The first impact is skills development. In order to remain ethical and avoid instances of statutory illegality such as tax evasions, CGA's must have the knowledge, skills and ability to show a taxpayer where they can save on taxes, and provide advice about conducting financial affairs in a way which will limit tax liability. In the aforementioned case, if Mack's company had a proficient accountant, they may have been able to come up with other ways to reduce
Part 2 • Question 1 The principal issue in cases involving alleged negligence is usually: • Question 2 "Absence of reasonable care that can be expected of a person in a set of circumstances" defines: • Question 3 While the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following? • Question 4 The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the: • Question 5 In the performance of an audit, a CPA: • Question 6 The laws that have been developed through court decisions are called: • Question 7 The auditor's best defense when material misstatements are not uncovered is to have conducted the audit: • Question 8 The responsibility for the preparation of the financial statements and the accompanying footnotes belongs
financial technical bulletins. : Question 2. Question : (TCO 2) Enhancing qualitative characteristics of accounting information include each of the following, except timeliness. materiality. comparability.
(2012). Statement of Financial Accounting Standards No. 154. Accounting Changes and Error Corrections. Retrieved from http://www.fasb.org/cs/BlobServer?blobkey=id&blobwhere=1175820927509&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobs Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2007).
Discuss how Hincapie should report the proposed preferred stock issue. * General Disclosure- either on the face of the financial statement by means of parenthetical disclosure, or in the Notes of the financial statements "o 505-10-50-2: If both financial position and results of operations are presented, disclosure of changes in the separate accounts comprising shareholders’ equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative. Disclosure of such changes may take the form of separate statements or may be made in the basic financial statements or notes thereto " "o 505-10-50-3: An entity shall explain, in summary form within its financial statements, the pertinent rights and privileges of the various securities outstanding. Examples of information that shall be disclosed
The second one is errors from weak accounting system. It most likely comes from the not well designed accounting system, poor management, weak training, and lacking of quality management and risk management. b. Audits can help to reduce information risk in three ways: Auditors are independent and professional the third party who can reduce and monitor the financial statements errors from management. Auditors are accounting experts who have sufficient professional accounting know-how to handle with complicated accounting issues for business activities.
This is necessary in order to assess the risk of misstatement of the financial statements, whether due to a mistake or fraud. The evidence obtained through the audit needs to be sufficient and complete (Boynton & Johnson, 2006). The standards of reporting, the auditor is required to imply that the financial statements were provided in accordance with the Generally Accepted Accounting Principles (GAAP). Otherwise, the report needs to be recognized the reasons in which the principles have not been observed. The audit report needs to contain an opinion concerning the financial
It is a review of management and how operating procedures work. How effective and efficient the procedures are for the company. Although operational audits reveal possible problems in the financials statements, a compliance audit and fraud audit will help Whitfields internal
The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles. In essence, materiality should function as a cut-off threshold to determine the nature of the audit testing. Auditors should not reveal its materiality level to clients because clients might take advantage of it to deceive the auditors and make its financial statement better. When the Deloitte auditors are suspicious of certain accounts, they not only can’t reveal it but also make more substantive investigation into these accounts. Question 4: Existence: the
The existence of inventory at multiple locations. C. The effectiveness of controls pertaining to maintenance of perpetual records. D. The care exercised by client employees in taking the inventory. 5) When statistical sampling methods are used by the client in determining inventories, professional standards require that the auditor ascertain the following EXCEPT that the: A. sampling plan has statistical validity. B. appropriate tests of transactions have been applied.