Discussion 1: "Accounting Quality"
Respond to the following:
• The Sarbanes-Oxley (SOX) Act was created with the intent of improving the quality of accounting, reliability of financial statements to investors, and providing oversight to accounting professionals through the creation of a new federal agency, Public Accounting Company Oversight Board (PACOB). Create an argument supporting whether SOX achieved these goals, and whether financial data reported today is more accurate and reliable than prior to the Act. Provide support for your rationale.
• Assess the impact to the Public Accounting Profession with the creation of the PACOB and the inability of the profession to be self-regulated. Indicate your level of support for the federal regulation of the profession. Provide a rationale for your response.
Discussion 2: "Restated Financial Data"
Respond to the following:
• Assess the impact to public trust when a publically traded company restates its financial data, indicating how negative impressions may be minimized. Provide support for your rationale.
• Evaluate the current trend of companies restating financial statements. Indicate the key drivers of this trend. Predict the trend over the next five years, providing support for your rationale.
Discussion 3: "Forecasting"
Respond to the following:
• Assess the financial performance forecasting process, identifying the assumptions made that are most likely to cause a gap between the forecast and actual performance. Indicate how these gaps may be minimized. Provide support for your rationale.
• Create an argument supporting the value of forecasting to an organization. Provide support for your argument.
Discussion 4: "Dividends"
Respond to the following:
• Assess the market and shareholder behaviors when a publically traded company makes the decision not to pay dividends to its shareholders, suggesting how management should react to these behaviors. Provide support for your rationale.
• Evaluate the factors that an investor may consider when deciding whether or not to invest in a company with a policy of non-dividend payments. Indicate whether or not you believe this a prudent choice for some investors. Provide support for your rationale.