1. The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe were most responsible for that crisis. Briefly justify each of your choices. In our opinion, we believe that Enron’s top executives- Kenneth Lay, Jeffrey Skilling, Andrew Fastow, and the Andersen auditing firm are mainly responsible for the “crisis of confidence.” As the top executives of the Enron Corporation, Lay
Words: 1683 - Pages: 7
Chapter 2 The CPA Profession Review Questions The four major services that CPAs provide are: 1. Audit and assurance services Assurance services are independent professional services that improve the quality of information for decision makers. Assurance services include attestation services, which are any services in which the CPA firm issues a report that expresses a conclusion about the reliability of an assertion that is the responsibility of another party. The four categories of attestation
Words: 3111 - Pages: 13
earnings by manipulating the recognition of revenue. Among the most common methods of doing this are the bill-and-hold transaction and a long list of sham transaction involving shipping, billing and/or related-party involvements. Both the SEC and the AICPA seek to increase independent auditors' awareness of problems associated with these practices. Full Text: | Copyright American Institute of Certified Public Accountants Oct 1999 | [Headnote] Where there's revenue-recognition deviation, there could
Words: 2337 - Pages: 10
Chapter 3 1. Capital budgets focus on plans for the acquisition and construction of fixed assets. 2. The accounting cycle for most governments is two to three years, consistent with the terms of elected officials. 3. Most budgets are prepared on a cash or modified cash basis. 4. Neither the GASB nor the FASB sets standards for budgetary accounting. 5. State and local governments must prepare their GAAP budgetary comparisons on the modified accrual basis of accounting. 6. When
Words: 1735 - Pages: 7
ACC/546 Auditing Week 1 Assignment – Assurance Services Professor Foster To: Apollo Shoes From: Small Firm CPA, Chris Matthews, Lead Auditor RE: Assurance Services Based on the accounting department meeting on January 10, below is an outline of the primary assurance and attestation services offered by Small Firm CPA. This outline will provide the company with additional detail regarding key distinction between these service offerings as well as their intended use. In addition to highlighting
Words: 796 - Pages: 4
accountants would proceed in recording and preparing the company’s financial statements. The top of the hierarchy has the FASB’s statements and The American Institute of Certified Public Accountants’ (AICPA) opinions. The bottom consists of the FASB’s questions and answers and interpretations from AICPA. Top sources come first then down the hierarchy if there are no pronouncements at the top level (Keiso et al., 2007, p. 13). Accountants are a vital part of companies since they provide financial statements
Words: 749 - Pages: 3
materially extend the life of the assets are capitalized. Depreciation is computed on a straight-line basis over the estimated useful life of the related assets. For income tax purposes, depreciation is computed using the accelerated cost method (AICPA). Major classification and related useful lives are summarized below: Estimated | | Accumulated | | Useful Lives | Cost | Depreciation | Net Value | Land | - | $ 000,000 | $ - | $ 000,000 | Building | 25 years | 0,000,000 | 000,000
Words: 715 - Pages: 3
Auditing 402 March 5, 2013 Week 9- Week 11 Homework Assignments 15-26 A. Effective audit procedure for testing whether shipments have been billed is a sample of warehouse removal slip should be selected. It should be examined to see whether it has the proper sales invoice attach or not. So the sampling unit for the audit procedure will be warehouse removal slip. B. Using attribute sampling method if the auditor is willing to accept the TER of 4% and at ARACR of 5% without exception in the sample
Words: 787 - Pages: 4
While pursuing a career in the accounting field, it is almost vital to become a Certified Public Accountant to advance further. Not only do others respect and admire your Accounting education, “CPAs achieve a level of expertise and proficiency beyond that of a “standard” accountant-proudly earning them the designation of CPA” (NASBA). While preparing for the CPA exam, you further your accounting knowledge with extensive studying of vigorous material. In addition to prestige and respect, by becoming
Words: 933 - Pages: 4
Becker worked for Becker professional program till 1998. Role of Becker Professional Education The Becker CPA preparation program is the number one preparation program for passing the CPA exam. American Institute of Certified Public Accountants (AICPA) has estimated that more than 400000 people who took the course has passed CPA exam (Tysiac, 2012). So many big organizations have partnered with Becker for their employee training. The Becker CPA program has most up-to-date syllabus for the CPA exam
Words: 746 - Pages: 3
