Ernst & Young released its 2011 European Fraud survey that includes a warning against the manipulation of asset impairment write downs due to the subjective factors used and judgment needed to draw conclusions about the proper amount of write downs. The PCAOB found 123 audit deficiencies related to asset-valuation problems found among clients of the Big Four accounting firms in 2010, making asset valuation the most common problem. How do the rules for determining the impairment of long-lived assets explained in the chapter contribute to the possibility of audit deficiencies? Is this an area where GAAP should be converged with IFRS, or vice versa?
Answer to relevant QuestionsIn this chapter we discuss the Joe Paterno matter at Penn State. Another situation where a respected individual’s reputation was tarnished by personal decisions having nothing to do with performance on the job is the ...How does virtue theory apply to both the decision maker and the act under consideration by that party? Explain.1. Analyze the behavior of each party from the perspective of the Six Pillars of Character. Assess the personal responsibility of Ed Giles and Sue Regas for the relationship that developed between them. Who do you think is ...The 2011 Bribe Payers Index by Transparency International’s (TI) ranks the world’s largest economies according to the likelihood of firms from these countries to bribe when doing business abroad. TI asked 3,016 senior ...1. Use ethical reasoning to evaluate the actions of Shell management in this case with respect to accounting for and disclosing information about proved reserves.2. In chapter 7 we discussed aggressive accounting and ...
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