s e c TIo n client acceptance C a s es inC lu de d in t his se Ction 1 3 1.1 Ocean Manufacturing, Inc. . . . . . . . . . . . . . . . . . . . . . . The New Client Acceptance Decision InsTrucTor resource Manual — Do noT copy or reDIsTrIbuTe InsTrucTor resource Manual — Do noT copy or reDIsTrIbuTe ocean Manufacturing, Inc. The new client acceptance Decision ins tr uC t ional o b je C t ive s [1] To c a s e 1.1 Mark S. Beasley · Frank A. Buckless · Steven M. Glover
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1. This is an example of an RFID system with a very limited range (less than 8 inches): A) NFC system B) LAN system C) MICR system D) WAN system Table for Individual Question Feedback | Points Earned: | 1.0/1.0 | | 2. A POS device is usually attached to a: A) Cash register B) Keyboard C) Bank check D) Printer E) Computer mouse Table for Individual Question Feedback | Points Earned: | 1.0/1.0 | | 3. The reason why processor speeds are not important to AISs is because:
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wants to be able to record this sale for the year ending 2010. This would violate the revenue recognition principle according to GAAP guidelines and would be looked at as an earnings management tactic, which is viewed as an unethical practice by the AICPA and GAAP. The CFO approaches his accounting department with the expectation that they come up with a solution to this problem. The accounting department is well aware of the rules and guidelines in place when it comes to revenue recognition, but
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Summary Nick O’Brian is a recent college graduate. He began working in the accounting department at his aunt’s software company, O’Brian Software. Nick is going over the financial statements when he recognizes some questionable revenue recognition issues. Nick proceeds to address his concerns with the chief financial officer of the company, Lee Marchetti. Lee explains to Nick how revenue recognition is broken down and that a lot of information and judgment is involved. It is also pointed out that
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To: Manager From: Hunter, CPA Re: Deferred Taxes, Accounting Errors and Changes, Subsidiary As of May 14, 2012, this memorandum will provide thorough explanations the following questions: 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. We will also discuss the professional responsibilities of a CPA, and the difference between a review and an audit.
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Chapter 1 Internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It help an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management control, and government processes. Objective- what an organization wants to achieve. Strategy- how management plans to achieve to organization’s objective. 4 types of objectives -Strategic
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Case 2-8 Juggyfroot “I’m sorry, Lucy. That’s the way it is,” Ricardo Rikey said. “I just don’t know if I can go along with it, Rikey,” Lucy replied. “We have no choice. Juggyfroot is our biggest client, Lucy. They’ve warned us that they will put the engagement up for bid if we refuse to go along with the reclassification of marketable securities,” Rikey explained. “Have you spoken to Fred and Ethel about this?” Lucy asked. “Are you kidding? They’re the ones who made the decision to go
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North Face Case Questions 1. Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given financial statements? Defend your answer. No, clients are not required to accept all proposed audit adjustments that need to be made to the financial statements. However, the auditor is required to challenge management to justify not recording these adjustments. Regardless of the justification, the auditor needs to be aware that
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AICPA violations committed by Andersen and Enron CPAs. 1. Article I – requires professionals to maintain the integrity of the profession, as well as, maintain the public's confidence which was not done by Arthur Andersen when the signed off on document knowingly containing material misstatements which is a violation of the very essence of auditing principles. The CPAs of Enron should have stood up for their morals and the public’s best interest when they saw what was occurring. 2. Article
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1. (1) SAS 99 states the professional skepticism as an attitude that includes a questioning mind and critical assessment of audit evidence. The auditor should conduct the entire engagement with an attitude of professional skepticism, consider audit evidences seriously, and finally, the auditor should continuously question whether information and evidence obtained suggest that material misstatement caused by fraud has occurred. (SAS 99) (2) Will found out that one cash payments wasn’t deposited into
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