Generally Accepted Accounting Principles Introduction In the past, the financial statements of health care organizations’ were fairly easy to compare. Historically, members of the healthcare community had applied similar sets of accounting rules without regard to their business structure. This meant that whether an organization was a for-profit, nonprofit, or a government owned, every healthcare entity was considered to be in the same industry and the accounting procedures they were forced
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over time and made the transactions hard to find, making WorldCom look profitable when it was not. Several conflicts occurred between WorldCom’s accounting department and the AICPA. The individuals involved, failed to follow the rules and regulations of the AICPA. Cynthia Cooper followed every aspect of the AICPA Professional Code of Conduct. She went to Scott Sullivan to see what he thought about what was happening. She made sure to keep the best interest of the public and the company
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statements. These rules and regulations protect the stakeholders and public from any wrong, fraudulent reporting and unethical behavior. The main agencies are (SOX), Sarbanes and Oxley Act of 2002, (GAAP), Generally Accepted Accounting Principles and the AICPA Code of Professional Conduct. In order for Terry Reed, and his accounting team to come up with a viable solution to their reporting dilemma, they must follow the rules and regulations of these agencies to make a sound decision which is legal and ethical
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AICPA Case Development Program Case No. 2001-06: TechMall.com’s Revenues ♦ 1 TechMall.com’s REVENUES Monte R. Swain, Associate Professor Brigham Young University, Provo, Utah Kip R. Krumwiede, Assistant Professor Brigham Young University, Provo, Utah Kevin D. Stocks, Professor Brigham Young University, Provo, Utah Kyle J. Pexton, Vice-President Finance Authorize.Net, Inc., Provo, Utah TechMall.com’s Revenues1 As Sheri walked back to her office from the morning’s meeting, she was painfully aware
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Basic Accounting Concepts and Business Structures Different types of businesses use different accounting methods, small businesses tend to use the cash-basis of accounting, whereas the accrual method is a requirement for large business with revenue more than 5 million. Uniformity of accounting information is important when making decisions for or about a business. A hierarchy of sources provides structure for the generally accepted accounting principles (GAAP). Along with the hierarchy of sources
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(Kieso, Weygandt, and Warfield (2007). These are the Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB), and the Government Accounting Standards Board. (GASB) (Kieso, Weygandt, and Warfield (2007) The SEC is the sole body for enforcement, with the AICPA and the FASB having been created at the urging of the SEC for a private sector entity to use its resources to establish effective guidelines. The SEC
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when they believe a company’s financial statements contain errors. The second group responsible for developing GAAP is the American Institute of Certified Public Accountants (AICPA). The AICPA has introduced boards and committees that help develop GAAP. The Committee on Accounting Procedure (CAP) was founded by the AICPA and issued Accounting Research Bulletins that dealt with accounting issues on a problem by problem basis. CAP was eventually dissolved, and the Accounting Principles Board was
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1. According to the AICPA Code of Professional Conduct, which of the following actions by a CPA must likely involve an act discreditable to the profession? A. Retaining client records after the client demands their return B. Auditing financial statements according to governmental standards despite the client’s preferences C. Accepting a commission from a nonattest function client D. Refusing to provide the client with copies of the CPA’s work papers A client想要要回去的时候 应当归还 2. In which of
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CHAPTER 1 Governmental and Nonprofit Accounting: ENVIRONMENT AND CHARACTERISTICS ANSWERS TO QUESTIONS QUESTION 1-1 a. The similarities of accounting for profit-seeking and G&NP organizations include: 1. Double-entry system of accounts. 2. Most accounting mechanics, e.g., basic transaction documents, journals, ledgers, charts of accounts. 3. Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting largely parallels that
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I consider the Code of Conduct to be used as a platform of rules, or values, for CPAs while engaged in all types of assurance, non-assurance services, and should apply to all auditing functions in any given business environment, including government and non-for-profit companies. Furthermore, I feel the three key elements of the code that all CPAs should adhere to are the Integrity and Objectivity Rule, General Standards, and Acts Discreditable Rule. As a final point, could these codes of conducts
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