Individual members of the board would accept primary responsibility for financial oversight. This is perhaps the least expensive internal control. Smaller charities could attempt to recruit professional from the financial industry‚ such as local CPA societies‚ public accounting firms and banks. These financial professionals may be willing to volunteer on the audit committee to increase their visibility within the community. Audit committees for larger nonprofits‚ such as the United Way‚ could
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SOLUTIONS FOR REVIEW CHECKPOINTS 1.1 Business risk is the collective risk faced by a company that engages in business. It encompasses all threats to and organization’s goals and objectives. It includes the chance that customers will buy from competitors‚ that product lines will become obsolete‚ that taxes will increase‚ that government contracts will be lost‚ or that employees will go on strike. 1.2 The conditions of complexity‚ remoteness‚ time-sensitivity‚ and consequences increase demands
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obtain my BA in Business to become an accountant and ultimately “sit” for the California CPA exam. That said‚ let me assign probability factors to the following complex careers: For the staff accountant‚ I set the probability at 90%. I plan to graduate and get an accounting job. The probability of me continuing my training to acquire my CPA is also 90%. I plan to work and gain experience while I study for the CPA exam. Finally‚ to acquire my MBA while working is a 50-50 (50%) chance at this point
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for extending an auditors duty to disclose beyond cases where the auditor is giving or has given some representation or certification and the silence and inaction of the defendants auditors did not make them culpable. The court ’s reasoning that the CPA did not have to disclose was because the auditors had issued no public opinion‚ rendered no certification and in no way invited the public to rely on their financial judgment there was no special relationship that imposed a duty of disclosure (Cashell
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CASE STUDY – UNIT 1 1. Andrew Fastow is a key person responsible for the downfall of Enron. When he became the CFO in 1998‚ he came up with the plan to make the company appear in great shape by using the mark-to-market accounting practice. The company would build an asset‚ such as a power plant‚ and immediately claim the projected profit on its books‚ even though it hadn’t made one dime from it. If the revenue from the power plant was less than the projected amount‚ instead of taking the loss‚ the
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an auditor gathers unprejudiced evidence regarding the reliability and integrity of financial statements‚ compliance‚ and operational information provided by an organization. Audits can be performed by different people. Independent auditors‚ such as CPAs‚ and governmental auditors‚ or employees working for federal‚ state‚ or local government entities. There are different types of auditors who are not directly employed by the organization being audited. Internal auditors‚ however‚ are employed by the
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that they audit. For example‚ auditors may install system software but it is a good idea not to do the taxes of a client. Integrity and objectivity is a rule that pertains to both practicing and non-practicing CPAs. Becoming a CPA comes with many responsibilities and expectations. CPAs should never conduct misleading statements rather they are the CFO or auditor. Auditors are to keep all information they obtain during the audit confidential. Audits would not work properly without the client’s
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Guide CPA is a project analysis and planning technique that identifies the individual tasks of a project‚ places them in the correct sequence and allows for identification of the critical path In order to construct a CPA‚ you need: 1. List of all the activities required to complete the project 2. The time (duration) that each activity will take to completion 3. The dependencies between the activities (e.g.: activity D cannot be completed until activity B&C are done) CPA calculates…
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Theresa Golding BA 418 – Auditing Dr. Charles Pineno April 25‚ 2010 PART 1: “Small Firms May Face Audit Music” (published in The Wall Street Journal on April 19‚ 2007) addresses the ending of the delay in applying portions of the Sarbanes-Oxley Act of 2002 to smaller companies. At the time of the article‚ some 6‚000 smaller public companies had yet to be required to “make an annual assessment of their internal financial-reporting controls with further review by the company’s outside auditor of
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3 Account Accounts Receivable Accounts Receivable Total Ahmadrand‚ Ela Andrews Productions Invoice Accounts Receivable 12/31/2012 Total Andrews Productions Clark‚ Binsley‚ and Basil‚ CPA Invoice 12/31/2012 Invoice 01/05/2013 5 Accounts Receivable Accounts Receivable Total Clark‚ Binsley‚ and Basil‚ CPA Creative Products Invoice 12/31/2012 Accounts Receivable Total Creative Products Design Creations Invoice 12/31/2012 Accounts Receivable Total Design Creations Duncan‚ Jones‚ and Cline
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