Question: You received a letter from a disgruntled client concerning this
You received a letter from a disgruntled client concerning this year’s tax return that you just completed for his or her company. The client's business is in the second year of operations, and you remembered that it seemed to be much more profitable this year than during the first year of operations. You also recall that this particular client’s year-end work was assigned to a relatively new staff accountant, which might be part of the problem. The gist of the letter is that last year’s taxable net income was about $25,000, and according to the company’s calculations, the net income from this year should have been about $50,000. And so the client is wondering why the company is showing taxable net income of $75,000 on this year's return and paying income tax on that amount. You retrieve the file to review it and immediately see the problem. The staff accountant failed to make the closing entries at the end of the first year of operations!
Answer to relevant QuestionsCan ethics be taught in the college or university classroom? Why or why not? What are the three components of the fraud triangle? How can they be helpful in fighting fraud in an organization? Each of the following situations has an internal control weakness. a. Betty Grable has been your trusted employee for 30 years. She performs all cash-handling and accounting duties. Betty Grable just purchased a new Lexus ...Information from Goddard Picture Frames’ Cash account as well as the January bank statement is presented next. Cheque #210 was written for $300 to pay salaries. Requirements 1. Prepare the bank reconciliation on January ...The October bank statement of Blake’s Hamburger just arrived from First National Bank. To prepare the bank reconciliation, you gather the following additional data: a. The following cheques are outstanding at October ...
Post your question