Under present technical standards auditors would be required to disclose a company policy similar to Nay`s mail rule if they discovered it during the audit. Per the PCAOB Auditing Standard No.2,” A company subject to the reporting requirements of the Securities Exchange Act of 1934 is required to include in its annual report a report of management on the company's internal control over financial reporting. The report of management is required to contain management's assessment of the effectiveness of the company's internal control over financial reporting as of the end of the company's most recent fiscal year, including a statement as to whether the company's internal control over financial reporting is effective. The auditor that audits the company's financial statements included in the annual report is required to attest to and report on management's assessment. The company is required to file the auditor's attestation report as part of the annual report”.
Falk asks you, as an accounting major, to explain (a) the bases for comparison in analyzing Ventura financial statements and (b) the limitations, if any, in financial statement analysis. Instructions Write a memo to R.J. Falk that explains the basis for comparison and the factors affecting quality of earnings.” BYP 13- 7: Assigned to Shelley. • Ch. 23: Exercises 23.10 & 23.12 of Managerial Accounting: The Basis for Business Decisions Exercise 23.10 – Assigned to Elizabeth 70,000 Units 80,000 Units 90,000 Units Sales $1,400,000 $1,600,000 $1,800,000 Cost of goods sold 840,000 960,000 1,080,000 Gross profit on sales $ 560,000 $ 640,000 $ 720,000 Operating expenses ($90,000 fixed) 370,000 410,000 450,000 Operating income $ 190,000 $ 230,000 $ 270,000 Income taxes (30% of operating income) 57,000 69,000 81,000 Net Income $ 133,000 $ 161,000 $ 189,000 Exercise 23.12 a. Assigned to Andy b.
Data sourced ... Historical financial statement Historical financial statement BDO Seidman BDO Seidman 2). Documentation with its customer regarding its orders 3). Its credit and bad debt write-off policy 3. Non-financial factors the auditor should consider: 1).
Financial accounting information is used for a.|investment decisions.| b.|regulatory measures.| c.|stewardship evaluation.| d.|all of these.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 6. Which of the following is NOT part of the financial accounting information system? a.|filing reports with the SEC| b.|reporting a large contingent liability to current and potential shareholders| c.|determining the future cashflows of a proposed flexible manufacturing system| d.|preparing GAAP financial statements| ANS: C PTS: 1 DIF: Meduim OBJ: 1-1 NAT: AACSB Reflective 7. Which of the following does NOT describe cost management system? a.|evaluation of segments or products within the firm| b.|emphasis on the future| c.|externally focused| d.|focus on effective use of
Business Research Report THE FINDINGS OF A NEW CPA THAT HAS TO REPORT THE STANDARDS OF THE FINANCIAL ACCOUNTING STANDARDS BOARD Western Governors University RWT1 Darin Dunham 000242679 February 12, 2013 Tracia Roberts Table of Contents Introduction………………………………………………………………………………………3 Research Findings………………………………………………………………………………..5 Finding Number 1 (History and Standards of the FASB)…………………………….5 General Analysis 1 (History and Standards of the FASB)……………………………9 Finding Number 2 (Compliance with Internal Management and FASB Standards)……………………………………………………………………………………….10 General Analysis 2 (Compliance with Internal Management and FASB Standards)……………………………………………………………………………………….14 Finding Number 3 (Avoiding Financial Board Scandals)……………………………16 General Analysis 3 (Avoiding Financial Board Scandals)…………………………..18 Recommendation 1 (History and Standards of the FASB)…………………………..19 Recommendation 2 (Compliance with Internal Management and FASB Standards)……………………………………………………………………………………….20 Recommendation 3 (Avoiding Financial Board Scandals)…………………………..22 Executive Summary…………………………………………………………………………….24 Conclusions……………………………………………………………………………………..25 References Introduction This business research report addresses the topic of a CPA of a newly formed, publicly held accounting firm. The CPA has to report the standards of the Financial Accounting Standards Board. The CPA also has to provide a report to their management on the impact that the FASB will have on the company. A newly formed accounting firm must comply with a strict code of ethics and represent the best interests of their clients and maintain the confidence of the public. Accounting firms have a list of responsibilities and duties which include tax advising, preparation, auditing and consulting.
Checkpoint: Debits and Credits Terra Ballenger XACC 280: Financial Accounting Concepts and Principles August 16, 2012 Paul Gomez Associate Level Material Appendix B Debits and Credits Consider the information presented in PhxKlips™ Debits and Credits. Pay particular attention to the meaning of debits and credits and their effects on accounts. Then follow the instructions below. 1. Write a response to the following questions: In what two ways is the word debit defined in Debits and Credits?
Hammersmith Tools Limited The underlying accounting policies have been applied in the preparation of the financial statements of Hammersmith Tools Ltd. Statement of Accounting Policies For the Year ending 31 December 2011 1. Purpose The purpose of the following statement of Accounting policies is to act as a guide to non-accounting employees on basic accounting procedures that are employed in the company while determining the overall profits of the company. 2. Basis of Preparation The financial statements are prepared in accordance with the applicable law and under the convention of Historical cost.
The general accepted accounting principles regulate and standardize preparation of financial reports which are distributed to the public. Companies are required to comply with GAAP when presenting external financial reports (Kieso, D. E., Weygandt, J. J., & Warfield, T. D, 2007). An accrual basis accounting system is different from just tracking incoming and
(B) Foreign Firms: PricewaterhouseCoopers (India); Deloitte & Touche LLP (Bermuda), Ernst & Young (Taiwan, R.O.C), Jimmy C. H. Cheung & Co. (Hong Kong SAR), KPMG (New Zealand) (C) Smaller U.S. firms: Crowe Horwath LLP; Moore & Associates, Chartered;Moss Adams LLP; Plante & Moran PLLC. Find and read the latest (most recent) PCAOB inspections reprt at www.PCAOB.org for each of your selected firms. When reading each report, take note of what the PCAOB is charged to do with respect to inspections of registered accounting firms, the PCAOB’s inspection approach, and also the inspection findings for your selected audit firms. Also, note the tone of the
They typically use this method because it requires fewer journal entries for closing an accounting period and creating financial statements. I feel this method only gives the owner or company a view on the cash coming in and out but does not give the company a long term view on the overhead cost and revenue for services in order to show the company where improvements can be made or where costs