Case Study Answers

Case Study Answers

Difference in Financial Objectives

Yes financial objectives do differ between a free market economy and socialist market economy. China fully understands that a sound financial reporting system plays a key role in the process of economic development. The Chinese Ministry of Finance (MOF), who has the responsibility for regulating accounting matters in China, has set itself the objectives of fostering investors' confidence in financial information, increase transparency of financial reporting, and harmonize with International Financial Reporting Standards (IFRS), so as to reduce the costs of raising capital by enterprises and alleviate the risks of financial crisis. The pragmatist leadership is, therefore, willing to allow more "hard budget" constraints on state-owned enterprises, resulting in some increase in bankruptcies and unemployment, for instance, but not too much or too fast (Balogh, 2006). They are open to continued liberalization of financial and housing markets in order to entice more of China's citizen's savings into productive use, but want to keep a tight rein on speculation and inflation. In other words, the Chinese leaders believe the market can operate efficiently in sending information and generating responses to information, but sometimes the information sent and the responses initiated are not conducive to social welfare, social peace, and the long term development of the Chinese nation. Indeed, it is considered possible that an unfettered market could generate an economic crisis that would have among its outputs increased poverty, increased crime and corruption, and a diminution of China's ability to remain a cohesive nation-state. For the Chinese leadership, the market mechanism is rife with contradictions (Berger, 2008a). It is an effective tool for solving some problems, yet creates other problems. It is akin to a wild horse that, when tamed, can be used effectively to get more done, but always has the potential to once again go wild and cause havoc.

In 1993, with funding from the World Bank, the MOF engaged Deloitte Touche Tohmatsu as consultants to develop a body of Chinese Accounting Standards (CAS) broadly in line with accounting and financial reporting practice used internationally (Berger, 2008b). Exposure Drafts on about 30 standards have since been published. In 2000, DTT was reappointed as consultants for the second phase of the project.

Independent Audits of SOE and U.S

Establishing audit policy is an important facet of security. Monitoring the creation or modification of objects gives you a way to track potential security problems, helps to ensure user accountability, and provides evidence in the event of a security breach.

There are nine different kinds of events you can audit. If you audit any of these kinds of events, Windows® records the events in the Security log, which you can find in Event Viewer (Black, 2003).

Account logon events

Audit this to see each instance of a user logging on to or logging off from another computer in which this computer is used to validate the account. Account logon events are generated in the domain controller's Security log when a domain user account is authenticated on a domain ...