Financial Reporting: Its Current Evolution
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My internship took place at First National Bank Valparaiso located in northern Indiana. Here I learned what it means to think as an auditor. The critical thinking while being forced to examine the potential risk of various factors to the bank's well-being has given me knowledge that will be extremely useful in other aspects of business. I also learned a general overview of how each department in the bank functioned. Based on this experience I began to research financial reporting and its current state of evolution due in large part to the Enron and World Com scandals. Out of this research came many solutions to implement a stronger accounting and financial reporting industry. However the current state of financial unrest is such that there is no one solution, but rather a combination of reforms are necessary to reestablish the integrity of America's financial markets. The conclusions drawn from my internship and research took the form of a plan. This plan consists of four parts to reestablish stability to the financial markets. These four are preventative regulation in the form of internal auditors and strengthened GAAP rules, a reactive structure such as an independent regulatory body under the SEC, more severe penalties as created by law and the regulatory body, and finally a return to simple ethics. These solutions have begun under the Sarbanes-Oxley Act and hope to continue evolve and establish stable financial market place.