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The Please the World Club

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Submitted By rswp11
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Pages 9
The PTL Club
Case Study

Prepared by
Felix Rivero

For Professor Suiero in partial fulfillment of the requirements for
ACC 502- Advanced Auditing

School of Business/ Graduate Studies
FIU
Miami Gardens, FL
Spring 2014
May 15, 2014

Table of Contents
Issues……………………………………………………………….Page 3
Facts………………………………………………………………..Page 4-5
Analysis/ Authority………………………………………………...Page 5-9
Conclusions/ Recommendation…………………………………….Page 9
References………………………………………………………….Page 10

Issues
PTL case Issue #1
Some of the ethical questions raised by the maintenance of PTL’s secret payroll account by the Laventhol partner are? Since the PTL was a private organization not registered with the Securities and Exchange Commission should this affect the propriety of the partner’s actions?
PTL case Issue #2
PTL was a high risk client to Laventhol, what procedures should Laventhol done before accepting PTL as an audit client?
PTL case Issue #3
What is the definition of the deep pocket theory? What step can large public accounting firms use to protect themselves against large class action lawsuits with predicated upon false or largely unfounded allegation?
PTL case Issue #4
A. How does GAAS for PTL now differ from GAAS for a U.S.-based public company listed on a U.S. securities exchange? Explanation should include citations and examples. B. How does GAAP for PTL differ from GAAP applicable to U.S.-based public companies? Explanation should include citations and examples.
PTL Issue #5
Assume PTL was required by the IRS to "spin off" its businesses amusement park, timeshare project, etc., how would GAAS and GAAP differ between the tax-exempt religious organization and its wholly-owned business subsidiary? Explanation should include citations and examples.

Facts * In 1974, PTL Club or Praise the Lord Club hosted and found by Jim Bakker and co-hosted and

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