a commission for a referral to a client of products of service of others. 5. A member’s fee may vary depending on the complexity of the service rendered. 6. A member is not precluded from responding to an inquiry by a trial board of the AICPA 7. A member may 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 be committed to
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there were problems with some investments. One big evidence and mistake was that Andersen earned $52 million in fees by doing the Enron books. The PCAOB oversees the audits of public companies in order to protect the interests of investors. The AICPA made several new Statements on Auditing Standards in response to the Enron events. The three that appear to be most closely linked to the Enron and Andersen debacle are SAS 96, SAS 98, and SAS 99. The FASB imposed stricter accounting and financial
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countries across the world. The eighth body is the Public Company Accounting Oversight Board (PCAOB). They were established to issue auditing standards for public auditing firms. The last body listed is the American Institute of Public Accountants (AICPA). They have worked with the FASB to assist in setting standards and technical
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Considerations Specific to Governmental Entities . A8 In audits of governmental entities, appropriate quantitative benchmarks for identifying significant components might include net costs or total 14 Paragraphs .28–.30 of section 315. AU-C §600.A2 ©2015, AICPA Special Considerations---Audits of Group Financial Statements 639 budget. Qualitative considerations in audits of governmental entities may involve matters of heightened public sensitivity, such as national security issues, donor funded projects, or
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Velocity Cellular: Trueblood Case 09-1 Case Study: Velocity Cellular Case Study: Velocity Cellular Revenue Recognition in a Multiple-Element Arrangement Velocity Cellular Services is planning the rollout of a new prepaid phone service called Power Starterpack. Using the current, relevant accounting guidance, determine and support the appropriate method for recognizing revenue for this new product. Power Starterpack Details Velocity Cellular sells the Power Starterpack for $200. The Power
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Question #1 Cloudy High-Yield Hedge Strategies and Cloudy Real Estate All Stars would be considered as alternative investments, according to the standards issued by AICPA. Typically, great examples of types of alternative investments are common/collective trusts, pooled separate accounts, stable value investments, private equity funds, hedge funds, real estate funds and etc. Because these funds have higher risk-return structure than normal index bonds, they are in the most of the time illiquid investments
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largest independent US body that is responsible for establishing and interpreting the accounting standards and practices that are known as the Generally Accepted Accounting Principles (GAAP). The American Institute of Certified Public Accountants (AICPA) is a regulatory body that develops standards for auditing and other services performed by certified public accountants. The Governmental Accounting Standards Board (GASB) is the entity which is responsible for setting the generally acceptable accounting
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CHAPTER 1 INTRODUCTION TO PROFESSIONAL RESEARCH Discussion Questions 1. Research in general involves the investigation and analysis of an issue in question. The researcher usually applies reasonable and reflective thinking to develop an answer to the issue or problem at hand. Research requires a clear definition of the problem, using professional databases to search the authoritative literature, reviewing and evaluating the data collected, drawing conclusions and communicating your results
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Chapter 2 Financial Statement Audits and Auditors' Responsibilities |Learning Check | 2.1 The ultimate objective of accounting is the communication of relevant and reliable financial data that will be useful for decision making. Accounting methods involve identifying the events and transactions that affect the entity. Once identified, these items are measured, recorded, classified, and summarized in the accounting records and reported in accordance with generally
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proliferation and growth of frequent flier programs created concerns about the proper way to account for and report them in financial reports. The airlines, the Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), and the Financial Accounting Standards Board (FASB) had each voiced concerns about measuring the expenses and reporting airlines’ obligations under frequent flier programs. The percentage of revenue passenger miles (the number of miles flown by revenue
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