company. They implement the strategies and policies developed by the board of

directors, and they also present to the board, and the shareholders, results of the company.

Corporation governance makes certain that there is a check and balance within these instrumentalities

to allow the company to run smoothly in favor to the stakeholders.

Corporate governance and the related legal provisions are major subjects of interest today.

Corporation governance is not only managed by the company’s guidelines but it is also under the

influence of numerous laws and standards to produce the organizational ethical standard and

accountability and transparency. Two legal regulations concerning the corporate governance system

recognized worldwide are the SOX and the Companies Act.

Sarbanes-Oxley Act (SOX)

The Sarbanes-Oxley Act of 2002 was enacted after enrons and WorldCom companies that highlighted

falsified financial reporting and frauds around the country. Bay’s evaluation of the SOX was to restore

the public’s’ lost confidence in the financial markets by increasing transparency and accountability for

management of corporations. Some key provisions include:

Section 302: Demands CEOs and CFOs to affirm financial reports physically, this helps keep top level

officers accountable.

Section 404: Lo’s 1 and 2 covers internal controls over financial reporting which every company is

required to implement, and this requires a company to evaluate the effectiveness of such controls.

Section 802: Makes provisions for punishing individuals who interfere with or change figures in the

records, makes provisions for record retention for audit or investigative purposes.

SOX has made contribution towards corporate governance by ensuring compliance for accuracy by the

executives and auditors. It also created the Public Company Accounting Oversight Board (PCAOB) that

supervises auditors of public company because of the law.

Companies Act

This is the legal framework that controls corporate governance in many countries especially within

United Kingdom and commonwealth countries. The Act thus provides the code of practice on duties and

conduct of directors and officers, regulations relating to general meetings and provisions for accounts

and returns. Some important features of the Companies Act include:

Director’s Duties: A director has the legal duties to exercise good faith, loyal, efficiency, and care in

processing corporate affairs. They should not have any conflict of interest and declare any direct interest

in any contract that the company is bargaining.

Annual Reporting: The Act also mandates the preparation of the company financial statements namely,

profit and loss accounts and balance sheets within one year and in any case within two years from the

date of the order in addition to requiring companies to supply to shareholders shareholders with

relevant and timely financial information on the company.

Shareholder Rights: The Act safeguards shareholders’ interests, they have a right to; all voting on pivotal

issues that affect the business and rights to information from the company.

Consequently, it can be mentioned that both SOX and the Companies Act establish the legal basis for the

application of corporate governance, as well as support the proper activity of enterprises.

This paper seeks to present an understanding of the nature and importance of accountants in corporate

governance.

By way of regulation and supervision of corporate entities, Accountants perform an important part in

corporate governance mainly reporting accurate, fair and lawful information to the company. It is a very

important element in defending the basic guidelines of sound management since their task is to produce

information to be used at the corporate level.

In this case, accountants have the responsibility of enforcing the compliance, accurate disclosures and

accountability as compelled by the global laws.

Financial Reporting: Accountant responsibility involves creating and delivering accurate finance reports

which will provide a true reflection of a firm’s health. These reports help the board of directors,

shareholders, and regulators to analyze the performance of the company in other to make a conclusion.

The information relayed on these reports should be accurate and transparent for the sole purpose of

regaining public and investors’ trust.

Internal Controls: A case is when accountants work out and apply procedures for fraud prevention and

improvement of financial reporting reliability. Internal controls also prevent loss of organizational

property, protect the credibility of accounting records and ensure that organizational operations are

legal.

Auditing: The external and internal audits are of considerable importance in corporate governance

systems. The external auditors offer an objective opinion about the financial statements of a business

and give assurance that they are free from material misstatement. For example, internal auditors often

who can also be accountants assess the company’s internal control and governance structure and

identified the possible troublesome areas and risks.

Ethical Compliance: Management accountants guarantee compliance with the ethical and legal

requirements on the company’s financial activities. They are expected to make sure that there is no

possibility of unethical or unlawful action to occurs in the company.

Legal Environment in Auditing and Financial Disclosures

SOX and the Companies Act of South Africa affect the way that accountants carry out their roles and

responsibilities especially where auditing and financial reporting is concerned.

SOX and Auditing: Sarbanes Oxley Act enacted severe penalties for auditors for instance Auditor

Independence and reform of subservient business controls of financial reporting. Accountants are in

charge of compliance with these regulations in order to meet a high work standard and to prevent legal

consequences.

Companies Act and Financial Disclosures: The Companies Act demand that companies report their

financial information well and punctually. The preparation or auditing of such disclosures is the

responsibility of the accountants because they have to ensure they are legal compliant and convey

valuable information to the various stakeholders.

Also, the laws demand a high level of personal professionalism from accountants in terms of, for

instance, compliance with requirements of accountability. Failure to adhere to these standards exposes

the company to risk and winds up incurring penalties, law suits and tarring the image of the company.

Conclusion

Corporation governance comprises of the processes through which business corporations are managed.

The correct governance system has the function of ensuring that the companies are operated for the

interests of the interested individuals, act with transparency and compliance with the law. Regularity

auditors involve themselves in this process and make financial reporting to be accurate as per the legal

requirements including the SOX and Companies Act. By familiarizing themselves with corporate

governance laws and principles, accountants can enable organizations to avert legal pitfalls; uphold

public confidence in organization and support sustainable productivity.

5. The Law and Regulatory Compliance for Accountants

In the current global and regional business context accountants are expected to make sure that various

business reports, audits and other related functions conform to various requirement and laws. These

frameworks, to contact integrity, transparency and accountability, have significant implications for the

different stakeholders including the accountants, corporations and the wider economy. Hence, with a

view to avoiding all such legal implications and autres and other associated financial burdens, it was

necessary for the accountants to proceed with certain amount of circumspection while implementing or

adhering to compliance.

The Authorities Regulation of expert services, a brief introduction

Accounting is still today governed by both national and international rules as well as specific rules of the

sector. These regulations is said to reduce the probability of fraud and manipulation when reporting

with an aim of safeguarding investors, the regulatory bodies and the public.

Accounting Regulations Important for The Profession

Securities and Exchange Commission (SEC) Rules: Among them, it is specifically responsible for

overseeing public companies doing business in the United States and offers polices on disclosure, audit,

and other financials. Accountants who are associated with organizations that fall under the securities

and exchange commission regulation are restricted to undertake SOX regulation, which consolidate the

principles of auditing and fiscal reporting disciplines.

Financial Accounting Standards Board (FASB): The FASB performs a central role in setting the accounting

standards using GAAP in the United States of America Through sustaining of GAAP by the FASB,

accountants should ensure that particular financial statements are prepared and audited with

compliance to GAAP in recognition of their proper depiction of the financial position of a certain

business entity.

International Financial Reporting Standards (IFRS): IFRS is the international accounting standard that has

been developed under the aegies of International Accounting Standards Board IASB. Most of the

countries apart from the U.S use IFRS and those practicing Accountancy practice have to adhere to these

international standards for financial reporting.

Public Company Accounting Oversight Board (PCAOB): Created by SOX, the PCAOB is responsible for

monitoring the audits of public companies so that only ethical standards can be used in financial

reporting. The first regulate which PCAOB has set out oversees the auditors by ensuring they exercise

due diligence when handling the company’s accounts.

Combating of Money Laundering (CAML) and Customer Identification Program (CIP)

Legal Demands for Detection and Mitigation of Financial Frauds

However, in the present era, accountants face the great challenge of risk management particularly

fraud, through AML and KYC measures. AML laws mandate certain action that must be taken to identify

and avoid money laundering and terrorist financing activities.

AML Compliance Requirements for Accountants:

Customer Due Diligence (CDD): It is the prerogative of the accountants to make sure that the clients they

are attending to are subjected to the relevant legal tests of credibility. As part of KYC, the company

would need to satisfactorily identify the clients and their operations, as well as identify the likelihood of

them indulging in money laundering and financial crimes.

Reporting Suspicious Activity: This is so because accountants find themselves in a position where they

are most likely to notice several transactions that are a bit off – both in the manufacturing and service

sectors. In any case, accountants are under the duty to report the noticed illegitimate activities in the

form of SARs where accountants forward the observations they make to the like of FinCEN in the United

States or similar organization in other countries.

Record-Keeping: Due to AML regulations, accountants must keep records of the transactions executed

for clients as well as records of the due diligence processes to be done for a specified period. This is

crucial so that the materials will be easily accessible for either regulation or scrutiny whenever there is a

question.

This raises the question of how accountants will support and facilitate adherence with AML

requirements.

Financial accountants are the guardian of the financial statements, their job is to perpetuate or

undertake any activity that may lead to money laundering, tax evasion or any other form of financial

crime. The processes of implementing the measures or procedures in the International AML standards

require the subject to put in place proper internal system, record-keeping procedures, and proper

documentation of all the transactions among other things. As the reader can learn, accountants who fail

to meet their AML obligations for their organizations face rigid legal sanctions, these may include

penalties or imprisonment.

Companies continue to face issues surrounding the body’s reporting, disclosure standards and

requirements throughout the year.

This is very important as records constitute the major proof of integrity in as much as dealing with

investors, the government and all other interested parties. That is why GAAP and IFRS are the

accounting standards that facilitate the execution of financial transparency and reporting.

Other Legal Requirement Pertaining to Preparation of Genuine Financial Statements (GAAP, IFRS)

GAAP: All financial statements which are prepared in the U.S have to be prepared on the basis of GAAP,

which offers a structure of guidelines for recognizing revenues, expenses, assets, and liabilities. By

following GAAP, financial statements are harmonised, set against other statements and provide an

authentic representation of a company.

IFRS: In the world, numerous countries make it obligatory for organizations to adopt IFRS as the

international language in accounting. According to this, there is ability to understand the financial

statements and the same can be easily compared across the different countries.

From this we can establish that ISCO explains that accountants use such standards as a form of reporting

relevant financial information to the shareholders and the regulators. If these standards are omitted it

attracts legal consequences such as fines, legal actions as well as a problem in the image of the firm.

Misreporting and Fraud: How It Leads to Legal Complications

In cases of financial misreporting or fraud, the result is always disastrous to both the accountant and the

firm involved. Some legal consequences include:

Civil Liability: Also, anyone that has suffered a financial loss due to misreporting of the company can take

the company and the accountants to a civil court. The legal consequences may include heavy monetary

penalties, and tarnished career reputation.

Criminal Liability: In fraud matters, accountants can be prosecuted, the penalties for which are fines

and/or imprisonment. Legal prosecutions are normally instituted where the accountants have

participated in the fraud schemes willingly or have helped the organizations to perpetrate fraud while

developing their earnings or expectations for the financial periods under review.

Regulatory Fines: Governmental bodies such as SEC or PCAOB may fine and punish severely Companies

and their accountants when Companies does not meet Financial reporting standards or fraud.

Punishments Corporate Businesses May Suffer in Case They Fail to Implement Corporate Compliance

Program

There are various legal risks that accountants encounter if they do not observe the legal requirements

especially when it comes to ground of financial wrong doing. These vary from simple fines right up to

criminal charges and is intended to prevent unethical behavior and for the stability of the financial

systems.

Legal Risk Implications for Accountants When Companies Violate the Law

Personal Liability: Some of the specific risks are: The accountants themselves are often legally

responsible for financial fraud or false reporting and violation of regulations. For example, in accordance

with the requirements of the SOX, Chiefs of an enterprise are obliged to sign a financial report, and

therefore they can be penalized for signing the report containing fractual or false data.

Professional Sanctions: The investigative and law enforcement authorities such as PCAOB or national

accounting bodies have powers to remove an accountant from practice and avoid practicing

accountancy. Further, penalties can include suspension or expulsion from State and/or National

professional Societies such as the AICPA.

Fines and Imprisonment: Today, professional accountants, who violate provisions of the AML regulation

or engage in fraud financial reporting or participate in tax evasion schemes, will be subjected to hefty

fines and imprisonment. For example, accomplice in tax fraud or complicity to facilitate tax fraud is

unlawful in most of the legal systems.

Reputational Damage: Failure to adhere to these standard bears serious consequences including

reputational losses not only for the accountant but also the company he/she works for. Doing this has

negative impacts since a bad reputation is hard to remove; it causes loss of clients, reduction of the

degree of trust in the market, and limited chances of employment.

Conclusion

The rules governing the operations of an accountant are many and dynamic in nature. Legalities, as

known, involve adherence to a number of laws and regulations that dictate financial reporting, money

laundering, among other things. The following are legal consequences of non-compliance with the

implemented laws; Civil and Criminal Penalties, Professional Sanction, Reputational Risk.

Entrepreneurs applying the knowledge of GAAP, IFRS, SOX, AML laws can consult accountants in order

to keep legal pros and cons under control and ensure the highest level of businesses’ compliance and

honesty. It is not only important, but necessary to have a full grasp for regulatory compliance; this is an

essential aspect of shielding the financial system as well as the working interests of stakeholders.

6. Implication of Tax Law for Accountants

Accountants serve an important function as they must always deal with tax law within the course of

their work as they endeavor to observe that their clients or companies do not violate tax laws or pay less

tax when they are supposed to pay more. This section discusses important facets of tax laws in the

country, as well as the differences between tax evasion and tax avoidance, accountants’ roles in the

process of taxation and during audits or investigations.

Overview of Tax Law

For our purpose, tax law will be understood as the rules and policy put in place by the government to

raise taxes from citizens and or companies. These are different in every country but they consist of

income taxes, company taxes, employment taxes and consumption taxes. Evaluating complexities of

these laws are something which every accountant needs to know in order to profession properly and

give effective money related exhortation.

Basic Concepts of Taxes; Major Acts affecting Taxation

Internal Revenue Service (IRS) Code: The body of law governing federal taxation in the United States is

the Internal Revenue Code or IRC for short. Any accountant needs to know something about the IRC, in

particular about income tax, deductions, credits and reporting requirements. For example the IRC sets

the corporate tax rate, capital gains taxes, when and how frequently business entities are supposed to

file taxes.

International Tax Treaties: A large number of these multinationals find themselves under the legal

jurisdictions of several countries in terms of tax policies. A tax treaty is an agreement between two or

more jurisdictions that aim at reducing the system of double taxation, on income earned in several

countries. In order to avoid companies being charged more than they should, accountants must know

how these treaties operate. Treaties also regulate transfer pricing, the practice of setting up a price at

which related parties of the same group of companies charge each other for goods and services cross

border.

Value-Added Tax (VAT) and Goods and Services Tax (GST): Where VAT or GST exist, then the

consumption taxes must be correctly collected and paid by the accountants. Any business organization

must maintain their records properly and accurately fill their VAT/GST returns at regular intervals;

otherwise, they will attract penalties.

Corporate Tax Laws: Business profits tax, dividend and other capital gain taxes prompt the use of

accountants in terms of the amount of earnings that is taxable, the rate by which they should be taxed

or the extent to which they may be exempted. Assessing corporate tax law allows individuals and firms

to pay lesser amounts of taxes legally as a way of meeting the legal requirements while doing so.

A paper on the participation of accountants in tax planning and compliance

Tax advisors are also crucial here, as they are chartered accountants that help firms to understand how

they might structure their business in a manner that would be least detrimental from the tax

perspective. This involves going step by step through a range of allowances, exclusions and reductions

and should also be able to suggest strategies for example, the postponement of income or acceleration

of depreciation. Furthermore, accountants are involved in preparing tax returns, keeping accounts of a

company and advising clients when to pay taxes and more importantly, when they are due.

Key responsibilities include:

Tax Return Preparation: Tax preparers complete credible tax documents, making a qualitative

confirmation to the amounts of income, allowable expenses, and tax credits released.

Compliance Audits: They also conduct internal tax audit whose main purpose is to verify the company’s

compliance of both its business processes as well as accounts, to the tax laws.

Tax Strategy Development: One of the other tasks aspires to provide some suggestions concerning most

probably legal strategies of taxes payment decrease, for instance, use of tax exemptions, credits and

other forms of taxes deferrals.

Tax Evasion vs. Tax Avoidance

Evasion and Avoidance Legal and Ethical differences

As much as many people use the two terms interchangeably, tax evasion and tax avoidance are two

different things that have differing legal and ethical standings.

Tax Evasion: This is an offense, whereby an individual relaunch or conceals some of his or her income

with an aim of avoiding to remit taxes. Evasion includes acts ofitemId falsification of accounts,

concealing of assets, or exaggeration of allowances. It is so considered; if committed may result to

serious repercussions which may result to a fine, imprisonment, the affected company or individuals

may suffer from a bad reputation.

Tax Avoidance: Tax evasion can simply be described as non-payment of amounts of taxes which should

ordinarily be paid while tax avoidance, may be described as the lawful use of tact and talent to ensure

that less taxes are paid than what is legally necessary. Reasonable ways by which people and businesses

can avoid paying tax include making allowable deductions, using tax credits, or adjusting for income or

expenses at the appropriate time. However, there are still situations, where such actions are completely

legal but still seem somewhat unethical because they exploit loopholes that probably were not

supposed to be used.

Emerging Market Company Cases concerning Tax Law Violation

Enron: Such blatant examples include the case of Enron where through a series of sophisticated

accounting fraud and scares of off shore tax havens, carted out a major accounting fraud where the

company bist killed its actual earnings. This case also introduced the general public to the accountants’

role of reporting and of preventing similar frauds.

Apple and Ireland: Despite being legal, Apple has been using Ireland’s tax ……regime to lower the

corporate tax rate for itself something that has caused controversies on tax evasion practices. Apple has

used sophisticated tax strategies to pay much less taxes and this made people demanded that there

should be change in the international tax rules to eliminate such measures.

Expectations of Law in Tax Audit and Investigation

Over the course of the tax audit and investigation accountants become active in a middleman position

between the business and the tax authorities. They are tasked with producing accounts; standing for the

business in the audit; and giving information or reasons to the authorities.

The Assistance Offered by Accountants to Companies during Tax Audit

Audit Preparation: Some of the ways used by accountants during the preparation stage for the tax audit

are the accumulation; of the business tax returns receipts and records of deductions. Helps to sort the

financial documents in order to present the company’s conformity to tax requirements.

Representation: In an audit process, the accountants act on behalf of the business being audited to

respond or answer questions from the taxing authorities. It is always useful to have some understanding

of the laws that govern the procedures of the audit and most importantly, basic information on the

company’s financial status.

Negotiating Settlements: Sometimes the accountants may help in arriving at payments or installment

deals if the business as established to be in arrears of taxes. It can also be in direct contact with the tax

authorities cutting on case penalties to represent the company and negotiate an improved deal.

Legal Implications of Tax Evasion and us a Way Accountants Can Prevent It

Using the above definition, tax evasion maybe described as the act of breaking the law so that the

amount paid by the taxpayers is below the expected amount. In civil law there is always a penalty for tax

fraud that someone needs to respond for defamation in fines criminal charges and or imprisonment.

Penalties for Tax Fraud:

Civil Penalties: Governments may include penalties for under declaration of income which are usually as

a percentage of the tax in question or a hefty amount for a very distorted figure.

Criminal Penalties: If the act was done intentionally there are legal repercussions that such

individuals/businesses are likely to be charged; this may attract a heavy fine, or in the extreme,

imprisonment. Well-known examples of tax fraud have not only resulted in prosecution, but also

imprisonment of CEOs and other officers of accounting firms implicated in such scams.

Preventing Tax Fraud: The experts of the field of accounting are of great help to organizations especially

when it comes to cases where there is flexibility of the nation’s tax laws and individuals try to exploit this

by engaging in tax fraud. Bookkeeping, internal control as well as an elaborate way of compiling

accounts, advice organizations on how to go round dealing with several laws on taxes without having to

engage in any unlawful activities.

Key actions accountants take to avoid tax fraud:

Conducting Regular Audits: Internal audits are useful in pointing out accuracies or otherwise of figures,

before compiling a final tax return.

Education and Training: The social function of accountants is to constantly update the businesses on the

legal limitations of the tax law to avoid cases of non-compliance.

Implementing Internal Controls: Michael Gomo, The Blame Game that derails an organization can be

alleviated by having clear internal controls and procedures in place to minimize mistakes or even fraud

in tax compliance reports.

Conclusion

This field is one of the most continuing areas in the law and an accountant must ensure he or she

complies with the laws set under this field. The importance of framing the key principles of tax law, the

differences between avoiding and evading taxes, and the part of accountants in audits and inquiries to

comprehend legal duties of the profession. While their primary role is the proper filing of taxes,

accountants nowadays act as defenders of financial excellence while keeping companies legal on their

tax optimizations.

7. Business Structures and Legal Aspects.

Organization structure legal and fiscally influence a business, consequently, it is strategic that

accountants learn various types of business structures and the law related to these structures. Most of

the times, accountants are consulted on the right structure with regards to legal and financial

responsibilities, taxation, and other issues of law. This section discusses recurring types of business

entity, legal consequences, and how accountants assist organizations with these choices with factual

examples.

Inatures of Business Structures

The legal frameworks of business entities can be chosen in various forms therefore have their specific

advantages and disadvantages. There are such aspects as liability, taxes, ownership, and management

control which are depended on the decision on the structure of a business. Below are the most common

types of business entities:

Corporations

Definition: A corporation is an organization that is separate from the owners of the corporation which

are called shareholders. ING has its own legal capacity to perform legal entities including power to sue

or be sued and make and enter into contracts on its own behalf.

Characteristics: Companies provide limited liability which means that the owners of the business are not

legally responsible for the business debts. It is also subjected to corporate taxes which puts it at a

disadvantage compared to other structures for doing business.

Types: They include the C corporations where the corporation is taxed first together with the

shareholders; S corporations where the income is passed through to the shareholders, yet it shields the

investors from individual responsibility.

Partnerships

Definition: A partnership is an organization whereby two or more people own and operationally control

the business.

Types:

General Partnership (GP): Both gain and loss are borne equally and management responsibility is

likewise distributed equally.

Limited Partnership (LP): Some partners have restricted personal responsibility whereas other partners

have full responsibility and management authority.

Limited Liability Partnership (LLP): In limited partnership all parties have limited liability and therefore

enjoy immunities from debts as well as conduct of other partners.

Taxation: The majority of partnerships is liable to pass through taxation which means that the profit and

losses are charged passed to the owners at personal level and declared in their personal tax returns.

In its current state, small businesses can incorporate through a legal instrument known as the Limited

Liability Companies (LLCs).

Definition: As an organisation structure, an LLC is a cross between a corporation that offers owners

limited liability and a partnership or sole trader enterprise that does not pay its own taxes.

Characteristics: LLCs also involve flexibility in both managerial and taxation structure. Members are not

in any way liable for the debts of the business and the business can be liable for tax as a corporation or a

partnership.

Popular Use: Businesses and especially small and professional services firms prefer LLCs because of its

relative structure and legal liability.

Sole Proprietorship

Definition: Sole trader is the least complex form of business organization where the business belongs as

well as is run by a single person.

Liability: The owner has no separate legal personality from the business and therefore all the business’s

debts are the legal obligation of the owner.

Taxation: The owner pays taxes based on how much income his/her business earned, but there is no

taxation at the business level. While sole traders can avail tax deductibility that is available to it, they are

also subjected to increased risk of liabilities.

Legal Consideration of Business Structures

This defines many aspects including the legal responsibility, the business aspect of the taxes and other

legal aspects within the business. When acting for clients, accountants have to take all these factors into

consideration before recommending the right corporate structure.

Liability

Corporations and LLCs have limited liability; it means that the shareholders, partners, directors or even

members bear no legal responsibility each time the enterprise is involved in a suit or has a contractual

obligation to pay. This structure can also be of significant benefit for organisations that may be exposed

to significant business risks, including law suits or high amounts of debt.

Sole trader and the general partners in a partnership are legally liable for business debts and as such the

creditors of business can access personal assets of the trader or the partners.

Tax Considerations

That is, C corporations are subjected to corporate tax and also individuals pay tax on the distribution of

dividends to shareholders. This problem does however not affect S corporations and LLCs as these type

of business are subjected to pass through taxation and income is passed directly to the owners for

taxation on the individual ability.

Sole trading and partnerships will also take advantage of pass-through taxation whereby revenues and

losses are reported in the individual’s tax return. Nonetheless, sole proprietors are required to pay more

taxes because they are subjected to self employment taxes.

Legal Rights and Regulations

LLCs and corporations have structures and rules and regulations to be followed which includes among

others registering the business name, submitting business reports and finances, preparing and

maintaining business and personal account books and records. Such legislations afford safeguards of

limited liability status as a legal necessity.

Sole traders and partnership entities are less regulated but provide minimum legal defense to their

owners. For instance, in a legal issue, the owner items can be at risk, whereby, the property of the other

party involved in the law suit is seized.

Decision Makings: Selecting the Right Business Form

Choosing the best business form therefore is one of the most important strategic decisions that

companies take based on legal, financial and organisational considerations. It gets even more crucial for

accountants to help their clients through this process of decision making. Some key factors to consider

include:

Liability Protection

Companies that experience high levels of risk in terms of money or the law prefer corporations or LLCs

for their limited liability. Accountants assist in determining the amount of risk a business is exposed to

and whether or not the business requires legal protection.

Tax Efficiency

Accountants analyze how numerous structures impact tax situations where they contribute to helping

businesses achieve their ideal tax situations. For example, there are many organizations that fear to be

subjected to double taxation decide to go for S corporations/ LLCs rather than the C corporations. A sole

trader or Partnership might fit small business or startup better in terms of its tax rate.

Flexibility and Control

Those who would like to have a firm control over the operations of the business may opt for sole

proprietor or LLC firms since the operations of the business are not so tightly monitored as in corporate

businesses. Accountants analyse the client’s objectives for management control and advise them which

of the structures is most suitable for the achievement of their objectives.

Such factors as Growth and Investment Potential.

Stock issuing is also possible with corporations since corporations look for funding to finance their

business operations. Accountants assist the management of organizations seeking expansion on the

advantages of a corporate structure when it comes to financing.

Case Studies: Use by various companies of Business Restructuring and its Legal Aspects

Amazon is an excellent example of Salesforce transformation from partnership kind to corporation kind.

Initially, Amazon was in the form of partnership business. Nevertheless, with growing popularity of the

company and its services Jeff Bezos and his team realized that organizational structure in legal form,

which would offer limited liability and opportunities for financing. That resulted in Amazon restructuring

as a corporation in order to gather investors and to gain millions of capital. It also brought legal shields

for Bezos and the company chairpersons as the business enlarged.

The Change in the Nature of Tesla to a Public Corporation

Tesla began as a startup and was a private car manufacturer, however, to expand its activities and

invent radically new car designs the company requires vast funds. Tesla also floated when it means it

had sold stocks to the general public through a process known as an IPO. The transition offered the

company a limitless reservoir of capital, however it created new and stringent obligations to meet laws

applicable to securities which makes the compliance issue core.

Zappos: Going from a simple Single Proprietorship, to LLC and finally being Acquired by Amazon

Earlier, Zappos was a small shoe selling store that was operated as a sole trader business. With increase

in operation, the founder of the company decided to change its structure from a sole trader to an LLC

with limited liability and with pass through taxation. In the end, Zappos was bought out by Amazon at

over $1 billion doing business, showing that business structure lays an important foundation in

preparing for acquisition.

Conclusion

Knowledge of the legal consequences of various forms of business entities is vital to accountants who

may be involved in defining the responsibility, tax status, and with financial aspects of their clients’

companies. Each type of business formation has its own benefits and drawbacks but they all have

something in common – the best choice is always determined by companies’ legislation and fiscal

conditions. When working with real-world situations of business restructuring, it helps accountants to

give outlooks and suggestions to the businesses, also, to guarantee that such business entities are

shielded legally as well as economically.

8. As a manager, top employee and a member of the board, direct responsibility for ethical and legal

responsibilities in a case could fall on you as an accountant.

Accounting as a profession is an applied field of law and ethics hence it most importantly requires

comprehensive knowledge in law and ethics. This section will discuss ethical theories relating to

business law, distinguish between the legal and ethical responsibility, the provision of whistleblower

rights, the professional legal liability and negligence that may be encountered by an accountant.

Ethical Perspective in the Business Law

Ethics provides crucial information to the decision making process for accountants for the provision

professional, efficient and ethical services. Several ethical theories and standards affect the action of

accountants Different ethical theories and standards affect the actions of accountants.

Comparing Rawls’ Theory of Justice and Kant’s Categorical Imperative

Deontological Ethics: This theory posits that people are motivation by their responsibilities and the urge

to follow the laid down edicts. In ethics when used in accounting it implies that ethic accounting means

acting in accordance with the laws regulations and ethic standards of the society even if the effect will

be undesirable. For instance, an accountant needs to reveal fraud in financial reports as when and how

it is expected, despite the fact that it will lead to negative ramifications on the firm.

Consequentialism: It emphasizes the results of behavior. A number of accountants may consider

prospective effects of the various choices made on the relevant stakeholders, including customers,

shareholders and the general public. For example, the increase of legal tax planning that might be

helpful for a client can produce certain drawbacks such as the deterioration of the attitude of the

population to the profession.

Virtue Ethics: This theory of ethical decision making therefore central focuses on the character and

virtues in solving ethical dilemmas. Therefore, principle of ethical conduct of accountants requires that

honesty, integrity and diligent to be embraced as a measure of ensuring that the professionals will

display requisite professionalism.

Codes of Conduct

AICPA Code of Professional Conduct: For the professional accountants the American Institute of

Certified Public Accountants (AICPA) has developed a code that contains the ethical codes. These

responsibilities include: public responsibility, clients’ responsibility, responsibility towards the

profession, commitment to integrity and impartiality, commitment to independence.

IFAC Ethical Code: The International Federation of Accountants (IFAC) upholds high level of ethical

standards throughout the world through the International Code of Ethics for Professional Accountants.

That is why one might refer to it as an ethical code that considers certain principles as mere

responsibility, including integrity, objectivity, competence, as well as diligence and confidentiality, and

accuracy.

Key Difference between Legal and Ethical Responsibilities

It is important that an accountant makes this distinction clearly because there will be times that legal

requirements of the practice are in violation with ethical rules of the business.

Legal Responsibilities

Legal responsibilities are legal mandates set down by statutes and regulations as well as conduct set by

legal and regulatory codes. Accountants are bound by rules regarding financial reporting, taxation and /

or auditing. If any of the above legal provisions is violated, then the consequences are negative, for

example, penalty, fine, or even revocation of the practice license.

Ethical Responsibilities

Ethical duties go beyond legal expectations and involve fair, proper and right conduct to benefit client,

public and the profession. Ethical standards reveals trust/credibility which are fundamentals of image of

the accountancy profession.

Legal versus Ethical Dilemma

There are cases that legal measures may not be appropriate. For instance, a business formation could

legally manage to avoid taxes through legal means, but this practice can be regarded as unethical

because it may erode trust, and increase inequalities.

On the other hand, an accountant can stumble on situations where it is legal to do something unethical.

For example, an accountant is often ethically or legally justified to not report misconduct by a client,

however, the accountant may feel that it is ethically right to report such misconduct.

Handling Ethical Dilemmas

When faced with ethical dilemmas, accountants should:

Identify the Issue: State the ethical concern and relate it with legal aspect at this stage.

Consult Ethical Frameworks: In order to make an accurate evaluation of possible options of action,

determine the ethic theories and codes needed.

Seek Guidance: Consult with Verbtees or other supervisors, or professional associations asking what can

be done for solving such conflict.

Document Decisions: Msal(name) RECORDS Ideally, documentation of the decision-making process

should be done for the purpose of bringing about accountability and enhancing the degree of

bureaucracy in the decision making process.

Whistleblower Protections

Blow the whistle laws should be adopted to make sure that people within organizations are always held

accountable for their actions. This paper will help accountants to realize that they are capable of facing

unethical and/or illegal actions during their work, and that they have rights and remedies to protect

them when they decide to report such actions.

Legal Protections

Some acts allow for various protections for whistleblowers, and prohibits employers from taking any

action against the whistleblower. In the United States the employees that report fraud and violation of

securities laws are protected by laws such as the Sarbanes-Oxley Act also referred to SOX and the Dodd-

Frank Wall Street Reform and Consumer Protection Act.

A whistleblower can report an organization’s unethical practices without fear of being fired, demoted, or

harassed, from these laws.

Professional Responsibilities

Employees especially accountants who work in organizations that involve in unethical or illegal activities

have the professional and ethical duty to report. Failing to do that could lead not only to loss of public

confidence but also result in a legal implication against the accountant.

Challenges in Whistleblowing

Whistle blowers have severities which they go through in their life and at workplace they include;

isolation, stigma, effect on career etc. Accountants must know legal recourses it has to protect itself as

well as ways of passing information about unethical practices in the organization effectively.

This activity encompasses professional liability and negligence.

To repeatedly make an informed decision, accountants have to be aware of information-sensitive

undertakings so that they can appreciate potential accountabilities that may be attributed to them. This

includes; medical malpractice and negligence which may result from negligence to standard procedure

expected of a professional.

Understanding Malpractice

It means negligence or wrongful conduct by a professional in a certain profession, or in the discharge of

his/her professional responsibilities. This means that Accountants can be sued for malpractice if they do

not offer services as expected of a professional Service Provider.

Common examples of malpractice claims against accountants include:

Neglecting to identifying different and significant mistakes on the financial statements.

This contains giving wrong tax advice that causes clients heavy fines and penalties.

Reporting fake information about a client through violating the confidentiality of the client.

Negligence Claims

Professional negligence is a legal uncordial that arise due to failure of an accountant to exercise

reasonable degree of care expected of him/her causing prejudice to a client, or a third party. To

establish a negligence claim, the plaintiff must prove:

According to the rules of law, the accountant had a legal responsibility for the plaintiff.

That duty was not met by This accountant.

It mentioned that this invasion directly led to injury on the part of the plaintiff.

The plaintiff consequently incurred actual losses as a consequence.

This means that accountants can always minimize chances of being sued for negligence by a following

certain principles such as keeping adequate records, observing professional norms as well as making

sure there are often trainings on business ethics practices.

Insurance and Risk Management

Accountants hold themselves responsible for practicing malpractice through professional liability

insurance or commonly known as errors and omissions insurance. This insurance seeks to provide

coverage for payments made as well as liabilities incurred for a legal process.

Other ways through which accountants can reduce exposure to liability include risk management

practices such as; updating one’s knowledge on the existing laws concerning the job and educating other

accountants in same such ways.

Conclusion

The profession of accountancy necessitates professional, moral and legal principles that govern the

profession. Complex ethical frameworks, client legal requirements, risks, and responsibilities: the

realities that accountants face for their own and their clients’ safety. Legal and ethical responsibilities

are central to logic in the accounting profession, although there is some overlap between them On

protections against whistleblowers and problems of professional liability, it is clear that accountants

must work hard to maintain high standards to promote the relevance of the profession.

9. Legal finesse analysing the following areas: Failure in legal liability Accounting Case Studies.

The profession of accounting has seen many legal failure milestones that not only contributed to

material loss but equally damaged the perception of financial reporting/ corporate governance among

the public. This section will examine three prominent case studies: some examples of legal and ethical

violations in accounting: The Enron scandal, the WorldCom scandal and Some recent examples. Each

case will review the law violations that are present, the role of the accountants and the overall

implications for the profession.

Enron Scandal

The most renowned scandal in accounting fraud in the early part of the twelfth century was the Enron

affair. Enron Business Corporation is another example of a global company failure in broad daylight after

being such a valued business entity in the energy sector before it went down in 2001 through accounting

fraud and thus cost investors and employees of their monies.

Background of Enron

Originally incorporated in 1985, as a pipeline company, Enron Corp. soon diversified its operations,

covering such areas as energy marketing, telecommunications, and even broadcasting. An efficient

market with high- flying stocks by the late 1990s, Enron had quickly transformed into a world-class

company with exceptional innovative growth.

Legal Violations of Financial Reporting

Enron's management employed several dubious accounting practices to misrepresent the company's

financial health, including:

Special Purpose Entities (SPEs): Through SPEs, Enron came up with different and what could be termed

as exotic, off-balance sheet mechanisms to avoid registering for the debts. These entities helped Enron

hide its accounts of receivables and demoralize its accounts of payables in the same instance boost its

records of profits correspondingly putting a facade of a financially sound company.

Mark-to-Market Accounting: It was used in Enron to record anticipated future income from contracts

and not as real profits. This approach allowed the company to book potentials which could never

materialize thus inflating the reported profits.

Role of Accountants

As one of the “Big Five” accounting companies, Arthur Andersen was acting as Enron’s auditor. The firm

failed to uphold its professional responsibility by:

There’s failure to take precautions that ensure participants are on the lookout and let Enron distort their

records.

Destroying documents that were risky with the audits of Enron, which interjected with the investigations

of the appropriate bodies.

Consequences

Enron case cost the company its corporate existence, thousands of employees lost their jobs while

investors suffered billon dollar worth of losses. Therefore, Congress approved the Sarbanes-Oxley Act,

SOX in 2002 with an aim of enhancing corporate governance and accountability to provide accurate

information in prepares and presenting financial statements.

WorldCom Scandal

Telecommunications firm WorldCom featured in one of the biggest accounting fraud frauds in America,

which began in 2002. The scandal brought to light more potent legal vices in corporate governance and

financial stewardship.

Background of WorldCom

It was established in 1983 by introducing itself as the second largest long-distance phone company in

USA and has spread all over the world through several acquisitions. In the early 2000s, the company

experienced some financial problems, as a result, the management resorted to the use of unethical

practices to bolster up the shareholders’ value.

Corporate Governance Legal Deficiencies

WorldCom's management engaged in fraudulent accounting practices, primarily by:

Capitalizing Operating Expenses: Some costs were recognized as operating expenses and other costs

were recorded as capital expenditures when they should not have been in order to make more of the

company’s assets and thereby increase its profit. With this, WorldComwas in a position to present

profits when in fact they were in deep losses.

Inflating Revenue: The top leaders in the WorldCom Company engaged in dear, fraudulent activities in

preparation and presentation of their accounts as a way of disguising their financial state, reality to that

of a healthy company in the eyes of shareholders and other authorities.

Penalties for Accountants and Management

The scandaluality provoked an $11 billion of accounting fraud, and the WorldCom dipped into

bankruptcy, which at the time was record for the United States. Its Chief Executive Officer, Bernard

Ebbers, was blamed for fraud and conspiracy and got 25 years imprisonment sentence.

Although the overwhelming majority of the reporting was on Enron and its officers and directors, the

legal consequence of the fraud touched Arthur Andersen LLP for its failure to detect the fraud. It lost its

license to practice and dissolved, one of the world’s biggest accounting firms.

Some of the Areas of Legal and Ethical Violations in Accounting with Examples In the Recent Past

There are quite a number of other cases that have cropped up in the recent past showing that there is

still a lot of legal and ethical issues in the accounting profession. Consequently, these cases can help to

explain that the necessity to be alive and conscious of one, and ethical rules as well.

Theranos

Theranos is a health technology company that was established to change how blood testing for health

was done but was dragged to court for defrauding investors on its technology. Although it was not a

precise example of central accounting scandal it incorporated serious manipulations with the monetary

statements.

The first company with a dark narrative is Theranos, which was founded by Elizabeth Holmes who was

charged with fraud and presenting false information about the business, and consequently, it is

necessary for auditors and accountants to assure responsibility for verifying the information provided by

firms.

Tesla's Accounting Practices

The mounting pressure on the company in question began in the year 2018 concerning its aspects for

revenue recognition and expenses. This was largely blamed on the company has abusive accounting

techniques that some analyst said masked the real condition of the business. Hence, the case did not

consist of concrete real legal actions but it provoked questions to the accounting standards and the

latter to the responsibilities of an accountant in regard to manipulation of the accounting practices.

KPMG and the Audit Failure

A number of legal matters arose regarding some of its audit clients; KPMG was unable to provide

prevention of fraud at certain of the audited enterprises. Litigation and the subsequent settlement with

the regulators due to the provision of other services in addition to audit services were also highlighted,

as a reason for the firm’s compromised independence.

The sensing and emergence which can be seen here show that constant vigil to ensure that auditors

remain independent and accounting firms performing their ethical duties in protection of public interest

must be upheld.

Conclusion

The analysis of these case examples provides considerable evidence to the significance of ethical

principles and laws in accounting. Enron and WorldCom scandals are good examples that bespeak about

legal violations as well as demonstrate how worse or catastrophic the impact might be and how the

public lost its confidence in financial reporting. Theranos and KPMG are just but the latest examples of

how difficult it is for accountants to remain ethical and/ or maintain the public’s trust.

The accountancy profession as we have seen is rapidly changing and without sticking to the high ethical

standards, being more sensitive to fraud and sticking to the principles of integrity and accountability in

the job we do, then we are in real trouble. This paper discusses how the accounting profession that has

experienced several failures in the past can improve on the lapse of ethics in their practice and regain

the public’s confidence in financial reporting and corporate governance.

10. Future Trends in Business Law for Accountants: What are They? How Do They Affect Business Law?

(2000 words)

The global and regional developments inevitably lead to the integration of the role of accountants into

the developing legal environment and trends. In this part, some promising future trends in business law

of interest to accountants will be investigated, namely, factors such as the role of technology,

international business law, ESG laws, and foreseeing legal issues.

The Effects of Technology on Business Law

New technologies make up the fabric of change in business law and accountants. For the current

generation, emerging technologies of concern to legal systems are blockchain, artificial intelligence, and

digital currencies.

Blockchain Technology

Technological advancement continues to feature in many industries, especially in the area of recording

transactions, through the use of block chain technology, an area with far reaching importance in

financial reporting and auditing.

Legal Implications: With the increasing use of the blockchain system, accountants will be required to

appreciate the legal implications of a distributed ledger system. These are questions concerning the

reliability of information and data, legal requirements for operating in specific countries, and the legal

nature of smart contracts that will pose problems that existing accountants will need to address further.

Artificial Intelligence (AI)

AI is appearing in the working process of accountants step by step and influences the analysis of data

and risks that are assessed in the working process, following the rules and regulations.

Legal Considerations: The use of artificial intelligence results in several easily identifiable ethical and

legal issues relating to responsibility and assessment. For example, once an AI system commits an error

in its financial reporting then it is not clear who has the legal liability – the accountants, the company, or

the AI innovators. The observational-use of information in accountancy can be complex and therefore

accountants must be ready for these challenges and observe the current laws and regulations.

Digital Currencies

The emergence of cryptocurrencies and other such digital currencies generate new issues for

accountancy from the tax, reporting and managing points of view.

Legal Issues: When governments across the globe are discussing the possibility of taxing and regulating

these digital currencies, accountants will need to appreciate legal requirements of disclosing such

transactions, the AML compliance and tax treatment of such assets.

GLOBALIZATION ANDINTERNATIONAL LAW

In international economy environment the legal analysis and the opportunity of an acting accountant

are filled with the challenges and the nuances.

Overcoming Barriers of Cross Border Legal Matters

Some of the risks which face the accountants around the world include differences in legal structures,

tax regimes and regulatory demands in different countries due to globalization.

Case Study: A professional accountant who works for a large company operating internationally has to

familiarise themselves with the legislation in all of the states where the company is situated; this

sometimes means working with the notions of the international tax agreements and transferring pricing

regulation.

Iterative of accounting standards

For accountants working for international clients and operations, attempts to standardize accounting

standards the world over like IFRS are relevant.

Future Considerations: International accounting standards require professional accountants to remain

informed about new changes in the legal requirements of change in international accounting standards

for its clients. Hence, for the purpose of offering correct financial reports and being in compliance with

the laws of the country, this knowledge is indispensable.

Environmental, Social and Governance (ESG) Laws

Thus, as the two concepts advance even further in the business world, the accountants are aware of the

ongoing changes in ESG rules affecting their legal obligations.

Evolving ESG Regulations

The various governments and regulatory authorities around the globe are strengthening the ESG rules to

make companies report over their vulnerability to ESG issues.

Accountants’ Responsibilities: This is due to the fact that accountants will help in implementing of these

regulations by reviewing the ESG disclosures and evaluating sustainability on the organisations financial

statements. This may entail efforts towards identifying ways of providing measures on the firm’s

environment compliance and on the implementation of social governance accountability.

Hussain, G. (2020): The Growing Importance of ESG Reporting

ESG risks and opportunities are flowing up through the organisation with more pressure on accurate

reporting and assurance.

Legal Implications: Failure to the ESG standards and guidelines attract legal consequences such as fines

and results in challenges while managing company reputation. The legal risks associated with ESG

creation and disclosure must be known to the accountants so as to assist organizations to deals with

them.

The Third is to anticipate future legal challenges.

In Legal environment changes are likely to take a newer turn in the future and hence, the accountants

should be ready to handle the emerging legal environments such as data privacy laws and cybersecurity.

Data Privacy Laws

As the value of online coordination rises in different corporations, data protection laws are tightening.

Laws including the General Data Protection Regulation from the European Union and personal state

laws in the United States set many standard rules for companies on the use of personal data.

Accountants’ Role: In this case, accountants must assure their clients that they adhere to applicable data

privacy laws as far as handling and reporting issues are concerned. This may include the analysis to

check which regulation is being followed and creating procedures for data protection.

Cybersecurity Risks

Cyber threats beg new legal risk for businesses: possible liabilities for failed security and lost financial

data.

Legal Preparedness: CYBER SECURITY RISK For accountants to help organizations manage their risks,

they need to know the legal consequences of cyber-attacks. This includes identifying the reliability of

internal control mechanisms, and reviewing some legal provision on cyber security.

Emerging Legal Risks

Like any other profession, accountants have to live in anticipation of new legal risks that may arise with

change in technologies and business practices for instance new laws governing the use of Artificial

intelligence and automation in business.

Proactive Approach: Thus, the key activity of accountants should be to read more on trends, rules and

emerging legal and compliance requirements for risk management in various industries.

Conclusion

Looking at the future of business law for accountants, the following trends are evident: advanced

technology in the business world, increase globalization, development of ESG rules, and new legal

issues. These trends in turn affect the legal consideration of the accountants and their work since they

take into account the laws that may govern such operations and reporting.

Hence it is crucial to learn about and be proactive as regards such changes in overcoming the odds

created by the complex nature of the changing legal environment and risks that pose a threat to the

reputation of an accountant and the accounting profession as a whole. Arguably, the new and complex

environment in the business world will mean that accountants holding the status of trusted advisors will

have to step up in the fight against ethical issues and noncompliance.

Conclusion

In this conclusion, the primary topics analyzed in the essay on advanced business law for accountants

will be reviewed, the significance of accountants in maintaining the organizations’ legal positions will be

stressed, and a prompt for further education of business law will be provided. This summary will sum up

the legal aspect of knowledge necessary for accountants to function in the present and future complex

environment.

Recap of Key Themes

From the brief look at some of the more advanced business law for accountants the following are some

of the issues that have been highlighted as important that relate to the need for legal knowledge within

the accounting profession. Throughout this essay, we have delved into various dimensions of business

law, including:

Understanding the Legal Environment: The first paper started with the basic concerns of business law,

followed by the comparative study of the legal systems in different countries, and the significance of law

and law compliance in business. To be precise, understanding the sources of law: statutes, regulations,

and case law enables an accountant to appreciate the legal requirements within which business

operates.

Contract Law for Accountants: Having carefully considered the place and significance of contracts in the

operation of business entities, this thesis can conclude that contracts undoubtedly fulfill a significant

function in the running of business entities. We discussed and discussed the basic features of contracts;

the various types of contracts that accountants come across in their operation; and the law regarding

breach of contract. Contract law knowledge enables accountants to deal with financial issues that are

linked to agreements while keeping the businesses legal one their sides to defend against possible legal

cases.

Corporate Governance and the Law: Corporate governance principles are important because they

provide guidelines for corporations to follow in all their business dealings with the provision of requisite

transparency as well as accountability for each of the business decisions made in the course of their

operations. We looked at how legal factors impact on corporate governance legislation like the Sarbanes

Oxley Act, and stressed the part played by the accountant in maintaining legal standards. Not only do

accountants prepare figures that go into reports, but they maintain the accuracy necessary for

stakeholders to have faith in.

Regulatory Compliance and Legal Responsibilities: In the case of regulations, the discussion made it clear

on those regulations that most apply to accountants such as, rules set by the Security and Exchange

Commission and those that revolve around anti money laundering. When discussing the legal

requirements of accountants, we examined duties that may be followed concerning the reporting of the

accounting standards and risks that may be incurred in the event of failure to report the said standards.

This knowledge is important for accountants so that they are able to prevent, or where necessary, fight

legal actions while keeping their clients on the right side of the law.

Tax Law and Its Implications: From such a view, taxation law remains one of the key pillars of knowledge

within the expertise of an accountant because it comprises legal advice on taxation and compliance

thereof. Thus, by pointing the differences between tax evasion and tax avoidance, the accountants who

operate in the legal environment can advice their clients in the contexts of both – legal wiles and ethical

standards.

Business Structures and Legal Considerations: Business organization can be classified in to several

categories: corporations, partnerships, limited liability companies, sole trader and each has its own legal

entity. Business structure is a legal structure and therefore accountants are very central in helping

clients determine the best legal structure for the business. If one does not have the corresponding

understanding of this issue, then he will have great difficulty in learning how to effectively minimize legal

risk and increase their positive tax treatment.

Ethics and Legal Responsibilities: The following proposition was made; Concerning the technical and

requisite skills of an accountant, ethics and legal responsibilities of accountants regarded as core

professional concerns in accounting. I analyzed what ethical theories are, what the role of codes of

ethics is, and why the accountants need to understand when legal requirements may be unethical. Legal

compliance requires a solid ethical reference point as a way of exercising compliance to the law and

sustaining public trust at the same time.

Case Studies of Legal Failures in Accounting: Further the discussion of samples like the Enron and

WorldCom failures demonstrated the course and consequences after legal and ethical breaches in the

accounting discipline. These case studies are rather examples with focus on personal and professional

ethics for any practicing and aspiring professional.

Future Trends in Business Law for Accountants: Lastly, the subject of new trends was covered, with

reference to technology, globalisation, ESG regulations and predicted future legal changes. These

legalities should always be looked at and the accountant must always be prepared for them in order to

avoid the breaking of any of these rules and to ensure full protection of the client’s interest.

Legal Requirements that Accountants Perform

Perhaps one cannot overemphasize the function of accountants in meeting the legal requirements.

Accountants are important intermediaries between organizations and the respective legal requirements

of their operations. They for that reason, have the capability to assess and interpret laws so as to advise

organizations on ways of avoiding legal pitfalls, and their consequent penalties.

Advisors and Guardians: More than ever, accountants are relied on as consultants; they assist

businesses in various legal matters and provide key decisions that meet legal compliance. The

responsibility goes beyond that of mere compliance; accountants provide insights into legal issues and

offer recommendations about how they might best be addressed in the planning of the organizations.

Ensuring Transparency and Accountability: Having regard to the increased emphasis on transparency,

accountants serve essential as agents of integrity and corporate governance. Due to these code of legal

standards and professionalism, people like – accountants make sure that the general public relies on the

right people as far as financial reporting matters are concerned and at the same time, do not violate set

ethic standards.

Facilitating Communication: The accounting professionals act as the focal liaison of companies related to

legal frameworks. They support communication processes and guarantee the submission of all the

required documents both complete and timely. Compliance management that is taken before an non-

compliance happens minimizes legal consequences while at the same time building good relations with

the law enforcement bodies.

Continuous Monitoring and Adaptation: Because legal conditions are constantly changing, accountants

are required to perform monitoring of changes in the legal provisions. This diligence helps them keep

practicing in a way that BERs stays out of legal troubles amid ever-changing legal norms.

Call to Action

Bear in mind, that, in broader sense, what the given essay shows to the reader is the fact that

accountants have to operationalize business law regularly. :The law is not static and in case of

accountants it is good to have the pointer on the changes that shall facilitate the discharge of their

duties.

Lifelong Learning: The legal environment hence expects accountants to adopt continuing professional

development through seeking means of enhancing the legal knowledge. This might be done by enrolling

for business law and compliance classes, attending classes in business, choosing web business meetings

and other classes to attend among others.

Staying Informed: There is information concerning legal developments, changes in regulations, and most

effective policies within the field of accounting that is crucial for accountants. By reading trade

magazines, affiliate association memberships, continued conference attendance and participation

accountants can continue to stay abreast of the changes.

Collaboration with Legal Experts: P1- It is recommended that accountants integrate legal experts in

order to develop broad perception of legal phenomena. In this way, accountants are also able to

strengthen their professional relations with attorneys and legal advisors that improve the way legal

issues are solved, accordingly.

Promoting Ethical Standards: It means that accountants should promote high ethical standards for their

organizations, as well as for the whole profession. This ethical responsibly helps the individual

accountants not to be posted or mislead to be involved in ethical dilemmas and it also enables the

accounting fraternity to maintain its image.

Embracing Technology: The ever advancing technology in the business world means that accountants

should embrace technology that support compliance and their working. The knowledge of legal

ramifications of emerging technologies will therefore help make accountants better equipped to advise

their clients.

Conclusion

In conclusion, it is possible to assume that business law knowledge is needed for accountants. The legal

environment is complex, and professional accountants are significant in maintaining the law, publicity,

and responsibility in the preparation of financial statements. Thus, insight into the legal areas presented

in this essay will help the accountants develop an appreciation of the business law issues and shield

their clients from any legal pitfalls.

On the same note, further education in business law will be necessary in the accountants’ toolkit as the

business environment changes progressively. ACCOUNTING ESSAY In my consideration, the aspects of

professional competence, update with trends, and ethical apportion reflect the quality and recognition

of the accountants, and their contribution to theappropriateness of the profession as well as adding to

the accomplishment of the organizations for which they work. The subject of the article is a discussion of

the ways in which the future of Accounting is tied to the legal frameworks which you, as an accountant,

are going to need to address.

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