For this assignment, use the CAFR your team selected in Week Two. Discussion Questions DQ 1 What is a performance audit? In what significant ways do performance audits differ from financial audits? DQ 2 How do audits of governmental agencies differ from those of not-for-profit entities? How are these audits different from those of organizations that operate for profit?
Chapter 2 (5 pts) 2. Explain the two "safe harbors" available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax. Underpayment penalties occur when a taxpayer fails to prepay a safe harbor amount. The federal tax law does however; provide “safe harbors” to avoid these penalties. The first safe harbor depends on the current year’s total tax amount.
14-24 What is the purpose of the dividends-received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? The purpose of the dividends-received deduction is to reduce the effect of multiple taxation that takes place when corporations are receiving dividend income. Only dividends received from domestic corporations subject to the corporate income tax are eligible for the dividends-received deduction.
Refer to the weekly readings and content outlines for each week as study references for the Final Examination. Week One: Overview of the Tax System and Sources of Tax Law Objective: Prepare in proper form a personal balance sheet, cash flow statement, and budget. 1. A cash flow statement reports a person's or a family's a. net worth b. current income and payments c. plan for spending d. value of investments Objective: Determine the components of taxable income. 2.
Consult the IRS Circular E for federal payroll tax regulations and your state taxation agency (see Resources) for state payroll tax regulations. Withhold federal income tax based on the Circular E’s withholding tax tables and the employee’s W-4 form. Withhold Social Security tax at 6.2 percent of gross income, up to $106,800 for the year. Withhold Medicare tax at 1.45 percent. Consult your state withholding tax tables (see Resources) and the employee’s state income tax form to determine state income tax withholding.
For auditing year-end cash will utilized objectives in order to (1) find the internal controls related to each audit objective; (2) designing tests of controls related to the support of a reduced control risk, and (3) substantive tests of transactions design that tests each objective for monetary misstatements. In the audit the tests of controls for the cash cycle will involve observing if the Apollo Shoes accountant reconciled the bank account; observing cash receipts; examining files; verifying monthly statements; examining evidence related to internal verification, and observe cash that has not been recorded during a specific period. Substantive transaction tests involves reviewing cash receipts; duplicate deposit slips; preparing proof of cash receipts; using audit software to trace sales journal totals to the general ledger; and comparing deposit dates from the bank statements (Arens, Elder & Beasley, 2012). And because cash balances is affected by the other cycles except inventory and warehousing cycle the controls over cash receipts in the audit of cash transaction are thoroughly audited. The year-end bank reconciliations are usually extensive audit and using analytical procedures are test for reasonableness of cash balances.
CPA Report University of Phoenix ACC/545: Financial Reporting CPA Report When properly documenting financial findings, a CPA report can prove very useful. In this paper I will discuss the methodology used to determine deferred taxes, the procedures for reporting accounting changes and error corrections, and the rationale behind establishing the subsidiary as a corporation. I will also cover the professional responsibilities of a CPA and the difference between a review and an audit. The methodology used to determine deferred taxes Two methods to determine deferred taxes exist, the deferral method and the liability method. The objective of the deferral method is to match tax expense with pretax book income.
Jane Smith tax issues: e. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes? f. Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John's case? g. Does Jane have a business or hobby? Why is this distinction important? h. Would Jane (and John) realize better tax benefits if she had a separate business for her jewelry-making activities?
If Dawn, Lind, and Mike were to select this type of entity they would each pay another tax on the corporation’s distribution of corporate earnings and profits when dispersed as dividends. However, contrary to C corporations, an S corporation is not a separate taxable entity for most federal and state income tax purposes. Dawn, Lind, and Mike will need to determine the best entity type that will
IF YOU, THE STUDENT, FILED TAXES FOR 2011-Check the box that applies to you: I, the student, have used the IRS Data Retrieval Tool in FAFSA on the Web to transfer my (and, if married, my spouse’s) 2011 IRS income information into my FAFSA, either on the initial FAFSA or when making a correction to the FAFSA. *FKCC will use the transferred information for verification. I, the student, have not yet used the IRS Data Retrieval Tool, but I will use the tool to transfer my (and, if married, my spouse’s) 2011 IRS income information into my FAFSA once I have filed my 2011 IRS tax return. *FKCC cannot complete the verification process until the IRS information has been transferred into the FAFSA. I, the student, am unable or choose not to use the IRS Data Retrieval Tool in FAFSA on the Web, and I will submit to the school 2011 IRS tax return transcript(s)—not photocopies of the income tax return.