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Thesis Statement: Responsible actions result in productivity mainly because of a strong foundation.
In the architectural field, a cornerstone is a stone that represents a starting place in the construction of buildings. This stone is such that it acts as a strong point and establishes a way forward in the construction sector. Cornerstone Research is a firm that offers clients a starting place in any legal cases. Cornerstone research states, "Cases involving write-downs are also associated with large issuer defendants" (p. 17). The research team provides Attorneys with high quality expert witnesses in complex financial, economic, accounting, and marketing issues. The Cornerstone Research team analyzes the key issues with the case to align before providing the relevant ideas on the way forward. Cornerstone Research specializes in security's pricing, risk management and market micro-structure among other fields. This applies mainly in the phase of complex rightful authoritarian proceedings. Equipped with this information, the Attorneys work on the information a firm provides to develop a strong legal proceeding.
Under the amendment of the Adviser’s Act of 1940, Cornerstone Research registered itself under the Securities and Exchange Commission. It oversees key participants including investment advisors and security brokers. It concerns itself with promotion and discovery of imperative business-related information. SEC also maintains fair dealings and protects investors from fraud. Other roles of the Securities and Exchange Commission are to protect those who invest, maintain the business and capital formation. Since the Cornerstone Research and Securities and Exchange Commission play similar roles, investors are sure of legal protection, and this motivates the new ones. It is the work of the commission to develop new rules and amend the existing ones.
Investment and credit communities contribute in the country's development as if people’s failure to invest in the country’s economic condition remains constant. In such a country, developments and investments are essential in improving the country’s living standards. As the cornerstone research reveals, encouraging people enables them to perform to their level best especially in their area of specialization. This goes a long way in increasing the national output.
Robocop is an automated machine that searches oddities but cannot account for errors that people make. This means that the introduction of robots in companies may improve most of the mistakes they make in their performance. A risk scorecard will evaluate the performance to check the credibility of the industry. The results from the analysis of the Robocop will be the basis for enforcement of ways in which to direct resources in future. Companies that are capable of minimizing their risks will not face unnecessary audits by the SEC.
Unpleasant issues could cause a company to undergo close examination on the reasons of a decline in its performance. Research highlights this as a principal way in which the security and exchange commission goes about its duties. Under this, there can be prosecution of one that is responsible for wrong doings. Companies should account for policies that are similar to those of their peer companies. In this case, the Robocop analysis involves a comparison of the accounting choices with a peer company. This should apply even in the risk disclose in that the two companies could have similar risks. Any diversion of the company from its goal orientation may cause Robocop to ring a bell. This could act as a warning and encourage the management to take appropriate measures to avoid the questioning by the security and exchange commission.
According to Novack, Robocop's objective of identifying earnings, Robocop provides a transparent way of dealings in companies (n.p). This is because they relay all the information in truth and openness. There is no hypocrisy because a machine performs the tasks. One of the essential means for a steady production process is the reduction of the transactions that accountants fail to record in the balance sheet. Accounting for the off-balance sheet transactions will result in a balanced financial report. This would also result in a significantly higher figure than the Peer Company. About the Cornerstone Research Report, this will reduce the number of accounting cases filed against companies in the business sector.
In the year 2013, The CVS CAREMARK CORPORATION Company settled all the cases filed against it. This included files against purported civil enforcement for injunctive relief, damages, and civil penalties in Travis County. The company had received civil investigative demands from the Attorney General’s office. It was requesting information by OIG subpoena and details pertaining to the dispensation of Medicaid assertions. The company received a notice from the security and exchange commission requesting information on public disclosure by the company and accounting for drug store acquisition. It managed to produce all the necessary documents, and the SEC cleared it. Since there was no mention of the payments as the case concluded, one can conclude that it did not pay any. Deductions can be that the business improved its services and met the required standards that the Securities and Exchange Commission found relevant. Cornerstone Research reveals that the SEC has made it clear that it had renewed its focus to identify accounting-related fraud (p. 2).
Breaches are actions that people make to avoid consequences of the law agreement or code of conduct. An ethical framework helps a company to embrace ethical practices. Breaching any agreement not only affects an employee’s conscience but also the entire company. It also affects their productivity and causes an overall decline of the output. Dilemma also arises when a company fails to secure sufficient funds to fulfill all the law’s stipulations. This breach acts as a hindrance to an individual’s production and the entire business.
When a company or employee breaches the law, their actions may result in legal action, closure of the business or imprisonment. This means that there will be no productivity or investments, and this will result in massive losses. Any business that wishes to succeed in the market ought to pay attention to income generation and sets greed aside. This means the payment of the necessary dues and production of the best goods or services. It is imperative to note that breaching of the law translates to the production of low quality goods or services and, therefore, minimal profit. The Security and Exchange Commission stipulates that all companies follow all the legal procedures to avoid dire consequences. Breaching the law in this case means that the goods that the company produces do not meet the consumer’s needs. It is the role of security and exchange commission to protect the consumer from unpleasant experiences. Conclusion
Accounting is imperative as it prevents complications in investment. It also helps a company develop trust from investors and assures them of a secure place to invest their money or ideas.
Cornerstone Research. Accounting Class Action Filings and Settlements. (2013): 1-17. PDF File.
Novack, Janet. How SECS New Robocop Profiles Companies For Accounting Fraud, 8th Sept. 2013. Web. 11th May 2014.