Vegas accounting firm shut down by the SEC

SUMMARY

Though common issues in local or major businesses occur quite often, I was intrigued to know that this article included the fault of promoters from B.C. By looking in depth in the Vancouver article, I found that even CPA's like Micheal J. Moore can be the most skill lacking professionals. Moore was in charge of an accounting firm named Moore & Associates in which the employees were given minor jobs for instance filling out checklists. In addition to these circumstances, public shareholders were shocked to know the shares they held were forgeries and the result of a $900,000 profit to a 4.3 millon dollar loss. Also many mining companies were displeased to know that the financials reports they had given were being treated carelessly. From all this evidence the SEC voided the firm's authorization and discharged Moore from progressing under any public accounting assosciation further on.

CONNECTION

The connection is related to the accountant Moore. The connection primarily concerns the work of an audit which Moore contravened as a CPA. A proficient auditor with a CA qualification would have maintained a standard organization following most principles of accounting and the audits precisely managed which in truth Moore lacked. For example the SEC assumed the firm`s audit ``were so deficient that they amounted to no audits at all.`` Besides being an indolent auditor he also didn`t follow one of the GAAPs, the principle of conservatism which indicated that ones business should be fair and reasonable. Assuming that with these circumstances the SEC had the right to conclude his qualification as an audit.

REFLECTON

As a certified accountant Moore should have managed the business with a proper and fair approach but instead pursued his own path which followed up to a dilemma. By not following the principle of conservatism, he not only went against the proffession as an audit but also burned the reputation of truthful accounting corporations. Aside from causing inconvenience with the SEC he also left public shareholders with nothing but paper. Despite that he was acting fragulent, we should take this into consideration and beware of these situations during our future years. Because you never know when these circumstances could occur to you...

http://www.vancouversun.com/business/shuts+down+Vegas+accounting+firm+favoured+promoters/1948817/story.html