...Memorandum To: Accountants From: junior accountant Date: October 22, 2012 Subject: SAS 115-Statement on Accounting Standards SAS 115 was issued by the Auditing Standards Board to provide guidance to auditors on what should be communicated to management and those in charge of governance within an organization. The SAS 115 requires the auditor to make communications, in writing, to management regarding imperative deficiencies and material weakness in internal controls that are noted in audit reports. It clarifies standards and provides guidance on communicating matters related to an entity’s internal control over financial reporting identified in an audit of financial statements. The new SAS No. 115 is going to affect this department in three different ways: 1. It defines three categories of control deficiencies that may be identified during the external audit of the financial statements: control deficiencies, significant deficiencies and material weakness. 2. It provides guidance on evaluating the severity of the deficiencies identified. 3. It requires the auditor to communicate in writing to managements and those charged with governance any significant deficiencies or material weaknesses that were identified. SAS No. 115 includes much of what was outlined in SAS No. 112 as it provides guidance to enhance the auditor's ability to evaluate deficiencies in internal control identified during an audit, and then communicate those deficiencies that the auditor believes...
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...Memorandum To: Accounting department From: Juanita Mendoza – Junior Accountant Date: September 03, 2012 Subject: SAS 115 - Statement on Accounting Standards CC: Learning Team B SAS No. 115 was issued by the Auditing Standards Board to provide guidance to auditors with respect to what should be communicated to management and those charged with governance in an organization. SAS No. 115 requires the auditor make communications, in writing, to management regarding significant deficiencies and material weaknesses in internal controls that you note in your audits SAS No. 115 supersedes SAS No. 112 because it clarifies standards and provides guidance on communicating matters related to an entity’s internal control over financial reporting (internal control) identified in an audit of financial statements. The new SAS No. 115 is going to affect us in three different ways: 1. It defines three categories of control deficiencies that may be identified during the external audit of the financial statements: control deficiencies, significant deficiencies and material weakness. 2. It provides guidance on evaluating the severity of the deficiencies identified 3. It requires the auditor to communicate in writing to managements and those charged with governance any significant deficiencies or material weaknesses that were identified SAS No. 115 includes much of what was outlined in SAS No. 112 as it provides guidance to enhance the auditor's ability to evaluate deficiencies...
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...on our Learning Team. The first communication in our report was the Accounting Peer Memo. The memo did convey the intended message that JJJ was not a good investment for the company. The message could of contained more language that accountants use, as this is a communication from an accountant to other accountants. This type of communication was the most appropriate because any other form would not have as effective, for example an email would not have appropriate enough to convey the message professionally enough. The one thing that I would change to improve this communication would be to add an indentation at the beginning of every paragraph to make the look more professionally written. There were no ethical implications in this memo, because it was written by the head of the accounting department to the accountants in the department all were privy to the information. The memo shared right amount of information because it is the Accounting that did the audit and therefore they have access to all information concerning this deal. As the author of the second memo it is hard not to be biased. After reading the memo along the others I now see the flaws in my work. The memo appeared to be put together in a way to convey the intended...
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...ideas in written communication. Requirement: Assume the role of a staff accountant who has been asked to research the appropriate revenue recognition for a client, Velocity Cellular, for its new product, the Power Starterpack. You have been provided with a memo from the client describing the new product and you are to prepare your own memo to your supervisor that that discusses in your own words the existence of relevant revenue recognition alternatives given the facts of the case. You must also recommend and justify what you believe to be the most appropriate accounting treatment (which would also state why other alternative(s) would not be appropriate). Be sure to reference the specific official accounting pronouncements from the sources mentioned below. While no specific citation format is required, you should follow a generally accepted format of some kind. Resources: You can search for relevant applicable professional pronouncements or other pronouncements that you find suitable for the case using the internet as well as the Accounting Research Manager (available electronically at the library). You should focus your searches using the following sources: • FASB Codification (Topic 605) • Emerging Issues Task Force, EITF Documents • SEC Staff Accounting Bulletins (Topic 13) Format: The paper should be no more than 3 pages long, typewritten, double-spaced using word-processing software. Your memo should very briefly describe the “problem” (e.g., no more than 3 sentences)...
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...Term Paper Kaplan University March 20, 2015 Regulations: Accountants Responsibilities Accountants have many responsibilities in different areas. They have responsibilities to clients, to thirds parties, and to the government. They have a responsibility to know the regulations, rules and laws that have been put in place for accountants. Lastly accountants have a responsibility to perform their obligations and duties by the code of conduct and to the code of ethics. We will start off with the client. The client by definition is the person who pays the professional or organization for services; the person who engages the professional for their advice or services they render. (Legal Dictionary) For these services the client must cooperate with the accountant in every aspect the accountant deems fit, within the scope of their profession. The accountants responsibilities to the client include to act with integrity, objectively, due care, competence, fully disclose any conflict of interest, maintain client confidentiality, disclose fees to client, and serve the public interest when providing financial services, (AICPA code of conduct) Accountants can also have fiduciary duties to a client if the accountant gives advice to a client involving taxes, assessing management or business consulting. Fiduciary is a legal duty to act solely in the best interest of the client. The case below involves an Atlanta-based accountant breaching his fiduciary duty involving client confidentiality...
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...Memo To: Ms. Boyce, Chief Executive Officer From: Student, Personnel Management Consultant Subject: Karen Carlin Case Study: Issue Analysis and Proposed Solutions Date: 21 October 2010 INTRODUCTION The purpose of this memo is to analyze and propose solutions for the issues Karen Carlin faces as she takes on the supervisor role for the schedule typist department of Hepplewhite & Boyce. The three issues to be analyzed are (1) lack of productivity, (2) insubordination and abuse of company resources, and (3) staff mismanagement. First, the problems will be defined and probable causes discussed. Then, recommendations will be made to resolve these issues. DEFINITION OF PROBLEMS AND PROBABLE CAUSES The problems identified in this memo are ones Hepplewhite & Boyce can easily resolve with a few simple actions. Doing so will not only be good for the company but will be good for the employees as well. The end goals should be as follows: (1)Increased productivity within the schedule typist department. (2)An end to the insubordination and abuse of company resources. (3)Improved management of the schedule typist staff. The issues within the department will be explained in further detail next. Lack of productivity The first issue within the schedule typist department of Hepplewhite & Boyce is a lack of productivity on the part of two of the employees, Pat and Pauline. In order to do the least amount of work possible, Pat and Pauline are purposely not updating...
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...Unit 1 – Introduction to Managerial Accounting Genean Benders American InterContinental University Memo An internal managerial accounting system consists of information that management uses to make decisions about the operations of the business. As per the request of the CEO, I am writing a memo to provide information of the characteristics of managerial accounting and why it is necessary for another managing accountant within our company. The Seven Characteristics of Managerial Accounting There are seven characteristics of an managerial accounting system which is comprised of users and decision makers, purpose of information, flexibility of practice, timeliness of information, time dimension, the focus of information and the nature of information (Wild & Shaw, 2012). There is often confusion between financial and managerial accounting, therefore, the following will give detail of the explanation of the seven characteristics of managerial accounting versus financial accounting. This information should also aid with the understanding of why another managing accountant is needed. Users and decision makers. In managerial accounting, this characteristic refers to the internal management, unlike financial accounting that involves external users such as investors and creditors (Wild & Shaw, 2012). Purpose of Information. Management uses informational reports of the company’s financial activities to make important decisions about the ongoing operations of the...
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...Career Comparison for Accountants and Financial Analysts Prepared for Sara Ray Prepared by Career Consultant June 16, 2013 LETTER OF TRANSMITTAL Sara Ray 123 Brookside Dr. Holbrook, NJ 75486-1256 June 21, 2013 Dear Sara, Here is the report you requested on June 1st for a comparison between of a career as an accountant and a financial analyst. Based off our conversation, we took your interests and previous work experience into consideration as we compared specific criteria between these two careers. While working for your previous employer as a junior accountant, you show your ability for detail and organization. An accountant must possess these skills as well as the ability to work independently. I also gathered from our conversation that you are not one to handle a tremendous amount of pressure well. As a financial analyst, this is a skill that is required. You could be faced with many deadlines that could be very stressful. Your education course of study was also included to compare to the education requirements of each career and even though there are many similarities between the two, there are many differences. For example, both careers require good written and oral comprehension but an accountant needs to have excellent mathematic skills and be able to choose the right formula to solve a problem. This skill is not as important as a financial analyst as is the ability to develop solutions to complex problems that need to be solved....
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...CPA Report ACC/545 University of Phoenix Internal Memo To: Management From: CPA Re: Further Information regarding Request Before any information can be given to outside CPA’s, the professional responsibilities of a CPA must be outlined and understood as well as what the differences between a review and an audit are. With the examination of a subsidiary that has been established as a corporation there are certain questions that arise such as: What is the methodology used in determining deferred taxes, What it t he procedures for reporting accounting changes and error corrections, and What is the rationale behind establishing the subsidiary as a corporation. The draft below outlines my response to the questions that have been provided. CPA Professional Responsibility As an accountant I am expected to maintain a high level of ethical conduct that must go above and beyond society’s law. The motivation behind such a high level of ethical conduct lies in the need for a significant level of public confidence in the value of the services that are provided by the accounting profession, in spite of the person who is behind providing the services. It is my responsibility as a CPA to conduct myself in a manner that has been set forth by the AICPA’s Professional Code of Conduct. This code of conduct outline’s required behaviors in relation to accounting responsibilities, the Public Interest, Integrity, Objectivity and Independence, Due Care, Scope, and Nature of Services (AICPA...
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...ACCOUNTING-CLIENT PRIVILEGE 7 CONCLUSION 9 REFERENCES 11 INTRODUCTION Accountants have responsibilities to act in the interest of three different parties. 1. Their clients 2. Third parties 3. The government In this paper, I will outline the duties accountants owe to each party, examples of how accountants breach duties to each party, and additional obligations accountants have to each and all of the three parties. LIABILITY TO CLIENTS Anyone from Fortune 500 corporations to low-income individuals can become accounting clients. A person or entity need only to enlist the professional services of an accountant via a contract to become a client. The contract may require the accountant to perform an audit, complete federal and/or state tax returns, give a consultation regarding business formation and financial planning, or a wide host of other accounting functions. Beatty and Samuelson explain how an accountant must execute their contracts with their clients with, “a degree of skill and competence that an ordinarily prudent accountant would under the circumstances (2010).” We may consider this concept the idea of due professional care. Beatty and Samuelson also write that because accountants hold a position of professionalism, their clients entrust sensitive and sometimes confidential information to them. As such, accountants have a duty not to violate said trust. Accountants must not use a client’s information for anyone’s gain other than the client’s...
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...+ - ACC 556 – Forensic Accounting Week Four Team C Reflections Week five material focused on the impact accounting principles have on detecting fraud as well as the financial statement fraud schemes that have been committed in recent years. Helen found course materials and discussion on financial statement fraud gave me a pause. I was aware of the fact that it is possible to manipulate financial results and make operations appear successful to lenders and investors, while quite the opposite may just as well be true, but I did not realize how wide spread is the problem (746 cases being investigated by FBI as we speak which means there are a lot more out there yet to be uncovered or will never be uncovered or prosecuted). Stories of companies overstating revenues by millions and billions of dollars seem to be common nowadays. I would think that if not for SEC oversight, even more companies would commit financial statement fraud. If I were an investor or a lender I would certainly want to study financials and accompanying notes and disclosures to financial statements of the company I am considering to invest in, I would compare their ratios between fiscal years (especially changes in days in accounts payable and receivables, changes in inventory versus sales, changes in reserves for doubtful accounts and obsolete inventory), I would also compare their performance with other companies in their field. Any sudden growth or performance that meets analyst’s forecasts is now would...
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...Running head: Forensic accountant 1 Forensic Accountant Tanya Pace Dr. Gina Zaffino Bus 508, Contemporary Business 11/16/2012 Running head: Forensic Accountant 2 Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. Although forensic accounting is not a new field, it has become more talked about since cases like Enron came to light. For someone interested in the Forensic Accountant profession they should know that this field can be time consuming, but very rewarding. People who work in this career investigate white collar crimes such as company fraud, fraudulent financial record reporting, and illegal investment schemes. In a recent study by the Federal Bureau of Investigation shows that white collar crimes have cost the United States and estimated 300 billion dollars (DiGabriele 2008). I think five of the skills that a forensic account would need are communication skills, detail oriented, professional and ethical behavior, sound judgment and discretion. Communication skills are vital in any profession. It allows you to convey information for others to receive. The problem with communication is that it can be interpreted differently by other intended parties. As a forensic accountant, communication skills, verbal and non verbal, are important...
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...(SOX), a new era of stakeholder expectations was crystallized for the business world and particularly for the professional accountants that serve in it. The drift away from the professional accountant’s role as a fiduciary to that of a businessperson was called into question and reversed. The principles that the new expectations spawned and renewed resulted in changes in how the professional accountants are to behave, what services are to be offered, and what performance standards are to be met. These standards have been embedded in a new governance structure and in guidance mechanisms, which have domestic and international components. The influence of the International Accounting Standards Board (IASB) and the International Federation of Accountants (IFAC) will be as important as that of SOX in the long run. This chapter examines each of these developments and provides insights into important areas of current and future practice. Building upon the understanding of the new stakeholder accountability framework facing clients and employers developed in earlier chapters, this chapter explores public expectations for the role of the professional accountant and the principles that should be observed in discharging that role. This leads to consideration of the implications for services to be offered, and of the key “value added” or competitive edge that accountants should focus their attention on to maintain their reputation and vitality. Sources of ethical governance and guidance are...
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...Using Teams in Production and Operations Management: Forensic Accountants: Fraud Busters. By: For: Class: Bus 508: Contemporary Business Date: 13 November 2012 Abstract: A case study for the Strayer University, Woodbridge, VA, Business 508 class, this paper provides for a brief review of 1) The skills that a forensic accountant requires; 2) The role of the forensic accountant in the courtroom; 3) The legal responsibilities of the forensic accountant; and lastly, 4) The role of the forensic accountant in a couple of major accounting fraud scandals. The world of Accounting has seen several major scandals since the early 1990s. These include major accounting failures such as Enron, WorldCom, Adelphia, Tyco, Phar-Mor, Cendant, Computer Associates, AOL, Freddie Mac, ImClone, Qwest Communications, Royal Ahold, Health South Corporation, AIG, Lehman Brothers, and most recently the Olympus Corporation. Some of these have resulted in the collapse and dissolution of the company – Enron, Adelphia; others have resulted in a major restructuring of the company – AOL, AIG, Freddie Mac. Whatever the result, they have all been caused by accounting fraud – either “cooking the books” to hide major losses or to hide the theft of funds. It has also resulted in the failure and absorption of the one of the Big Five Accounting firms – Arthur Anderson. Besides the whistle blower who brought most of these to public view and the lawyers who have been involved their dismantling...
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...CPA Program The practical experience guide and logbook If you require further information about the practical experience requirement, or would like to notify us of a change, please contact CPA Australia: practicalexperience@cpaaustralia.com.au or contact your local office – details can be found on the inside back page of this guide. Disclaimer The material used in this booklet has been designed and prepared for CPA Australia’s practical experience requirement. It provides tailored guidance for mentors who are registered in CPA Australia’s practical experience requirement. The booklet and contents should not be used for any other purpose. CPA Australia, the publisher and the author of this booklet take no responsibility for any loss incurred by any person who relies on guidance offered in this booklet. Legal notice Copyright CPA Australia Ltd (ABN 64 008 392 452) (“CPA Australia”), 2010. All rights reserved. Save and except for third party content, all content in these materials is owned by or licensed to CPA Australia. All trade marks, service marks and trade names are proprietory to CPA Australia. For permission to reproduce any material, a request in writing is to be made to the Legal Business Unit, CPA Australia Ltd, 385 Bourke Street, Melbourne, Victoria 3000. CPA Australia has used reasonable care and skill in compiling the content of this material. However, CPA Australia and the editors make no warranty as to the accuracy or completeness of any information in these...
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