Premium Essay

The Legal Regulation of the

In: Business and Management

Submitted By litiecho
Words 50477
Pages 202
THE LEGAL REGULATION OF THE
EXTERNAL COMPANY AUDITOR
IN POST-ENRON SOUTH AFRICA

Hannine Drake

THESIS PRESENTED IN FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF
LAWS AT THE UNIVERSITY OF STELLENBOSCH

Supervisor: Prof A.H. van Wyk

March 2009

ii

DECLARATION
By submitting this thesis electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the owner of the copyright thereof (unless to the extent explicitly otherwise stated) and that I have not previously in its entirety or in part submitted it for obtaining any qualification.

Date: 25 February 2009

Copyright © 2009 Stellenbosch University
All rights reserved

iii

ACKNOWLEDGEMENTS

In acknowledgement to all who have contributed to this work in some form: writing this thesis would have otherwise been like swimming through mud. To my supervisor,
Professor Andreas van Wyk, thank you for your leadership, patience, and academic skill in guiding me through the research process. To Adéle Mulder and Charl Marais, thank you for your continuous insight and perspectives, both academic and otherwise.
And finally to Hilda and Gerrie Steyn, who have been absolutely crucial throughout all my years of study, thank you for your indispensable support, in all its forms.

iv

SUMMARY

The worldwide increase of corporate failures on the scale of Enron and WorldCom has sparked a renewed international trend of corporate governance review. With the external company auditor blamed at least in part for many corporate failures, corporate governance reform also necessitates a review of the statutory regulation of the company auditor. In particular, the lack of auditor independence when auditing clients has been under the legislator’s spotlight. The problems associated with unregulated or poorly regulated auditors are well...

Similar Documents

Free Essay

Legal Regulations

...15 Lab #2 - Assessment Worksheet Case Study on U.S. Veterans Affairs and Loss of Privacy Information Course Name and Number: _____________________________________________________ Student Name: ________________________________________________________________ Instructor Name: ______________________________________________________________ Lab Due Date: ________________________________________________________________ Overview In this lab, you reviewed a real-world case study that involved the loss of privacy information, and you analyzed what violations occurred, the implications of those violations, and the possible mitigation remedies that could prevent future violations. Lab Assessment Questions & Answers 1. What is the difference between privacy law and information systems security? How are they related? 2. Was the employee justified in taking home official data? Why or why not? 3. What are the possible consequences associated with the data loss? 4. Regarding the loss of privacy data, was there any data containing protected health information (PHI) making this a Health Insurance Portability and Accountability Act (HIPAA) compliance violation? 5. What action can the agency take against the employee concerned? Copyright © 2014 by Jones & Bartlett Learning, LLC, an Ascend Learning Company. All rights reserved. www.jblearning.com Student Lab Manual 16 | LAB #2 Case Study on U.S. Veterans Affairs and Loss of Privacy Information 6. Would...

Words: 434 - Pages: 2

Premium Essay

Legal, Safety, and Regulation

...Legal, Safety, and Regulatory Requirements HCS 341 July 4, 2011 Legal, Safety, and Regulatory Requirements The phrase ‘common sense and compassion in the work place has been replaced by litigation’ is common in a majority of workplaces. Litigation is defined as carrying on with a legal contest by judicial process (Merriam-Webster, 2011). The phrase indicates that legalities have taken over the process of personally making sound judgments and being personally being aware of others issues. Concentration on workplace safety, legal issues, and other regulations has taken precedence to many aspects of our employment; in some cases, more so than customer satisfaction. The customers’ wishes and treatment in the past was always thought to be the most important thing and something that should never be negotiated. However, government and regulatory agencies have indicated that safety and legal rights of the employer, employee, and customer should be protected and primary concern. The Occupational Safety and Health Administration (OSHA) as well as the Centers for Disease Control (CDC) have set safety and regulatory guidelines which protect the employer from causing damage to property, employees, and customers. These guidelines can be viewed as protecting all parties involved in an organization as the employee is protected from workplace injury or exposure and the customer is protected from injury and exposure while being involved with an organization. The CDC has set......

Words: 755 - Pages: 4

Premium Essay

Gambling: the Refinement of Legal Regulations

...Gambling: The Refinement of Legal Regulations Political Science 1020E - 002 1938 words In the UK alone, 70% of adult citizens willingly engage in at least one type of gambling per year. While gambling is viewed as immoral by some, it is still also a source of entertainment for others. This hobby that can range from playing poker in Las Vegas to purchasing a three dollar scratch ticket, and whether the stakes are high or low, the government is wise for legalizing it. History has shown that when the state bans a common interest, even if it done with the intention of protecting the public from harm, criminal activity will arise in order to meet the demands of the citizens. The government can avoid these illegal activities by allowing the public access to gambling, and with control of gambling institutions governments can also make a significant revenue. This essay will discuss the economic advantage of government-controlled gambling, and the importance of refining current regulations in order to avoid harm towards those who choose to participate in gambling activities. The act of gambling is an act of free will, and liberty of the individual should be just as important to the government as the safety of its citizens. Since all actions have consequences, the government should claim responsibility for creating a public policy that ensures the least possible harm for the actions of its citizens. In the United States and Canada, 1.6 percent of adults are considered to be......

Words: 2140 - Pages: 9

Premium Essay

Legal, Safety, and Regulatory Regulations in Hr

...Legal, Safety, and Regulatory Requirements HCS/341 February 1, 2014   Legal, Safety, and Regulatory Requirements The course syllabus for Human Resources in Health Care by Brown (2010) makes a debatable statement: "Common sense and compassion in the workplace has been replaced by litigation" (Version One). I disagree with this statement. Common sense and compassion are relative to the supplier. Therefore, federal regulatory agencies have ebeen created to establish and enforce legal, safety and regulatory requirements. In an effort to originate these regulations, the federal government has established the U.S. Department of Labor, U.S. Equal Employment Opportunity Commission, the Americans with Disabilities Act of 1990 and the Department of Homeland Security. Legal Regulations Legal regulations about topics such as wage requirements, work hour requirements, and medical or family leave time is enforced by the U.S. Department of Labor. One example of this agency's oversight is the provision of protected break times for breastfeeding mothers. According to "U.S. Department Of Labor" (2014), "The Patient Protection and Affordable Care Act amended section seven of the Fair Labor Standards Act to require employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child’s birth each time such employee has the need to express the milk" (Wage and Hour Division: Break Time for Nursing Mothers).......

Words: 779 - Pages: 4

Premium Essay

Isol 633 Legal Regulations And Compliance

...ISOL 633 Legal Regulations, Compliance and Investigation Course Paper Table of Contents Titles Page no 1. Introduction 3 2. Code of Ethics 4 3. Information Security and Framework 5 4. Privacy of Personal Data 6 1....

Words: 983 - Pages: 4

Premium Essay

Internet Regulation, Legal and Ethical Issues Concerning

...INTERNET REGULATION Legal and Ethical Issues Concerning Internet Regulation Calvin White Park University Outline 1. Intro a. Regulating the Internet: Delicate, difficult, presents challenges 2. Body b. Past i. History of Internet Regulation 1. Early role of regulation a. Mediate connectivity between researchers, government 2. Milestones and events that shaped regulation b. 70s and before - Lab experiments c. 80s - Early commercialization d. 90s - Widespread adoption i. Early malicious activity ii. Educational organizations e. 2000 to present iii. The need to curb crime iv. The need to protect consumers and businesses v. The defense of our nation’s assets 3. Leaders in Internet regulation f. Efforts at home g. Efforts abroad 4. The challenges of regulation ii. Why broad regulation has proven difficult 5. Technology meant for other purposes 6. Grew too quickly c. Present iii. Structure 7. Present-day regulations h. How ongoing Internet regulation works 8. Who controls the Internet? i. Who enforces regulation? 9. How infractions are punished iv.......

Words: 3196 - Pages: 13

Free Essay

Construction Management and Economics

...Construction Management and Economics (May 2004) 22, 347–356 The development of the construction legal system in China LAM YOW THIM and CHEN ZONGGUI School of Civil and Environmental Engineering, Nanyang Technological University, Singapore Received 2 December 2002; accepted 29 May 2003 China has been developing at an amazing speed since it carried out reform and open-door policy in 1978. Construction industry is playing a leading role in the rapid Chinese economic development. At the same time, China has also worked hard to encourage overseas investors to expand their investment in the construction industry. With its development over the years, China has established a legal system for governing construction activities. To participate in such a major market in the world, it is important to understand the legal system governing it and the impact of China’s joining the World Trade Organization. The Chinese construction laws and practice are still very different from the international norm. If foreign participants are to make a success out of doing business in China, they must understand the Chinese way of life. Particularly, they must prepare to adapt to an environment where new rules are created as circumstances and situations change. Keywords: Construction laws, legal system, construction industry, China, foreign investment, foreign designers and contractors, World Trade Organization (WTO) Introduction China has been developing at an amazing speed since it carried......

Words: 6661 - Pages: 27

Free Essay

Gm520

...Week 2 Homework – GM520. 1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? Department of Agriculture Agricultural Marketing Services The proposal interests me because it deals with businesses who voluntary want their plants inspected against USDA guidelines for diaries. This is interesting because I would think each dairy would be required to be inspected and not voluntary. Being that the fee may rise and the inspection is voluntary then most likely those businesses will pass the cost onto consumers. This could potentially affect my clients who have children and need dairy products to meet their babies’ daily needs. I hope to safely assume all dairies would want to be inspected and graded according to USDA guidelines in the event something of bad product being introduced to the public. 2. Describe the proposal/change. The proposal increases the fee for business who wants their dairy plants inspected against USDA inspections and grading services. These fees were last adjusted in 2006. According to the regulation, “despite the adoption of technologies that have improved services, additional changes in operations that enhanced efficiencies, and reduced employee numbers, increases in salaries, technology investments, and general inflation have more than offset savings resulting in the...

Words: 1154 - Pages: 5

Free Essay

The Coordination of Legal Systems in Environmental Protection

...The Coordination of Legal Systems in Environmental Protection Introduction The objective of this paper is to examine the issues involved while protecting the environment and coordinate with the Australian legal system to devise an action plan for civil law. Factors that control the right usage of environment are a legal requirement in many countries. Australia is not an exception to this mainly because of the availability of abundant natural resources present in the country. This calls for biodiversity legislations and laws to avoid abuse of natural resources. Since, environmental protection plays an important role in many fields there is increased control and authority from different players that often leads to disputes. Policy-makers and lawyers have often overlooked the representation of systems used in legitimate regulatory behavior in the context of environmental protection. Environmental regulations are based on certain models that are perceived and created to aide policy-makers. These models help legal professionals and policy-makers to understand technical aspects and adverse impact on the environment for correctly framing laws and in decision making. Role of Environmental Models in Policies and Regulations Environmental models play an increasing role in decision making. They act as a catalyst for policy making and also for devising regulatory strategies. Models are required to be understood for policy makers and lawyers because of their focus in dispute......

Words: 1410 - Pages: 6

Premium Essay

Quiz #1

...Legal aspect of Nursing Nursing practice is ruled by many legal concepts. It is important for nurses to know the legal aspect of Nursing; because nurses are accountable for their professional judgments and actions. Accountability is a crucial concept of professional nursing practice and the Knowledge of laws that legalize and affect nursing practice is needed for two reasons: first to ensure that nurses’ decisions and actionsLegal aspect of Nursing Nursing practice is ruled by many legal concepts. It is important for nurses to know the legal aspect of Nursing; because nurses are accountable for their professional judgments and actions. Accountability is a crucial concept of professional nursing practice and the Knowledge of laws that legalize and affect nursing practice is needed for two reasons: first to ensure that nurses’ decisions and actions are consistent with legal principles and second to protect nurses from legal responsibility. What are the functions of law in nursing? The law serves a number of functions in nursing: it helps structure nursing actions in the care of clients are legal. It helps establish the boundaries of independent nursing action. It assists in maintaining a standard of nursing practice by making nurses accountable under the law. There are three sources of laws that affecting nurses: Federal Regulation, Criminal and Civil law and State law. Federal Regulations have a great impact on nursing practice for example The Health insurance portability......

Words: 580 - Pages: 3

Premium Essay

Social Media

...utilizing the site for advertising. It also concludes this topic by providing the entire details of Twitter social media outlets. Four components of legally astute marketing Appropriate use of legal tools and law This was to be the component of astute Facebook social media marketing which was to manage the risks and to develop the realizable value for the initiation of rules which were offered by the law. This component provided the firms’ overall strategy which varied according to the legal tools of managers in business. This component analyzed that how the law affected the risk ratio for making business of  Facebook social media marketing and also it provided the proper application of legal tools for attaining the legal astute of social media marketing. Ability to exercise informed judgment This was to be the second component of social media marketing which provide the legal rules and outcomes for executing the facts and minor changes dramatically. It was also to serve as a guide for making the exercise of informed judgment in order to implement the decisions and dealings for Facebook social media marketing. This component could make legal matters and formal legal training for benefiting the astute marketing (Smith, N., Wollan, R., 2011). Approach to regulation The approach to regulation was to be third component of social media...

Words: 1273 - Pages: 6

Free Essay

Regulatory Management Paper

...Legal, Safety, and Regulatory Requirements Paper Leah Smith HCS/341 March 21, 2011 Norman Greene Legal, Safety, and Regulatory Requirements Paper The human resources department in every organization is responsible for ensuring that the organization follows all legal, safety, and regulatory requirements when dealing with the employees of the organization as well as with the clientele that the organization serves. Throughout the HR processes a main priority is the examination of the employment laws and the effects of how they are used. Divisions that house the employment laws such as the US Department of Labor (USDOL), the Equal Employment Opportunity Commission (EEOC), Department of Homeland Security (DHS), etc. are important divisions that all HR departments must maintain up-to-date information from to ensure that the processes are staying in line with the regulatory requirements such as the Americans for Disability Act of 1990 (ADA). All of these laws, acts, divisions, regulations, and requirements are what led to litigation between employees, clients served, and the organization. These types of litigations bring to mind whether or not common sense and compassion in the workplace has been reduced by this type of litigation. Effects of Legal, Safety, and Regulatory Requirements on HR Processes Laws, acts, and regulations have been placed for organizations to follow throughout history. These laws, referred to as HR laws are the main reason......

Words: 1149 - Pages: 5

Free Essay

Manager

...turns out to be relatively high. With the expansion of GEM and the growth of regional OTC markets, transaction explodes in volume. Therefore, it has become an important issue for the domestic and abroad securities legislation research and practice how to ensure the OTC market sustainable development and protect the investors’ interest. In recent years, although Chinese scholars had conducted in-depth research on the OTC market's regulatory system and learned a lot from foreign market about OTC market construction, there are still problems to further clarify. On our securities practitioners opinion, we comprehensively use the knowledge ranged from civil law, economics sociology to practical experience, study and analysis the OTC market regulation. We will discuss the problem through six thorough sections. The first part analyzes the fundamentals of OTC market establishment, and we particularly contemplate the OTC legislate characteristics. Firstly, we analyze the characteristics of OTC markets, and compare the concept of OTC market, capital market, property ownership market with over-the counter market, in order to clearly define the OTC market. We believe that the OTC market is independent of the exchange transaction system, and is essential to the stock market. OTC market has various investment portfolios, multiple market...

Words: 1532 - Pages: 7

Premium Essay

Social Media

...topic by providing the entire details of Twitter social media outlets. This was to be the component of astute Twitter social media marketing which was to manage the risks and to develop the realizable value for the initiation of rules which were offended by the law. The component provided the firms’ overall strategy which varied according to the legal tools of managers in business. This component analyzed that how the law affected the risk ratio for making business of Twitter social media marketing and also it provided the proper application of legal tools for attaining the legal astute of social media marketing. The ability to exercise informed judgment was to be the second component of social media marketing which provides the legal rules and outcomes for executing the facts and minor changes dramatically. It was also to serve as a guide for making the exercise of informed judgment in order to implement the decisions and dealings for Twitter social media marketing. This component could make legal matters and formal legal training for benefiting the astute marketing (Smith, N., Wollan, R., 2011). The approach to regulation was to be third component of social media marketing for the execution and development...

Words: 1323 - Pages: 6

Free Essay

Unit 36 P4

...Unit 36, P4 Legal aspects and physical resources As my business is starting up there are several legal statuses that I can have which are; Legal Aspects; * My legal status: Sole trader * Legal liability: Unlimited liability * Trading terms and conditions: Being owner of the business this means that I can do as I wish and go against the terms and conditions which I have set for my business, for example of a term would be the closure of the shop at 9pm A sole trader owned company is a business which is owned just by one person. There are several disadvantages and advantages when being a sole trader. Being a sole trader will mean that a lot of the businesses work will be on one person’s shoulders. This means there will be a lot of pressure and stress on the single person. Having privacy within a company is highly important, being a sole trader means that you have full control of the business and its financial incomes, this means that other companies don’t have access to your information. Also there are fewer legal restrictions so this will allow the business to be more flexible. However, hours are generally longer and working alone may mean that they will need more acquired skills for their business. Also there is no obligation when it comes to sharing profits. I have chosen to be a sole trader because as my business is small I feel like it would cause less complications then if I was to start as a partnership. Partnership A Partnership is where a......

Words: 1340 - Pages: 6