Accounting Issues: Current Development in Accounting

Accounting Issues 1
Current Development in Accounting

Accounting Issues 2
Introduction
The main purpose of this report is to demonstrate the accounting issues in the management of
accounting system of companies which are headed under the accounting standards and
reporting system. The report is developed over an accounting issue based news article in
which the news article of Global Finance is assessed that discusses about the accounting
issues as audit failure in the large scale companies. Along with this, the determined
accounting and auditing issues are linked with the theories and explanation. Moreover, the
concluding significance of accounting is also elaborated with reference to the identified
accounting problems.

Accounting Issues 3
Question 1 Accounting issues
Copy of Article:
Name of Article Chosen: Auditing and Auditors
Author: Craig Mellow
Name of Magazine: Global Finance
Source of the Article: https://www.gfmag.com/magazine/julyaugust-2018/auditing-auditors

Accounting Issues 4
Discussion about the article:
The Global Finance has published the news about the auditing and accounting failure which
has resulted into the new scrutiny of business practices for big accounting firms. Craig
Mellow has presented the information about the falsification of accounting and auditing.
From the review of article, it is determined that the UK house presented a report on the
collapse of Carillion which has got into the wind up of its business practices. The main
reason behind the liquidity was due to the creditors as the creditors own the amount as £1.5
billion ($1.9 billion) from the accounting operations. In this article, the issue of auditors for
company to retain the accounting for a century as General Insurance Company and the results
obtained as $15billion charge (MELLOW, 2018).
In addition to this, the issue of eliciting the confidential information from the six partners of
KPMG plc is also came into the light. In a report, the partners of KPMG were founded a
fraud for detecting the confidential information so the issue for KPMG has also up shored
and shareholders do not want to keep the KPMG as auditor for the Company. Moreover, the
PWC plc has also face the issue of detecting the fraud of $2.3 billion in Alabama-based bank
but it was not successful so the Pwc plc bears the loss due to the damage. The whole
insurance reserves for the company have created a problem about reporting the information.
Apart from this, the KPMG has also face the issue of having relationship with the Gupta
family of South Africa and the family was also close to the president of Jacob Zuma.
Moreover, the author has also described the frauds and scam and related provisions in the
accounting and auditing. In relation to the discretion about the KPMG Company, it is also
assessed that the company has also employed the junior auditor so the accounting firm can
face the challenges from its typical competitor (Basak, Chiglinskyand and Clough, 2018). In
addition to this, the author has also levied from 2002 Sarbanes-Oxley law which was brought