...vital financial information that they need to make informed decisions about where our company needs to go in the future to become more of a success. Working with other accountants and various departments we make sure that the financial statements are done correctly and on time, make sure that all the tax preparation is done and paid on time, payroll, accounts payable, and accounts receivable are all done correctly and in a timely fashion. Another aspect of corporate accounting would be internal auditing. This is an important area as it helps to make sure that the company has strong internal controls and is preforming all of its tasks correctly. This area also helps to prevent and detect any fraudulent activity that might be occurring. All accountants are held to a Code of Conduct and this code can be found on the AICPA and FASB website. By adhering to this code of conduct it helps assure the people relying on the information that any accountant produces that it is reliable. Another aspect of the Code of Conduct is to help assure that the accountant will act as professionally as possible and can be trusted to do their job to the best of their ability. My current responsibility has been to evaluate the different business types and to recommend the best type for our new subsidiary. This has involved evaluating both the risk and ease of...
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...Memorandum- CPA Report Vincent Mokwenye ACCA 545- Financial Reporting Monday December 18, 2012 Memorandum- CPA Report MEMORANDUM Date: December10, 2012 To: Libby Grimes Re: CPA Report In response to your request for information, this memo will address the methodology used to determine deferred taxes, the various procedures used for reporting accounting changes and error corrections, and the rationale for establishing the subsidiary as a corporation. In addition it will address our professional responsibilities are as a Certified Public Accountants (CPA’s) and finally distinguish between a financial audit and a financial review. The Methodology used to Determine Deferred Taxes The accounting for tax liability is governed by the internal revenue service (IRS) code whereas income statement financial reporting is done according the generally accepted accounting principles (GAAP). The taxable income reported to the IRS is based on the cash basis accounting whereas the pre-tax profit reported in the income statement to the stockholders is prepared using the accrual accounting. As a result, there is a difference between the tax liability reported to the IRS and the tax expense reported in the income statement. This causes the book income reported to stockholders to be different from the tax income reported to the IRS. If certain revenues and/or expenses are reported in different years in income statements and on income tax returns, an asset or liability called...
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...Memo To: Manager From: CC: Date: Re: Professional Responsibilities of a Certified Public Accountant (CPA), and the differences between an audit and a review “Accountants, as professionals, are expected to maintain a level of ethical conduct that goes beyond society’s laws” (Schroeder, Clark & Cathey, 2005, p. 563). Therefore, the American Institute of CPAs (AICPA) established a Code of Professional Conduct to ensure public confidence in the quality of services provided by CPAs (Schroeder, et al., 2005). The June 12, 2012 Code of Professional Conduct list the Principles as; Responsibilities, Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services (AICPA, 2013). The principle of responsibilities requires the CPA to perform their responsibilities as professionals, by exercising sensitive professional and moral judgments on activities (AICPA, 2013). The principle of public interest requires the CPA to approach duties in a way that serves the public interest, honors the public trust and demonstrates commitment to professionalism (AICPA, 2013). The principle of integrity requires the CPA to maintain and expand public confidence, and execute professional duties with the highest level of integrity (AICPA, 2013). The principle of objectivity and independence requires the CPA to be free...
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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, objectivity and independence, responsibility to the public and due care. Moving forward, ethical issues related to greed, corruption and collusion approaches my life in an everyday basis. Becoming one of CPA after graduation, I may also need...
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...ACC 3213: Intermediate Financial Accounting III, Fall 2013 Class Time/Room: Section 1: MW 12:00 – 1:50 PM A&E 0293 Section 2: MW 6:00 – 7:50 PM Science S205 Instructor: Kim Shima, PhD, MAcc, CPA Office: VBT 352 Phone/Voice Mail: 885-7176 E-mail*: kim.shima@csueastbay.edu Office Hours: MW 2:00-3:30 PM or by appointment Prerequisites: Acct 3212 or its equivalent with C- or better. Course Materials: Intermediate Accounting, 7th ed., Spiceland, Sepa, and Nelson CONNECT program (available with book purchase) PPT slides available on Blackboard site Basic Four Function Calculator (cell phones, iPods, and graphing calculators may not be used as a calculator on exams) Course Description and Objectives: This is the last course in a three-course sequence on intermediate financial accounting. The objectives of this course are to reinforce the fundamental knowledge developed in ACCT 3211 and ACCT 3212 and to continue to build the understanding on the theory and practice of financial reporting. During this course, we will cover topics such as income taxes, pensions and other post-retirement benefits, shareholders equity, share-based compensation, earning per share, accounting changes and error corrections, and the statement of cash flows (revisited). Homework and three exams are used to evaluate students’ understanding of the material. Special note: although the emphasis of this course is US GAAP, we are...
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...University of Alberta, School of Business Accounting 415/615 (Winter 2016) Department of AOIS Intermediate Financial Accounting II Instructor: Office: Phone: E-mail: Jason Lee BUS 4-30B 780-492-4839 jason.lee@ualberta.ca Office Hours: MW 11:00AM– 12:00AM Or by appointment Lecture Sections: B1 B2 MW MW 9:30AM – 10:50AM 12:30PM – 1:50PM BUS 1-10 BUS 3-10 Course Description and Objectives: ACCTG 415/615 is the second part of Intermediate Financial Accounting. This course builds upon materials learned in previous financial accounting courses including ACCTG 311 and ACCTG 414/614. The focus of this course is on accounting for financing, liabilities and equity, and related income measurement, and disclosure with an in-depth examination of complex measurement issues. Together with ACCTG 414/614, Intermediate Financial Accounting covers virtually every important corporate reporting topic. Students are expected to master the vast body of knowledge on accounting for activities of an enterprise and preparing accounting information. A professional accountant’s expertise depends on both technical skill and professional judgment. During this course, students are expected to work towards developing the expertise through a lot of quantitative practice and a thorough understanding of the rationale (conceptual basis, assumptions, facts of circumstances, etc.) for each accounting method. This is a difficult course. For each topic covered, there...
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...Running head: Auditing Introduction Letter Auditing Introduction Letter From: Charles, Olds and Waterford, CPA To: Apollo Shoes Inc. Dear Mr. Lucas, As the auditor of a local audit firm, Charles, Olds and Waterford, I feel privileged of being given an opportunity to highlight certain aspects of our firm and the services we offer. Considering your precious time, I would try to keep the information as precise as possible. Our firm, Charles, Olds and Waterford has been in business successfully for like 15 years. We ensure that our clients have effective internal controls and efficient fraud detection procedures in place. Our firm always tries to develop close links with our audit clients. We employ highly educated as well as trained staff members and ensure that audit tools are of high quality. We have a successful audit approach as we greatly focus on understanding our clients’ business including their control issues, and incorporate diagnostic procedures, risk assessment procedures and audit testing techniques. The audit and assurance services offered by our firm would prove to be really beneficial to your company. There are four distinct types of these services through which we can verify whether an assertion is reliable or not. They are as follows: 1) “Audit of Historical Financial Statements 2) Effectiveness on Internal Control over Financial Reporting 3) Review of historical financial statements 4) Other attestation services that...
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...behaviour is a base which is required in the accounting profession to provide a proper and professional service to a client who just relies on the information provided by the accountant. This helps to build a reputation and in as well in the eyes of the client that the accountant is reliable and adds to their degree of trustworthiness for the client. The reason it has become so important to monitor the ethical behaviour of accountants is because of the recent scandals by corporate and accounting firms like Enron and WorldCom as mentioned by (Chan, 2006). It was further mentioned that ethical problems are a part of any business due to the interaction of the accountants with so many people with different interests that it leads to conflict of interests. Many different people have different views about ethics. The basic meaning of ethics is the authority of custom and tradition (Svensson, 2003). It was further stated that ethics is more of a mix of philosophical thoughts over a period of time as compared to being a fixed concept and each culture has its own norm of what is acceptable and what is not. Another view point by (Duska, 2011) stated that ethics is related to analysing what is right in the eyes of the person and the law. It consists of a set of moral principles that vary between individuals that distinguish between good or bad. While some of the ethical behaviour is implied, the professional framework of the acceptable code of conducts just ensures that the explicit norms are...
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...This memo outlines the following questions: What is the methodology used in determining deferred taxes, what is the procedures for reporting accounting changes and error corrections, and what is the rationale behind establishing the subsidiary as a corporation. It will also detail the professional responsibilities of a CPA and what the differences between a review and an audit are. The professional responsibilities of a CPA are to uphold the rules set forth by the State board of Certified Public Accountants, and to conduct ourselves in a manner bound by the rules of the AICPA’s Professional Code of Conduct. They also include: independence, scope of service, confidentiality, practice development, and difference on accounting issues. A CPA at all times should maintain a high level of ethical conduct that goes above and beyond society’s laws. As a CPA we are to keep our professional judgment unbiased and base our opinions on factual information and keep all personal interest separate from the work. CPA’s should keep all client information confidential, and only report information deemed necessary for investors and outside users, as well as determine and discuss with the client and differences in accounting issues that relate to transactions are handled so that they may be resolves in an accurate and timely manner (Schroeder, 2005). The difference between and audit and a review is that an audit provides a basis for an opinion for a company’s financials. A review on the...
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...have difficulty.) Prerequisites: BMGT 110 (or at least two years of business or management experience) and ACCT 221. A comprehensive analysis of financial accounting topics involved in preparing financial statements and in external reporting. Students may receive credit for only one of the following courses: ACCT 310 or BMGT 310. Course Goals/Objectives This course should help you develop the ability to apply GAAP to a variety of complex accounting and financial reporting situations. The specific goals of this course are to: • provide a more extensive understanding of financial accounting principles and procedures and their role in the managerial decision-making process, through (a) the textbook and other written materials, (b) discussion of accounting topics via Web conferencing and online case study assignments, (c) research on the World Wide Web, and (d) FARS / Financial Accounting Research System • present financial accounting processes, procedures, terminology, concepts, and case studies • provide a higher level of problem-analysis and problem-solving ability through the use of CPA-level professional accounting materials After completing this course, you should be able to: • solve problems by analyzing, calculating, and completing accounting exercises covering topics of financial reporting • apply accounting concepts, principles, and procedures to business, international, and ethical transactions and events, through real-world case studies and...
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...say what they see when some unfavorable things happen. They have the willing to be audited reveals that they want to pursue their business endeavors in future and want more professional ideas about how to prepare their financial statement. This attitude also means they want to control the uncertain risk in their company. 4. Organizational Structure 5 Phil takes care of employees training. Mr. Day as the office manager assigning of daily duties and overview of each day’s accounting records. Sometimes may have overlapping of duties because they assign works based on who are available. Buy overall, they I don’t think they have a need to hire an extra accountant to help them review the accounting records. Only the key person has the key to the office. 5. Financial Reporting competencies 4 Management looking into using a new accounting software and try to make the bookkeeping process easier. Because the business is getting bigger, hence the company is also considering build a budgetary accounting system. Because it’s just a plan, we cannot give them...
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...reporting accounting changes and error corrections, and the rationale for establishing the subsidiary as a corporation. In addition it provides information on the professional responsibilities of Certified Public Accountants (CPA’s). Finally, a distinction is made between a financial audit and a financial review. The Methodology used to Determine Deferred Taxes It is common knowledge that companies report different amounts of income on their income statements and tax returns respectively. This difference is caused by the fact that taxable income is determined on the cash basis of accounting using the internal revenue service (IRS) code; whereas the pre-tax income reported on the income statement is determined on the accrual basis of accounting using generally accepted accounting principle (GAAP). This difference in accounting basis causes the differences in the amounts reported on the income statements and the tax returns. This temporary difference is responsible for deferred tax liability or asset that is recorded on a company’s balance sheet. Therefore, where the amount of taxes payable in the future years is known, it must be accrued and reported on the balance sheet as a deferred tax (Kieso, Weygandt, & Warfield, 2008). Procedures for reporting accounting changes and error corrections When a company changes the accounting principles that it has hitherto used to report a class of transactions to another principle, there is said to be a change in accounting...
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...GAAP or IFRS WHEN WILL WE CONVERT? Paris Williams 10/1/2013 The accounting profession is on the verge of one of the most significant changes since the 1930s. In the very near future there is a great possibility that the United States Generally Accepted Accounting Principles (GAAP), as it is known today, will be replaced by the global standards known as the International Financial Reporting Standards. This paper will provide a history of IFRS and discuss the time frame of the conversion, along with is effects on U.S in the accounting perspective. Over the past few years, much talk of U.S adopting the IFRS as the basis for accounting principles has circulated amongst the accounting and business world. Although many may resent the conversion from U.S Generally Accepted Accounting Principles (GAAP) to the London-based International Financial Reporting Standards (IFRS), the movement has already began. Plans for this movement have already been proposed and put into effect, project and trials are being observed, and results are soon to come as the SEC and others make their final decision. However, with such a complex transition one must propose many questions such as, how will the movement affect us? What are some of the advantages and disadvantages? How do we adjust, and what is the ultimate benefit and purpose of converting? GAAP and IFRS are two separate sets of accounting standards used in different countries of the world. Although they both have the same...
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...Econ 136A: Intermediate Accounting University of California Santa Barbara Fall 2015 Syllabus Professor: Douglas E. Kulper Office Hours: Mon 12:45 – 1:45 pm Office: North Hall 3050 Mon 5:00 – 6:15 pm E-mail: doug.kulper@ucsb.edu Wed 5:00 – 6:15 pm Class Meeting Information Class Time: Monday/Wednesday, 2:00 pm – 3:15 am (Room: NH 1110) Class Time: Monday/Wednesday, 3:30 pm – 4:45 am (Room: NH 1110) Course Description Three hours lecture/discussion/problem solving. An in-depth analysis of recognition, measurement, classification, and valuation issues in financial reporting within the framework of generally accepted accounting principles. Required Text Intermediate Accounting, 15th Edition, Kieso/Weygandt/Warfield Note: It is critical that you use this edition. Materials 1. GauchoSpace at https://gauchospace.ucsb.edu/ 2. WileyPLUS (Course ID: 478331) 3. PowerPoint Slides at Wiley’s website or on GauchoSpace 4. Non-Programmable Calculator – not your phone or a programmable calculator Course Format As discussed below, there will be regular homework, a number of small quizzes, and three noncumulative exams. This course will be rather flexible and students will be responsible for checking e-mail and/or GauchoSpace each week for announcements, corrections, and clarifications to the schedule. GauchoSpace This class is set up on GauchoSpace. I will post announcements and other relevant...
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...Explaining Basic Accounting Concepts and Business Structures University of Phoenix 11/20/2010 Accounting 537 Explaining Basic Accounting Concepts and Business Structures There are many important aspects of accounting. The generally accepted accounting principles are accounting rules set out for companies to follow to ensure all companies are on the same page business wise. Qualities of accounting are important in the decision making process of accounting. Accrual and cash bias methods are different ways to count revenue and will be discussed. The final area of review is the different types of business structures. Generally Accepted Accounting Principles. Generally accepted accounting principles are a set of standards and procedures (Kieso, 2007). The AICPA’S Code of Professional Conduct requires all financial statements in accordance with GAAP. The source of hierarchy is based on four categories; A, B, C, and D with A being the most authoritative and D being the least. A/CPA accounting interpretations, Implantation guides, and widely recognized and prevalent industry practices are all included in the D level. The C level is made up of emerging issues and practice bulletins. Level B is no longer issued bulletins, audit and accounting guides, and statements of position. Level A is made up of FASB standards, interpretations, and staff positions, APB Opinions, and AICPA Accounting research bulletins. The hierarchy lists the...
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