KaWanda Martin Enron Case January 29,2013 1. The parties that I feel are most responsible for that crisis include: Enron’s top executives, Kenneth Lay, Jeffery Skilling, and Andrew Fastow. Top management made the decisions to acquire the SPEs and to record the transactions of Enron stock for notes receivables. These notes were recorded in the assets section of the balance sheet rather than a reduction to owner’s equity. Kenneth Lay was responsible for not addressing the situation when
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1. Five procedures an auditor should perform in determining whether to accept a client. a. The firm’s independence in fact and in appearance. (required) b. Qualifications of the firm to undertake the engagement. c. Management of the reporting entity is honest and not involved in illegal acts. (required) d. The client’s financial reporting system, and internal control system, will provide fairly presented financial statements. e. Communicate with the previous auditor after receiving
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and issued 51 Accounting Research Bulletins (ARBs) over its lifetime. In 1949, they updated 42 of their original ARBs and codified them. a. History - In 1933, the Special Committee on Development of Accounting Principles was formed by the AICPA. Quite simply, this committee did not get much done and was replaced by the Committee on Account Procedures in 1936. For the first two years, this committee also made very little progress. In 1938, the Securities and Exchange Commission issued Accounting
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24 September 2012 Operations Whole Foods Market Inc. was established in Austin, Texas in 1980, and is “the world’s leader in natural and organic foods and America’s first national “Certified Organic” grocer with over 310 stores throughout North America and the United Kingdom” (Whole Foods, 2012). Whole Foods consists of one operating segment, natural and organic foods supermarkets. Whole Foods is the “largest retailer of natural and organic foods in the U.S. and the 10th largest
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handful of forward-looking accounting and technology experts came up with the idea of structured data for business information. Later that year, the American Institute of Certified Public Accountants (AICPA) was approached to spearhead the introduction of what was to become XBRL to the world. AICPA provided funding to begin research and development. In 1999, the prototype is completed and named XFMRL (Extensible Financial Reporting Markup Language). The prototype is describing XML as important for
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statements are affected as, though the statements are not materially affected, they have a right to know if the statements are dependable and reliable. Avis has a responsibility to all of these parties to the extent that she knows the fraud exists. 3. The AICPA professional code of conduct guideline explains about how an auditor could violate its independence, it does not prohibit from developing friendships with clients personnel but it does explain the limit to that friendship. Auditors can take any measures
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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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caused by factors such as personal distraction, carelessness, fatigue, errors in judgment, or unclear instructions in addition to fraud or deliberate noncompliance with policies. According to the American Institute of Certified Public Accountants (AICPA), effective and well designed internal control systems are still subject to execution risk. This means that human beings still must execute most control
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not accept a commission for a referral to a client of products of services of others. 5. A members’ fees may vary depending on the complexity of the service rendered 6. A member is not precluded from responding to an inquiry by trial board the AICPA 7. A member many not serve as a trustee for any pension trust of the client during the period covered by the financial statements 8. A member shall adequately plan and supervise an engagement 9. A member may not have or may be committed to acquire
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there is something not being done right they have the right to make any person that is working for that firm have to provide a testimony or that person could be suspended or debarred. The last one is the American Institution of Public Accountants (AICPA). They are the ones that work with the FASB to set standards and technical support. References Appendix H. (N/A). Regulatory Bodies with Roles in Accounting.
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