Post by Wischland on Apr 17, 2021 13:47:42 GMT -5
Framework For Proper Financial Reporting Standards
A resolution to enact uniform standards that protect workers, consumers, and the general public.
Category: Regulation
Area of Effect: Legal Reform
Proposed by: Loendersteer
The World Assembly,
RECOGNISING the need for a proper framework for reporting financial statements, especially when it concerns trade and agreements between bilateral or multilateral relationship with other nations and companies who have multiple headquarters and factories on different areas of the world, is essential in establishing strong economies,
AFFIRMING that by laying out the foundation for proper reporting standards, it will reduce the risk of companies conducting business in foreign countries in reporting dishonest claims about their financial situation, thereby discouraging potential investors from investing on a company or that nation as a whole,
ACKNOWLEGDING that the lack of framework for financial matters at the World Assembly level may result in the incapacitation of the World Economy, and may affect a wide array of nations, crippling their citizens of making a substantial living, and may pludge the World Economy to a deep recession.
The General Assembly hereby defines:
1. COUNTRY OF ORIGIN - the county or nation in which the company was created and founded on. For the purposes of this resolution, COUNTRY OF ORIGIN will also refer to a company whose headquarters was moved to a country other than the one where it was founded on.
2. AUDITOR(s) - a person who conducts an audit, or an official inspection of an individual's or organization's accounts.
3. BRANCH - a division of a large business or organization, operating locally or having a particular function.
The World Assembly hereby mandates the following:
1. that nations in the World Assembly create an independent body of auditors inside their territories and borders to supervise statements that are true and not misleading. These independent body of auditors shall consists of:
a. internal auditors - those who shall inspect financial statements that are circulated inside the company.
b. external auditors - those who shall inspect financial statements that are provided to persons outside of the company. These may include the Board of Directors and investors.
c. international auditors - those who review financial statements of companies who have branches on their country, but of which is not their country of origin.
These auditors must acquire a Certification of Application from the OPCORFS before their admission to an independent body of auditors. It is their job to ensure companies follow proper reporting on their respective countries, at the behest of these countries.
These independent body of auditors must submit a report to the OFFICE OF PROPER CONDUCT AND ORGANIZING IN REPORTING FINANCIAL STATEMENTS (OPCORFS) summarizing the companies they auditted at the end of each year. If the company is found to be engaging in improper reporting standars, the auditors must notify the OPCORFS of it and their decision after the fact.
In case of misconduct by one of its members, the independent body of auditors must investigate and decide on their own whether to expel the member or appeal the issue to the OPCORFS.
If the misconduct is allegedly committed by the entire body, then the country where the misconduct occured may request OPCORFS to investigate the allegation and refer decisions to them
2. that companies who have branches on countries other than their country of origin must submit to these independent auditors and abide by laws and resolution created on those countries.
3. that it creates the OFFICE OF PROPER CONDUCT AND ORGANIZING IN REPORTING FINANCIAL STATEMENTS (OPCORFS), to oversee the independent bodies of auditors in each countries.
The OPCORFS is responsible for:
a. ensuring that the bodies of auditors on each country are truly independent, does not hide any special interest resulting in favoring one company over the other, and to supervise these auditors in executing their duties.
b. ensuring that a company, organization, or even a country, has the opportunity to appeal any decisions made by their independent body of auditors, and to investigate any irregularities in the decision making of these auditors.
b1. Irregularities may include, but are not limited to:
- Favoring one company over the other without proper explanation
on their reports.
- Accusation of bribery or corruption on one or more auditors.
- Failing to recognize a company's repeated errors in reporting
financial statements
- Failing to follow the standards each county has enacted in
response to this resolution
- Failing to follow the standards each country has already enacted
prior to this resolution or any standards enacted independent of
this resolution
c. Review yearly reports from the independent bodies of auditors across the World Assembly nations.
d. Establish an investigation committee in the case that a complaint is received against an independent body of auditors.
e. Releasing information to potential investors with the permission of the company in interest.
This is the discussion thread. To cast your vote, go HERE