Chapter 2, Problem 8EYCT

You are a CPA and you are the CFO (Chief Financial Officer) of USB Computer Technologies Inc., a company that specializes in customized business software. You have been requested by the board of directors of the company to attend its meeting. During the meeting, one of the directors asked you, "Why audits of our company performed by different auditors (internal, external, government). Before you could answer question, another direfctor mentioned "it would be more cost-efficient if our internal auditors will performed all the audits. "       Requirements. Write down your reply to each question of the members of the board of directors. In relation to your answer in number 1, identify the issues that must be explained to the Board.

Adrianna has been hired as an accounting coordinator at a new dermatology office. During a meeting with all staff, she learned that the office had a potential investor that was interested in helping to expand the practice. Adrianna knows that all public corporations are required to issue annual reports. She recalls that these reports can be used by the public to learn about the company’s financial well-being and their internal control procedures. Why is it important for this potential investor to review the practice’s internal control procedures prior to investing in the practice? Write a response of at least 250 words

If you were given the task of creating a Corporate Code of Ethics.  What are some of the items that you would include?  Feel free to research corporate websites and view existing corporate code of ethic's reports.  Required: Please respond by including at least five items that you would include in your new Corporate code of Ethics.

Ryan Clark was reviewing the previous year's audited financial statements of a clothing manufacturer. His manager explained that for a financial statement audit, the clothing company was the accountable party, its shareholders were the users, and the subject matter was the financial statements. What kind of audit engagement was his manager describing? a) consulting engagement b) assurance engagement c) review engagement d) compliance engagement

Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussing the audit fee, Allnet’s management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne’s firm. Q. What are some ethical considerations guiding your recommendation?

Karen Sepan, a recent graduate of the local state university, is presently employedby a large manufacturing company. She has been asked by Jose Martinez, controller, to prepare the company’s response to a current Preliminary Views published by the Financial Accounting Standards Board (FASB). Sepan knows that the FASB has a conceptual framework, and she believes that these concept statements could be used to support the company’s response to thePreliminary Views. She has prepared a rough draft of the response citing the objective of financial reporting. Instructions(a) Identify the objective of financial reporting.(b) Describe the level of sophistication expected of the users of financial information by the objective of financial reporting.

Describe how information reduces risk when you make a personal or work-related decision. What are information rules? How do they simplify the process of making decisions? What is the difference between data and information? Give one example of accounting data and one example of accounting information. List the five functions of an MIS. What are the components of a typical business report? Describe the three types of computer applications that help employees, managers, and executives make smart decisions. What purpose do audits and GAAPs serve in today’s business world? How do the major provisions of the Sarbanes-Oxley Act affect a public company’s audit procedures? What is the principal difference between a balance sheet and an income statement? How are current assets distinguished from fixed assets? Why are fixed assets depreciated on a balance sheet? How does the use of money solve the problems associated with a barter system of exchange? For a business firm, what type of activities…

Tana Thorne works at a public accounting business and aspires to be a partner one day. Thorne is invited to create a proposal to audit Allnet's financial accounts by the company's management. When considering the audit charge, Allnet's management offers a price range in which the amount relies on Allnet's reported earnings. The larger the profit, the higher the audit fee paid to Thorne's business. Describe any ethical factors that influenced your recommendation.

Assume that you have finished your MBA program and have applied for a position in the FinancialAccounting Department of a large multinational company. The company is struggling with itsaccounting reporting matters and several accounting reports are under regulatory scrutiny. In theinterview board, the recruitment committee members have asked you the following questions. i. What have you learnt in the BUS 505 course relating to financial accounting?