Articles on Public Companys Finance - Paper Example

2021-07-29 16:46:16
4 pages
878 words
University/College: 
Harvey Mudd College
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Article review
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ARTICLE NO. 1:

How Budget Carriers Transformed the Airline Industryin 14 Charts. (2017). Cetusnews.com. Retrieved 29 October 2017, from http://www.cetusnews.com/business/How-Budget-Carriers-Transformed-the-Airline-Industry%E2%80%94in-14-Charts.SJg_Zvh1mj_W.html

Budget airline ventured into the field of the airline to offer affordable air transport for the passengers who could not afford fare for other prestigious airlines. Their strategy had a substantial, tremendous and iconic influence on its performance in the market. According to the several charts provided by the International Airline Transport Association, Budget airlines performance is far better as compared to their competitors. What we can say, the reduction of airline fare by budget, led to the increased demand for their services, across the continents, consequently leading to serving more than one hundred airports, and operating in more than twenty-thousand airline routes. The price was determined according to the current inflation rate of different regions in the world.

The cost by pay packages are less generous hence the employees of such carriers are above the wage scales, therefore, they have unions and have a large pension obligation.

The cost that has been kept low by the discount career is the employees expenses since their employees are below the wage scale, the enjoy the benefits of not obliging to the pension together with the costs that come with the employees union.

The low-cost carriers have changed the outlook of the international travel by the support that they have got in the market, whereby people indeed embraced their low-cost fare. As compared to other prestigious airlines, the low-cost carriers have ensured that they make air transport for the people who could not afford to pay for a lot to travel. Progressively, the low-cost airline has had the increase of the counties that they serve, the airline routers that they operate, the airports that they serve and having an immense portion of the US domestic airline market share. The performance of the low-cost carrier has tremendously improved as compared to the prestigious ones who charge exorbitantly for their fares.

ARTICLE NO. 2:

PricewaterhouseCoopers to Settle Brokerage Audit Allegations for $1 Million. (2017). Fox Business. Retrieved 29 October 2017, from http://www.foxbusiness.com/features/2017/08/02/pricewaterhousecoopers-to-settle-brokerage-audit-allegations-for-1-million.html

The details of the settlement was that, PricewaterhouseCoopers to Settle Brokerage Audit Allegations for $1 Million

The parties involved in the settlement include PricewaterhouseCoopers LLP, Brokerage Audit Allegations, Public Company Accounting Oversight Board, and Bank of America.

The term PCAO refers to Public Company Accounting Oversight Board; its duties include registering of the public accounting firms, quality control, auditing establishment, conducting investigations, inspection as well as disciplinary procedures of enlisted accounting firms. The role of PCAO in this dispute and settlement is to oversee and investigate the issue brought by the two warring parties.

The big four refers to the biggest and reputable proficient service network globally, providing assurance services, auditing, management consulting, taxation, corporate finance, actuarial, advisory, as well as legal service. The big four accounting forms include PricewaterhouseCoopers LLP, Ernst & Young, Deloitte & Touche, and KPMG.

The difference between the big four and the rest of the local auditing company is because of their coverage, the big four cover the international region and have built a lucrative reputation in the auditing industry as compared to the local ones which are geographically limited. The career opportunity of working in the big four auditing firm is include, auditor, actuarial, quantitative analyzer, lawyer, as well as legal advisor and consultant. There are risks involved in working g in either the big four auditing companies or in the local auditing companies. Their SWOT analysis is as follows.Big four Auditing companies Local Auditing companies

Strength They have a positive reputation hence they get more clients. They offer services at a considerable price as compared to the bug four Auditing companies.

Weakness They are exposed to various international risks that involve many of the companies that they audit. They are limited to the geographical area that they serve.

Opportunity Top companies prefer their services due to the reputation that they had already created in the industry. Many of the companies that they dont want to spend a lot in auditing prefer the local auditing companies.

Threat Competition forms the local auditing companies. They face competition from the big four auditing companies.

The PwC made the settlement of the dispute as for the way of settling the dust', to avoid controversies that will surround the company hence leading to ruin of its long-standing reputation. PCAOB acknowledged and commented the step taken by PwC because it knew that, if they had failed to resolve this matter, then it will haunt its progress in the future years, and customers will have no faith on their operations.

The wrongdoing committed by PwC was failing to discover that brokerage unsuitably left billions of dollars in the customer's assets, therefore exposing to creditors claims. Actually, the firm committed the act of failure since they need to give an account of each dollar that they are auditing hence they were penalized for ignorance and negligence.

References

How Budget Carriers Transformed the Airline Industryin 14 Charts. (2017). Cetusnews.com. Retrieved 29 October 2017, from http://www.cetusnews.com/business/How-Budget-Carriers-Transformed-the-Airline-Industry%E2%80%94in-14-Charts.SJg_Zvh1mj_W.htmlPricewaterhouseCoopers to Settle Brokerage Audit Allegations for $1 Million. (2017). Fox Business. Retrieved 29 October 2017, from http://www.foxbusiness.com/features/2017/08/02/pricewaterhousecoopers-to-settle-brokerage-audit-allegations-for-1-million.html

 

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