Chapter 01 Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit Entities True / False Questions 1. Special purpose governments generally provide a wider range of services to their residents than do general purpose governments. True False 2. Examples of general purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. True False 3. The Governmental Accounting
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LO: 18-1 AACSB: Concept AICPA Functional: Reporting 2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders. Answer: FALSE Diff: 1 LO: 18-1 AACSB: Concept AICPA Functional: Reporting 3) The IMA standards of ethical practice require managerial accountants to maintain their professional competence. Answer: TRUE Diff: 1 LO: 18-1 AACSB: Ethical Understanding AICPA Functional: Reporting 4)
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stress the need for their members to follow a code of ethics. The AICPA code is the primary source of guidance for those that practice public accounting while the IMA is concerned with a broader role for accounts and financial professionals that work inside the companies. There are likenesses and there are variances between the two but the main objective is to set professional standards for all types of accounting. The IMA and AICPA codes have a few similarities. Both discuss the importance of overall
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Chapter 01 Environment and Theoretical Structure of Financial Accounting True / False Questions 1. | The primary function of financial accounting is to provide relevant financial information to parties external to business enterprises. True False | 2. | Accrual accounting attempts to measure revenues and expenses that occurred during accounting periods so they equal net operating cash flow. True False | 3. | The FASB is currently the public-sector organization
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AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: Business Economics 39.A variable cost is a cost that a.varies per unit at every level of activity. b.occurs at various times during the year. c.varies in total in proportion to changes in the level of activity. d.may or may not be incurred, depending on management's discretion. Ans: C, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement
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And the independence is the backbone of the AICPA profession. This differs from management accounts which are not independent of their employer. Also, the IMA code provides a pattern of behavior to follow if a member is caught in an ethical conflict. • Institute of Internal Auditors Code of Ethics The Institute of Internal Auditors Code of Ethics are integrity, objectivity, confidentiality and competency. These are similar with the AICPA Code.But the IIA focuses on the sector of internal
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905 TYPE: N NAT: AACSB Reflective AICPA Legal B1. Through careless manufacturing practices, Insta-Market Company makes and sells unsafe products to Jess and other consumers. This may be subject to sanctions under a. federal and state law. b. federal law only. c. no law, according to the principles of freedom to contract. d. state law only. ANSWER: A PAGE: 905 TYPE: N NAT: AACSB Reflective AICPA Legal A2. Frosty’s Appliance Store advertises
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INTRODUCTION In this memorandum, I will address the incentives that Michael Joseph and the E&Y audit team had in the AIG case. Joseph and the audit team violated the AICPA Code of Conduct, particularly for section 90 and section 101. In addition, Joseph violated the AICPA section 50 pretending that he had not talked to the audit team. INCENTIVES According to SEC, Michael Joseph should have know that PNC’s SPE (Special Purpose Entities) transactions were not in compliance with GAAP. Also, Joseph’s
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Generally Accepted Auditing Standards are the general standards. This section has three guidelines that auditors must follow during their audit. The first guideline is the auditor must have adequate technical training and proficiency to perform the audit (AICPA). This technical training includes the auditor having an education in accounting and also continues with on-the-job training in developing and applying professional judgment in the real world
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extremely important as they may affect our audit results and findings. This internal memo is being distributed to all accountants in our office to provide information related to the new changes in standards and to show how the changes my affect you (AICPA, 2009). SAS No. 115 has replaced SAS No. 112 effective on or after December 15, 2009. SAS No. 115 was designed to bring awareness of deficiencies in internal controls and to assist in reducing the risks of financial statement misstatements. SAS No
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