99 Chapter 8 Litigation Services Provided by Accountants CHAPTER SUMMARY Overview This chapter explains what standards apply to accountants when they perform litigation services, discusses how to qualify as an expert witness, gives tips for testifying at a deposition or trial, and points out the potential liability that accountants risk when they testify at trial. Litigation in the United States ¶8001 U.S. Tort Costs Climbing The U.S. tort system cost $248.1 billion in 2009, which was about
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becomes increasingly specialized, those who have extensive knowledge of the field gain power and are more valuable than those that do not. For instance, taxes may be difficult for many people to understand and therefore, they must hire tax accountants. The accountant has power because of their extensive knowledge so you hand them the ability to review your financial records. This plays role when managers of one specific Marriott need help making a decision. The manager consults with the general manager
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WorldCom, a Hattiesburg, Mississippi based company began as Long Distance Discount Service Inc. (LDDS). In 1989 through a merger with Advantage Companies Inc., went public. Becoming LDDS WorldCom in 1995 then changed to WorldCom. In 2000, the company suffered serious setback, the industry downturned forcing abandonment of its proposed merger with Sprint. WorldCom’s stock prices declined, the CEO was pressured to cover margin calls from the banks on WorldCom stock that was used to finance other
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corporate risks, companies’ accounting transactions are reported through financial statements. These financial statements are the masterpieces of accountants who analyze the transactions and measure the financial stability of the company if they are sustainable enough to defray any business risks. However, in presenting these statements, some accountants may mislead owners or decision makers through financial mistatements which affect the business itself. Because of this accounting malpractice, it
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activities and goals. First, it describes how the evolution and change in managerial accounting. Second, the essay looks at the role of managerial accountants. Third, it explains several function of managerial accounting that tend to contribute the adds value to organization. 2.0 INTRODUCTION According to the Chartered Institute of Management Accountants ( CIMA ), Management Accounting is defined as the process of identification, measurement, accumulation, analysis, preparation, interpretation
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In their career paths, auditors and accountants face numeric ethical issues related to greed, corruption, and collusion. They might unavoidably receive bribery offers, such as money, gifts, or property, to induce them to betray their duties. CPAs may be rewarded a commission fee for advertising goods and services. Accounting professionals may be given contingent fees based on the deliverables for their clients. From AICPA Code of Professional Conduct, major principles that might be violated are integrity
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Writing Assignment 2 Thus far, Intermediate Accounting has been very challenging. However, I do not think any of the topics discussed-to-date have been over my head, and at this point in the semester I am beginning to feel somewhat like an accountant, with a solid, basic know-how in my field of study. My brother recently asked me for my opinion on some loans for his new food business: I was almost giddy that I could easily work out some present values. Also, many of my courses this semester
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What are the advantages and disadvantages of the primary types of auditors? Which type interests you the most? Explain. The most common primary types of auditors are certified public accounting firms, government accountability office auditors, internal revenue agents, and internal auditors. CPAs are licensed to express audit opinions on financial statements and are used as independent or external auditors. I’m not currently aware of any disadvantages of being a CPA. GAO auditors work
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main culprit was Ernest Grendi, JWP’s CFO, helped by several of the company’s senior accountants. Moreover, the company’s external auditor, Ernst & Young, seems to be involved as well. This case will show regarding the auditor independence, its duty as professional accountant, fraud, and the perspective from the employees toward their higher-ups management. Background Its company’s name, before becoming as JWP, was the Jamaica Water Supply Company. It began its operations in 1886 as a small
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benefits to overcome above-mentioned problems. Not only the financial report preparers but also financial report users can be beneficial from XBRL. 1. For financial report preparers, XBRL can further increase the efficiency and effectiveness of accountants’ work3. They can automate the process of data collection. For example, data from different company divisions with different accounting systems can be assembled quickly, cheaply, and efficiently if the sources of information have been upgraded to
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