英语论文网

auditors and supervisors

For auditing by SOX, companies must prepare over 1000 pages/report and for complete the report, companies when auditing need hire a great number auditors from audit firms and beside that, they need made the supervision department for supervise these auditors for ensure the integrity.

Etca€| At the basic, SOX Act will make arguments of everyone for a long time and it's a story never ending process.

With these regulations, standards, law has applied of IASC, US GAAP; UK GAAPa€| was raised researches and analysis about difference standards.

不同标准的优点和缺点——Advantages & Disadvantages of difference standards

Advantages: With existence of IFRS, US GAAP, UK GAAP and Company Law, etca€| the economic activities of a company is best reflected in its financial statements by complying with the standards of country in which it operates. The national standards are frequently updated and modified to suit with globalization environment. New recent standards will replace the disadvantages of old standards and add the new regulation. For example, IASC after change to IASB, they keep all suitable IASs of IASC and issue their own standards (IFRS) to reflect the dynamic environment.

Disadvantages: Multinational companies get confused in finding and applying standards and regulations in preparation their financial statements. For example, US companies operate on UK market, their financial statements comply with standards of UK GAAP but maybe their financial statements not comply with US GAAP, and they must modify financial statements. This process takes time and expense of those multinationals. Recently, FASB and IASB have worked together to ease the difference of US GAAP and IFRS using three steps:

1. The FASB and IASB identified short- and long-term convergence projects in their 2006 'Roadmap for Convergence.'2 The accounting topics mentioned in these convergence projects are listed in two tables, and key differences between IFRS and U.S. GAAP are provided.

2. A few additional accounting topics not addressed by either convergence project are noted, and key differences are highlighted.

3. The actual impact of the key differences on net income is illustrated using Form 20-F reconciliations of IFRS-based net income compared to that computed using U.S. GAAP.

Although finance professionals were explained why need difference standards but is there too much regulation? In fact, these regulations and standards always created by scandals, problems, cheatsa€|of companies (example: Enron die - SOX Act created) and every nation should create specific regulations for them because they are different. If companies no scandals, problems and clear fair, federations accounting won't severe with them but in the modern business environment, these problems always exist and need specific regulation to prevent these critical problems. Especially, Viet Nam government should based on international experiences to modify regulations of VAS (Vietnamese Accounting Standards) for manage finance companies in Viet Nam.

Finally, almost regulations of finance statements are suitable and necessary in the modern finance environment.