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Colorado State University, Fort Collins *
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300
Subject
Accounting
Date
May 11, 2024
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docx
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5
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Question 1
1
/ 1
pts
Theresa is the controller for a large privately held corporation. She has recently received her CMA designation, and she was already a CPA. Which ethical standards regarding the integrity of the financial information she handles will apply to her in her current role?
I. Sarbanes-Oxley Act
II. IMA Statement of Ethical Professional Practice
III. AICPA Code of Professional Conduct
IV. Corporate Ethics Policy
II, III, & IV
I, II, III, & IV
II & IV
I, II, & III
Correct! The only one that would not apply would be Sarbanes-Oxley Act because she does not work for a publicly traded company. IMA and AICPA guidance both apply to professionals working in private industry. The company’s ethics policy should always apply to any employee. If there is a conflict among the standards, Theresa should generally follow the highest standards and report the conflict to the appropriate governing body.
Question 2
1
/ 1
pts
Which of the following costs would
not
be associated as part of the value chain?
Cost of a toll-free telephone line for customer inquiries on product use and care
Cost of property insurance on the plant
Cost of steel for an automobile manufacturing company
Advertising expenses related to the rollout of a new product line
Correct! Although they are necessary expenses, general operating expenses such as property insurance aren’t usually considered part of the value chain.
Question 3
1
/ 1
pts
The title of the person within the finance organization who generally has direct responsibility for the financial accounting and managerial accounting is the ________.
Chief Executive Officer
Chief Finance Officer
Controller
Treasurer
Correct! The Controller is the financial executive primarily responsible for management accounting and financial accounting.
Question 4
1
/ 1
pts
A method of cost assignment where a cost can be associated to the particular cost object in an economically feasible way is called ________.
cost allocation
cost driver
budgeted cost
cost tracing
Correct! Cost tracing describes the method of assigning direct costs to a particular cost object using documents like material requisition forms.
Question 5
1
/ 1
pts
The formula for computing cost of goods manufactured is ________.
Beginning work in process inventory + manufacturing costs during the year -
ending work in process inventory
Beginning inventory of finished goods + cost of goods manufactured - ending
inventory of finished goods
Beginning inventory of materials + purchases of materials during the year - ending inventory of materials
Direct materials used + direct labor used + manufacturing overhead costs
Correct! Cost of goods manufactured runs through the work-in-process inventory balance sheet account, so the formula for computing cost of goods
manufactured is the net change in the work in process inventory account plus manufacturing costs during the year.
Question 6
1
/ 1
pts
SVC Corporation’s total revenue is $5,400,000. Direct materials are $730,000, and direct manufacturing labor is $1,200,000. Variable manufacturing overhead is $400,000, and fixed manufacturing overhead is $580,000. Selling and administrative expenses are $365,000. What is cost of goods sold?
$2,125,000
$2,490,000
$2,890,000
$2,525,000
Correct! Revenue - materials - labor - overhead = cost of goods sold. $5,400,000 - $730,000 - $1,200,000 - $400,000 - $580,000 = $2,490,000.
Question 7
1
/ 1
pts
For a manufacturing company, these costs flow through work-in-process and finished goods accounts and are expensed as cost of goods sold.
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Related Questions
Question 1
In order for public to have confidence in work perform by professional accountants it is essential to
have a system regulation. Regulation can take the form of both ethical and statutory guidance.
Required;
a) State the five threats contained within IESBA's Code of Ethics for professional Accountants and for
each threat list one example of circumstance that might create the threat.
b) Explain the Auditor's ethical responsibilities with regards to client confidentiality and when they
have obligatory responsibility to disclose client information on a voluntary responsibility to disclose
client information.
Compliance with the fundamental principles in IESBA's Code of ethics for Professional Accountants
can be threatened in a number of ways.
Required;
c) Explain each of the five fundamental principles of IESBA's Code of Ethics for Professional
Accountants.
d) List the five ethical threat to independence and objectivity and for each threat identify one
example of a circumstance…
arrow_forward
Question 5
a) List and briefly the main threats to independence and
objectivity as identified in IESBA's Code of ethics for
Professional Accountants, for each threat you should give an
example.
b) Briefly explain the fundamental principle of confidentiality
and list the circumstances in which obligatory and voluntary
disclosure of Information may be applicable.
Professional accountants are often involved in many different
types of work ranging from performing the external audit to
providing wider assurance services.
Where an external audit is carried out the auditor required to give
an opinion as to whether the financial statements present fairly
the activities of the business over a period of time.
c) Explain the concept of true and fair presentation.
arrow_forward
16
AICPA is a professional accounting body offering a CPA qualification. What is the abbreviation of the term AICPA?
a.
American Institute of Certified Public Accountant
b.
Associated Chartered Accountant
c.
Association of Internal Certified Private Accountant
d.
Association of International Certified Public Accountant
Clear my choice
arrow_forward
250 words
What is your definition of the term "independence" as applied to the CPA's function of auditing and expressing an opinion on a company's financial statements?
arrow_forward
QUESTION 3
The IFAC international Ethics Standards Board for Accountant (IESBA) Code of Ethics for Professional
Accountants set out the five fundamental principles of professional ethics and provides a conceptual
framework for applying those principles. Professional Accountants must apply this conceptual framework
to identify threats to compliance with the principles, evaluate their significance and apply appropriate
safeguards to eliminate or reduce them so that compliance is not compromised.
Required:
Explain FIVE major threats identified in the code of ethics giving ONE example of each.
arrow_forward
Discussion Questions on Fraud Prevention from Chapter 4 Fraud Examination 4th Edition
1. How do organizations create a culture of honesty, openness, and assistance?
2. What are different ways in which companies can eliminate opportunities for fraud?
3. What is the purpose of adopting a code of ethics throughout a company?
arrow_forward
16
Which one of the following code of ethics, shows the way to professional accountant to comply with the relevant laws and regulations and should avoid any action that discredits the profession?
a.
Objectivity
b.
Confidentiality
c.
Professional Behavior
d.
Integrity
arrow_forward
CHAPTER SUMMARY Ethical issues in finance are important because they bear on our financial well-being. Ethical misconduct, whether it be by individuals acting alone or by financial institutions, has the potential to rob people of their life savings. Because so much money is involved in financial dealings, there must be well-developed and effective safeguards in place to ensure personal and organizational ethics. Although the law governs much financial activity, strong emphasis must be placed on the integrity of finance professionals and on ethical leadership in our financial institutions. Some of the principles in finance ethics are common to other aspects of business, especially the duties of fiduciaries and fairness in sales practices and securities markets. However, such activities as insider trading and hostile takeovers raise unique issues that require special consideration. Insider trading is prohibited because it involves trading of information not publicly available or…
arrow_forward
48
Who among the following professionals is assigned the task of internal auditing in the company?
a.
Managing Director
b.
Chief Accountant
c.
External auditor
d.
Internal auditor
arrow_forward
>
Question 3
Please match the individual/group listed in the left hand column with the function he/she/they perform.
The Independent Auditor
The Compensation Committee
The Audit Committee
The CEO and the CFO
The Governance Committee
✓ [Choose ]
Issuing a report on the financial statements and ICFR
Pre-approving audit and non-audit services
Nominating new board members
Determining the salary of the CEO
Signing off on disclosure controls and ICFR
[Choose ]
[Choose ]
[Choose ]
arrow_forward
3 of 6
Ex 1.
If all companies had an objective of maximizing shareholder wealth,
would people overall tend to be better or worse off?
Ex 2.
What is the financial management all about?
Ex 3.
What are the three majör functions of the financial management? How
are they related?
arrow_forward
Which of the following places more pressure on ethics officers to monitor financial and sales reporting?
A
B
с
D
E
Sarbanes-Oxley Act
Federal Sentencing Guidelines for Employees
Ethics Officer Responsibility Act
Sherman Antitrust Act
Enron Financial Responsibility Act
arrow_forward
Question 3: Corporate Governance & Ethics
(b) For each of the following ethical situations consider the fundamental principles of professional behaviour and:
- identify the fundamental principle at threat,
- identify the threat to the fundamental principle
- discuss how the accountant involved should resolve the situation
(i) You have been employed as a graduate accountant in a listed company and have been asked to complete a business report for the group. Your report must be completed by the tomorrow but vital statistics essential for the report will not be available for
another three days. Your immediate supervisor has made it clear you will be severely reprimanded if the work is not completed on time.
Answer space for question 3(b)(i)
Fundamental principle:
Threat:
Resolution:
(ii) At a party, an accountant speaks to another accountant, a person she has met for the first time, and says that she is amazed at the loss of her employer. She mentions the name of the…
arrow_forward
Please answer all 3 subparts
Question 1
(i) According to the National Code of Corporate Governance of Mauritius, the Chairpersonof an audit committee shall be:A. The Chairperson of the boardB. An independent non-executive directorC. The CEOD. The chief financial controller
(ii) The oversight function of corporate governance is performed byA. The company's board of directors and its designated committees.B. The auditors and the board of directorsC. The board of directorsD. The board committees
(iii) Which threat can possibly arise if an external auditor provides both audit and non-audit service to a clientA. IntimidationB. AdvocacyC. Self-interestD. Self-review
arrow_forward
19
From the options given below find the reason/s to regulate the inefficiency in accounting profession
a.
Regulation seeks to ensure that accounting services are of the right quality
b.
All the options
c.
Regulation is used to mitigate the potential impact of this inefficiency on the society
d.
Regulation is used to mitigate the potential impact of this inefficiency on the economy
Clear my choice
arrow_forward
Question 1 2020
(i) Which one of the following best illustrates the approach adopted by NCCG 2016?A. “apply and explain”B. “apply or explain”C. “comply and explain”D. “comply or explain”
(ii) Agency theory is based on the view thatA. The purpose of corporate governance (CG) should be to satisfy (as far as possible) the objectives of all stakeholders.B. Boards of directors are considered as important mechanism for reducing transaction costs associated with environmental interdependency.C. Corporate governance will be to employ or design techniques or systems that can secure the interests and values of the management.D. The system of CG should be designed to minimise agency problems & costs.
(iii) Which one of the following statements is not a relevant reason for an accountant to liaise with their predecessor when accepting a professional assignment?A. It is a matter of professional etiquetteB. To avoid the appearance of solicitationC. To determine whether the professional fees…
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20
From the options given below, who is/are responsible for overseeing the financial reporting process of the company?
a.
Auditor
b.
TCWG
c.
All the options
d.
Directors
arrow_forward
Compliance
A.while investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the securities Act of 1933 how does this influence you as a potential employee and as a shareholder? Be sure to reference any applicable statues of laws
B.You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?
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- Question 1 In order for public to have confidence in work perform by professional accountants it is essential to have a system regulation. Regulation can take the form of both ethical and statutory guidance. Required; a) State the five threats contained within IESBA's Code of Ethics for professional Accountants and for each threat list one example of circumstance that might create the threat. b) Explain the Auditor's ethical responsibilities with regards to client confidentiality and when they have obligatory responsibility to disclose client information on a voluntary responsibility to disclose client information. Compliance with the fundamental principles in IESBA's Code of ethics for Professional Accountants can be threatened in a number of ways. Required; c) Explain each of the five fundamental principles of IESBA's Code of Ethics for Professional Accountants. d) List the five ethical threat to independence and objectivity and for each threat identify one example of a circumstance…arrow_forwardQuestion 5 a) List and briefly the main threats to independence and objectivity as identified in IESBA's Code of ethics for Professional Accountants, for each threat you should give an example. b) Briefly explain the fundamental principle of confidentiality and list the circumstances in which obligatory and voluntary disclosure of Information may be applicable. Professional accountants are often involved in many different types of work ranging from performing the external audit to providing wider assurance services. Where an external audit is carried out the auditor required to give an opinion as to whether the financial statements present fairly the activities of the business over a period of time. c) Explain the concept of true and fair presentation.arrow_forward16 AICPA is a professional accounting body offering a CPA qualification. What is the abbreviation of the term AICPA? a. American Institute of Certified Public Accountant b. Associated Chartered Accountant c. Association of Internal Certified Private Accountant d. Association of International Certified Public Accountant Clear my choicearrow_forward
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- > Question 3 Please match the individual/group listed in the left hand column with the function he/she/they perform. The Independent Auditor The Compensation Committee The Audit Committee The CEO and the CFO The Governance Committee ✓ [Choose ] Issuing a report on the financial statements and ICFR Pre-approving audit and non-audit services Nominating new board members Determining the salary of the CEO Signing off on disclosure controls and ICFR [Choose ] [Choose ] [Choose ]arrow_forward3 of 6 Ex 1. If all companies had an objective of maximizing shareholder wealth, would people overall tend to be better or worse off? Ex 2. What is the financial management all about? Ex 3. What are the three majör functions of the financial management? How are they related?arrow_forwardWhich of the following places more pressure on ethics officers to monitor financial and sales reporting? A B с D E Sarbanes-Oxley Act Federal Sentencing Guidelines for Employees Ethics Officer Responsibility Act Sherman Antitrust Act Enron Financial Responsibility Actarrow_forward
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SEE MORE QUESTIONS
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