New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
organizational behavior

Ethics in Accounting A Decision Making Approach 1st edition Gordon Klein - Solutions

Your supervisor at work deliberately falsified how an illegal kickback payment the company made to a government official was reported. When others in your department went to lunch at a nearby restaurant, you had the opportunity to correct these schedules, but you did not do so. Have you committed a
Marilyn Greenen, a Washington State CPA, kept her ex-husband on her employer-provided health insurance policy, knowing that he no longer was a qualified family member entitled to coverage. Her employer later discovered her intentional misrepresentation and the Washington State Board of Accountancy
The IFAC Code of Ethics prohibits professional accountants from marketing promotions that "bring the profession into disrepute. This prohibition encompasses "disparaging remarks ...to the work of others." The AICPA Code of Conduct does not have a similar provision. Can you think of reasons why
You are a CPA who provides bookkeeping services to a small home remodeling company. This client principally uses its financial statements only for internal decision making. Recently, however, to obtain short-term trade credit, it agreed to submit unaudited annual financial statements to a new
A standard unqualified audit opinion states that financial statements "present fairly" a company's results "in accordance with generally accepted accounting principles." Does following GAAP necessarily "present fairly" a company's operating results? What should a company do if following GAAP does
Why was the Continental Vending case so important to the accounting profession?
Could a difference of less than one-tenth of a per cent in a company's Sales ever be considered material? In what circumstances?
Your financial planning client is a wealthy entrepreneur who owns diverse businesses and real estate holdings. This client is concerned with the market value of his assets and has no desire to read financial statements based on GAAP. As your client put it, "you accountants make me write down the
In a lawsuit filed by the Estate of Michael Jackson on behalf of his children, the plaintiffs' accounting expert had to forecast the lost earnings that resulted from his death. What factors would you have had to consider in reaching your opinion?
An international banana grower owns a large plantation in a Latin American country. Due to political upheaval in that country, the government of that country might expropriate land ownership for itself. The company has not adjusted the reported value of this land on its financial statements. Should
In a landmark U.S. Supreme Court case, Price Waterhouse, CPAs v. Hopkins, a senior accountant was denied a promotion to partner at a major CPA firm because, according to one evaluation, she needed to "walk more femininely, talk more femininely, dress more femininely, wear make-up, have her hair
A staff accountant with a large corporation wrote a book in which he proudly admits that, as tax deadlines approached, he "popped illegal amphetamines" and "frankly was stoned" when he was preparing the company's tax returns. He claims that his use of un-prescribed drugs enhanced his ability to get
Various disciplinary committees are considering whether the following three accountants committed discreditable acts: • The first accountant is an Enrolled Agent who deposited a client's tax refund check into her own account and spent it on a personal vacation to a tropical resort • The second
An unmarried, gay couple recently attempted to rent an apartment from a landlord who happens to be a CPA. The CPA told them that they would make "wonderful tenants," but she could not rent to them because of her "deep religious convictions." The prospective tenants sued the CPA, and the court held
The head of the accounting department at a mid-size corporation refuses to promote workers of Portuguese heritage with solid performance records because he does not believe that they "ever are management material." This same accountant also was videotaped destroying documents that had been
Your client is a gun manufacturer. Due to the tragic nature of gun violence, many citizens have threatened to protest against your client. However, your client's manufacturing plant is located in rural Montana, so protesters cannot conveniently get there to stage a public protest. In preparing an
Your tax advisory client is an active securities trader. She just told you she intends to spread a rumor that a Middle Eastern sheik is planning to buy a controlling interest in Technotrilogy stock. Your client believes that if she spreads this false rumor, the stock price will increase and she
You recently become a partner in a local CPA firm. Your firm provides a wide range of professional services, but your firm is best known in the business community for its expertise in loan workouts, debt restructuring, and bankruptcy accounting. The general public, including most of your family and
Under GAAP, contingent liabilities have to be accrued on a company's balance sheet if they are "probable and "can be reasonably estimated." During the course of performing a company's annual audit, you discovered facts that make it highly likely that a pending lawsuit against the company will be
You discovered material errors in your client's audited statements for prior years. The CPA firm that performed the audit was reckless, in your opinion. You would like to disclose this other firm's incompetence to the state board of accountancy and to the AICPA Professional Ethics Division. Your
A former client just sued you for malpractice. Fortunately, you have malpractice insurance, so the costs of defending this legal action and any possible costs of settlement or liability will be borne by the insurance company. According to your malpractice policy, you have a duty to "promptly
Toby, CPA is representing his client in a critical, time-sensitive negotiation. Toby had expected his client to attend a meeting with Dunbart, the opposing party, but Toby's client called him to say that he could not make the meeting due to a sudden illness. When Toby canceled the meeting at the
A 19-year-old staff member at your accounting firm went into your computer system and copied the names, addresses, and identifying numbers of clients who pay by your firm by credit card. As a result of this identity theft, your clients lost thousands of dollars. When you first hired this young
A manufacturing client hired you to prepare a property tax report. During the course of your discussions, the client told you that it made certain improvements to its production facilities without obtaining required construction permits. In valuing the client's property, you disclosed in your
Should there be an accountant-client privilege in every state? Discuss the pros and cons.
Your clients applied to the Portland Housing Authority to obtain a government-subsidized apartment and were approved. As part of the approval process, your clients submitted a statement of income and personal expenses. The Portland Housing Authority now has requested that the couple supply a copy
Injured workers have filed numerous workers' compensation claims against your audit client. In reviewing medical exams filed in connection with these claims, you noticed that one of these former employees has a life-threating disease. This disease can be cured by surgery, but the former employee
While you were at client's production facility, you noticed that factory personnel were taking hazardous chemicals and dumping them in a forest area behind the facility. Based on a microbiology class you took in college, you strongly suspect that these chemicals will seep into the groundwater and
Your former accounting professor recently contacted you because she knows that you currently work for an accounting firm that performs compilation services for several privately held mining companies. The professor requested data concerning whether your firm's clients capitalize or expense certain
Your client, a French pharmaceutical manufacturer, is about to release a blockbuster new drug that inhibits the growth of certain tumors. While auditing this company, you happened to overhear research scientists openly discussing with marketing personnel this drug's benefits and anticipated sales
The Commodities Futures Trading Commission, or CFTC, is a respected federal agency that oversees trades in futures contracts for commodities such as wheat and cotton. You have several clients in Iowa that hedge their production costs by trading futures contracts. The CFTC has asked you to
A CPA wants to entice a small cable television company to become a client. During the course of their discussions, the CPA mentioned that he is very familiar with the communications industry because his firm is the auditor for a well-known, publicly traded cable television company. Did the CPA
During the course of auditing a telecommunication hardware company, you learned a great deal about typical credit terms and profit margins in that industry. You now have been hired by a small supplier of component parts to the telecommunications industry. This supplier has asked you to prepare its
During the course of preparing budgeting projections in a consulting engagement, you learned that your client might be engaged in illegal price-fixing with its distributors and franchisees. The client is a closely held family-run corporation and you are not the client's auditor. Do you have a duty
Indicate if independence is required for an accountant to perform the following tasks: a. Render tax advice to a non-audit client b. Issue an audit opinion concerning a government-run airport c. Issue a review opinion concerning quarterly reports of a privately held company d. Make recommendations
In a lawsuit between a Bottomfisher Bank and Cellular Dynamico, a question has arisen whether Cellular Dynamico's bookkeeping staff routinely recorded a journal entry in the ordinary course of business at approximately the same time that the accounting event reflected in the journal entry occured.
After a fee dispute arose between a CPA firm and its client, the parties agreed to discuss their dispute confidentially with a retired federal judge in mediation. As of now, the parties have not managed to resolve their dispute. No lawsuits have been threatened or filed. Does the CPA firm still
Your audit client was thrilled with your audit team's efficiency and slightly wacky sense of humor. On the day that the client's audited statements were issued, the client's Controller invited all of you to "share some beer, catch some dinner, and watch a basketball game at a sport bar." The
When a member of your review client's accounting staff quit abruptly, you agreed to "help out" by preparing customer invoices and verifying shipping documents and warehouse receipts. Was your kindness a mistake?
A CPA firm audits a large international bank. The bank has agreed to give a home mortgage loan to a senior manager at the CPA firm. The senior manager has stated that she "does not have any affiliation" with the bank. What issues need to be resolved to determine if the CPA firm's independence is
Consider the following prose: I am ferocious, hear me roar My professional skepticism is tough to the core I may look like a pussycat, but I'm a lion on the inside, dude Who cares about appearances when you've got my attitude? Can an auditor satisfy the Independence Rule by having a tough
A CPA firm maintains its savings and checking accounts at Columbus Bank. The CPA firm also is negotiating to become this bank's auditor. Does the CPA firm meet the independence requirements to audit this bank?
A CPA audits a well-known New York bank and also uses a credit card issued by that bank. The CPA makes purchases using the credit card near the start of a month, but always pays her outstanding balance on time by the end of the month. Does she satisfy the independence standard to audit this bank?
You plan to issue an audit report next month. Your client still owes you $20,000 for performing last year's audit, and you do not expect to collect all of these fees by the expected issuance date of the current-year audit. You have offered to lower your fee for last year's services by 25%. Also,
Ratha Gupta is a sole practitioner CPA. Ratha has a profitable audit client that operates a chain of hospitals in Arizona. This client also owns 65% of a hematology testing laboratory in Mexico. This client has offered to allow Ratha to purchase a 2% stake in that testing laboratory for $80,000.
What steps would you recommend that the auditing profession take to minimize the impact of moral seduction?
Is an auditor allowed to own a direct interest in an audit client? Is ownership of an indirect interest permitted? What is the difference between direct and indirect interests?
When Ramin was growing up in a small suburb of Boston, he was best friends with his cousin Saureb. Both boys played soccer on the same school team. Their parents even held joint birthday parties for them because their birthdays were two days apart. Saureb's family moved away from the Boston area
Your college friend has always respected your financial acumen as a CPA. As a result, when your college friend formed his business in February, he asked you to serve on the company's Board of Directors. You gladly served on the Board of Directors for one month, without compensation, and then
Ryan and Darla are married. Darla is partner at Ernst and Notold, CPAs, where she serves as the lead engagement partner on the audit of Mortis Company. Darla does not own any stock in Mortis Company, but Ryan owns 1% of Mortis Company's preferred stock. Ryan's ownership of Mortis stock is not
A CPA firm has numerous partners, all of whom work out of the firm's sole office in New York City. Jeannie is the lead attest partner on the audit of Bell Bank, a small financial institution located in midtown Manhattan. The audit team is comprised of five professional staff members and two
Sterling, CPAs has offices in major cities throughout the United States. Julieanne, a partner at Sterling, has a brother named Hudson who recently accepted a position as CFO of Tivoli Gardens, Inc. The lead partner on the Tivoli Gardens engagement is located in the firm's Minneapolis, Minnesota
Bob is an accounting supervisor who works in Jimenco's tax department. Sharon is a partner at Delight, CPAs, and Delight, CPAs audits Jimenco. Recently, Bob asked Sharon if he could "make some extra cash" by preparing individual tax returns on weekends for Delight, CPA during tax busy season.
Eldridge Elderly retired from the active practice of public accounting last year. As part of his retirement, he received a buyout package from his former CPA firm that pays him $300,000 per year for 10 years. The payout is not contingent on firm profits and is guaranteed by a well-established
The lead attest partner, Lisha, on an audit engagement recently got married to Samid. a. If Lisha's husband is a sales representative for one of Lisha's attest clients, is her independence impaired? b. If Lisha's husband is promoted to become the client company's Chief Executive Officer, will
When you recently were dining at a restaurant, you asked your food server whether the seafood appetizer uses fresh, top-quality crab and shrimp, or whether you should just skip ordering an appetizer. The food server told you that the seafood appetizer was "decadently delicious and only used fresh
A CPA firm has been retained by a major corporation to analyze whether its bank overcharged it interest on a bank loan, in violation of Oregon usury laws which establish maximum interest rates. This same CPA firm has been retained by an Arkansas bank that has been accused by Arkansas state
In response to a new banking regulation, the consulting department of your CPA firm has been retained to determine the amounts that a bank client overcharged customers on their credit cards. A customer is entitled to either accept a refund equal to the amount calculated by the CPA firm or submit
Ryan and Kim are married and commute to and from work together each day. Ryan, a CPA, works in the Project Budgeting Department of Carson Company and his wife Kim works as an engineer in the company's Research and Development Department. Kim loves new challenges and cutting-edge technology. She
Your employer, Megan Manufacturing, has asked you to negotiate the sale of certain tangible fixed assets to a German company. When you were discussing this sale, Kyle, the German company's representative, mentioned that he was a huge fan of a German national soccer team. You also are a loyal fan of
You have a very outgoing personality and are extremely friendly with a staff member named Adelana. Adelana reports directly to you in the company's Billing Department. You are a CPA, but Adelana is not. The two of you are not dating and you would never even consider asking her out on a date.
A company pays bonuses to its production employees based on them achieving favorable standard cost variances.a. Does company management have a conflict of interest in setting these standard costs?b. Do the workers have a conflict of interest in setting these standard costs?c. How should standard
Dalbeck, a CPA, serves on the Alumni Admissions Committee of his alma mater. As part of his duties, he interviews and evaluates applicants for this prestigious college and ranks them on a scale of 1 to 10. If he gives an applicant a high ranking, the Alumni Admissions Committee reviews the
Great Deals on Earth, a chain of office supply stores, sells paper shredders. Its profit margin on paper shredders is $40. If a salesperson successfully sells a customer extended warranty coverage, the retailer collects an additional $35 fee for the warranty coverage. Whenever the extended warranty
A doctor has recommended that you have a CAT scan procedure to see if you suffered a concussion in a recent auto accident. The doctor has informed you that she wants you to get a CAT scan procedure performed at a clinic in which she is a "major, part-owner." She has assured you that "this is the
You have been retained to testify as a damages expert at a binding arbitration about the financial loss your client sustained when a supplier shipped it defective raw materials. Several days before the arbitration proceeding, you discovered that the arbitrator is a member of your country club who
During a period of cognitive overload, is it advisable, or not advisable, to make ethical decisions?
An Enrolled Agent serves private-sector clients in her professional practice located in Norfolk, Tennessee. Prior to working in the private sector, she worked as a sales tax auditor for the state of Tennessee. A client who has a state sales tax problem has asked her for advice about how and the
A large publicly traded company encourages its production-line employees to invest their tax-deferred retirement money in the company's own stock. The company believes that this creates an allegiance among company employees and gives them an incentive to diligently strive to improve the company's
You have prepared the tax return for a married couple for many years. This couple now has approached you with the question: "Should we file married filing jointly or married filing separately?" You like both spouses equally and do not have a preexisting social or personal relationship with either
When your clients need tax-sheltered life insurance coverage, you always recommend a particular insurance agent. This agent appreciates your referrals and frequently refers clients who need accounting services to you. You, in fact, have a formal referral agreement that compels you and this
X and Y are about to start an online ad placement service that they will conduct as a partnership. X is contributing substantially fewer tangible assets to the partnership than Y is contributing, but X's prominence in the business community and his business connections are vital to the success of
Mr. Bayfront has a listing to sell a townhouse. When sold, his commission will equal 3% of the selling price. These townhouses sell quickly when they are priced at $120,000, but it can take months of hard work for a realtor to find a buyer who is willing to pay $130,000. Your client, the owner, has
An insurance company issued a malpractice policy to an accountant. The malpractice policy covers the accountant's liability for negligence to clients, up to the maximum $1 million face amount of the policy. The insurance company also has to pay the accountant's legal fees in the event that a claim
Huang started a small CPA firm several decades ago when he immigrated to the United States. Now, he is the managing partner of the firm, which has grown to have 40 partners and over 90 professional staff members. One of Huang's clients is Taiwan Western Bank, located in northern California. Many of
A CPA became fascinated by the precious metals trading industry while auditing a client in that industry. A few years later, this CPA discontinued the practice of accounting and become an independent precious metals trader. Her former client was one of several major competitors in that industry.
A prospective client called Yavorsky, Nick, and Associates, a full-service accounting firm where you work, to obtain a quote for bookkeeping services. During your phone call, the client told you that he was "cash-poor, but had a rapidly growing business." You sensed that the client would not be
Before issuance, most corporate and governmental bonds receive a credit rating that usually ranges from a high of triple-A down to B-. Nearly all bond ratings are issued by one of three credit rating services-Moody's, Standard and Poor's, or Fitch. A bond issuer selects and pays one or more of
Varda operates a financial advisory firm that gives advice to small business owners. Varda prepared a loan amortization schedule that assisted Gupta in winning a court judgment against Nguyen for unpaid sums owed him. Now, Nguyen is being sued by another of his creditors. Even though Varda
"Sleazy" Slenoso, is a convicted ex-governor who has been indicted by a federal grand jury for running a Ponzi scheme that cost investors millions of dollars. As part of the government's allegations, Sleazy is accused of murdering angry investors. As a result, if Sleazy loses, a judge might impose
You and your client have agreed to jointly buy an apartment building. Your client respects your knowledge of real estate financing and has always looked to you for financial advice. Do you have a conflict of interest if your elderly father rents an apartment in that building?
You are the accountant for a very successful import brokerage business. Customer goodwill is its largest asset. The three co-owners wish to enter into a buy-sell agreement that will require the surviving co-owners to purchase a departed partner's ownership interest upon the departed partner's
Most of the employees at a factory are unrepresented by a union, but about 10% with specialized skills are unionized. All of the employees believe that their employer has not been abiding by state wage rules that govern overtime pay. The nonunion group and the unionized group jointly have asked you
What personality traits would you expect a whistleblower to typically possess? Do you have those traits?
What are the advantages of a setting up a whistleblower reporting system that allows individuals to report anonymously? Would a system in which people have to identify themselves be better in any respect?
When you were at the office late at night, you were shocked to see a colleague in the Government Contract Accounting Verification Department make derogatory remarks about a fellow employee's performance. Her comments included a racial slur. You informed the company's Board of Directors and filed an
As a junior staff accountant for a publicly-traded corporation, you were shocked when your department head told you to book January sales shipments as if they had occurred in December so the company could "make it rain" in the earlier year. You later learned that "rain" was a company code word for
A prospective new client literally walked up to your CPA firm's reception desk, and asked to speak with you. She proceeded to tell you about her "scummy" ex-boyfriend's under-the-table unreported cash income and requested your help in filing an IRS Whistleblower Claim. You reviewed the evidentiary
You filed a whistleblower complaint with the IRS. The IRS estimates that there is an 80% chance that it will be able to recover $3 million from the wrongdoer. The IRS also estimates that it will have to spend $500,000 in out-of-pocket attorney time fighting this wealthy, belligerent wrongdoer in
When an auditor performed an inventory count at a privately-owned medical supply company, it observed that some of the waste from radioactive isotopes produced at that facility three years appeared to have leaked into the surrounding soil. The auditor was concerned that these leaks might affect the
You are a young accounting staff member at Wackyo.com, a publicly traded company that recently had its Initial Public Offering. When the corporation recently "issued earnings guidance" for the upcoming quarter, you noticed that the company had assumed that sales would increase by 6%, and certain
Two employees at a large nonprofit organization recurrently have observed the Chief Recruiter for their company extend job offers to prospective employees who are members of the Chief Recruiter's ethnic group. Other, more deserving applicants routinely are rejected. The two observers both are
Matthew Moral, the CFO of Stargem, Inc., a listed New York Stock Exchange media company, faced a dilemma: Should he have certified the reliability of the company's financial statements in accordance with requirements imposed by the Sarbanes-Oxley Act, despite his deep-seated concern that the
Your buddy mentioned that she is thinking about suing under the qui tam law. You are not sure what that is. a. What is a qui tam provision? b. Can employees who do not work for the government sue under this provision?
The Code of Conduct in use at a well-known national tax preparation firm says that, if you are contacted by law enforcement, a governmental agency such as the IRS, SEC, or FBI; or the media about "actual or suspected improper or illegal activity of any kind by you or anyone connected with the
The Audit Committee of a publicly traded is comprised of three members. One of the members is a retired Chief Financial Officer of a global bank headquartered in New York. She has extensive experience in managerial finance. However, she is not a CPA and never has worked in accounting or auditing.
"Auditors, like a good set of car tires, need to be rotated every so often." a. Under what circumstances, if any, must a lead audit partner be rotated? b. Under what circumstances, if any, must a concurring audit partner be rotated? c. Under what circumstances, if any, must an entire audit firm be
PCAOB inspectors discovered that, in making proposals to potential audit clients, a large accounting firm used the following phrases: • Your auditor should be your partner in supporting and helping you achieve your goals. • We will help you achieve your desired outcome where our audit teams are
Joyce spent the last three months working as part of an engagement team that was auditing Vintage by Jessica, a fast-growing, publicly traded, high-fashion cosmetics company headquartered in the heart of Manhattan and Austin. One day after the client's financial statements were issued, Alison, the
A CFO and CEO potentially are subject to huge financial penalties if they incorrectly certify to the SEC that their company's internal controls function properly, and they do not. They similarly are subject to huge penalties if they certify that their company's financial statements fairly present

Showing 5700 - 5800 of 6229

First
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved