as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities and fraud being investigated and disclosed brought into question the effectiveness of financial statement audits. In addition, the criminal conviction of Arthur Andersen, LLP, one of the then Big 5 accounting firms, on charges
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was reinstated to CEO after Skilling’s resignation due to “purely personal” reasons. Andersen. LLP was originally founded as Andersen, Delaney & Co. in 1913 by Arthur Andersen, an accounting professor at Northwestern University in Chicago. By Andersen taking tough stands against clients’ aggressive accounting treatments, Andersen quickly gained a national reputation as a reliable keeper of the public’s trust. Enron paid Andersen $25 million for audit work and $27 million for consulting services
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How did the corporate culture of Enron contribute to its bankruptcy? The corporate Culture at Enron could have contributed to its bankruptcy in many ways. Its corporate culture supported unethical behavior without question for as long as the behavior resulted in monetary gain for the company. It was describe as having a culture of arrogance that led people to believe that they could handle increasingly greater risk without encountering any danger. Its culture did little to promote the values of
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Accounting Standards Board ACC/541 Accounting Standards Board Currently the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are working on a joint venture known as the Norwalk Agreement that will most likely affect current and future individuals within the accounting field. Discussed within is the relationship between the IASB and FASB, the IASB equivalents of the original FASB pronouncements, and how a Master’s of Science in Accountancy
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3 711 Chapter Tax Accounting TRUE-FALSE QUESTIONSCHAPTER 13 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. A partnership may adopt any tax year without IRS permission. A corporation ling its rst return must annualize its income if the tax period is less than 12 months. A taxable year may be as short as one day and may exceed 366 days. Under no circumstances may a corporation change its scal year without IRS permission. A taxpayer engaged in two or more separate and distinct businesses
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most expensive to organize? A) Limited partnership. B) Corporations. C) Sole proprietorships. D) Partnerships. 2) Which of the following legal forms of organization's income is NOT taxed under individual income tax rate? A) Partnerships. B) Sole proprietorships. C) Corporation. D) Limited partnership. 3) Under which of the following legal forms of organization, is ownership readily transferable? A) Partnerships. B) Sole proprietorships. C) Limited partnership. D) Close corporation. 4) The true owner(s)
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There are different pros and cons when it comes to a partnership. One advantage of general partnerships is the flexibility they offer. In partnership agreements, the partners are free to set their responsibilities and benefits as they see fit or as the needs of the business dictate. The structure of the organization and the distribution of profits and losses are much more flexible in a general partnership than they are in a corporation. Because of this, an individual partner can be rewarded with
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Anacomp, a limited partnership: RTS Associates - BANKSERV 10000, CEFT, CDA and CIBS, thirteen major banks including the National Bank of North America in New York, the Shawmut National Bank in Boston, Provident National Bank in Philadelphia and the First national Bank in Kansas City as advisory banks. 2. i. Describe the contractual arrangements between the economic entities involved in the CIS development. Anacomp would develop the CIS system on behalf of the partnership. In return, the four
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CONTENT AND SKILL SPECIFICATIONS FOR THE UNIFORM CPA EXAMINATION Approved by the Board of Examiners American Institute of Certified Public Accountants May 15, 2009 Effective Date: January 1, 2011 Board of Examiners Examinations Team American Institute of Certified Public Accountants Parkway Corporate Center 1230 Parkway Avenue, Suite 311 Ewing, NJ 08628-3018 COPYRIGHT © 2009 BY AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC. CONTENT SPECIFICATION OUTLINES (CSOs) The outline
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entry accounting concept. Double-entry accounting is to minimise the mistakes used in accounting, it is similar to trace where the mistakes happen. I guess this is why accountants use it. Each and every accounting transaction has its effect on the accounting equating. Every transaction modifies the apparatuses present in the accounting equation which is Equity = Assets – Liabilities, is satisfied after every alteration. In Chapter 1, I noticed its emphases on the five elements of accounting, which
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