Assignment: Accounting Quality
Based on the requirements of the Sarbanes-Oxley Act and SEC reporting requirements for publicly traded companies,
Write a four to five page paper in which you:
1. Evaluate the critical elements of accounting quality. Compare and contrast balance sheet quality with earnings quality. Explain why both are important to financial statement readers.
2. Share one example of earnings management, explaining how it might be perpetrated and ways that investors might detect such behavior.
3. Examine the role of the executive leadership team (e.g., CEO and CFO) in establishing an ethical environment and corporate culture that promotes high quality financial reporting.
4. Assess the potential consequences for a publicly traded company when accounting quality is inadequate. Explain how management might minimize those consequences.
5. Evaluate the requirements of the Sarbanes-Oxley Act regarding accounting quality, indicating whether the current provisions are adequate to protect stakeholders. Support your position.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.