Use strategic thinking to outline a recommended alternative for Franklin Raines to use in deciding the strategic direction of Fannie Mae. It is 1998 and you are about to take over as CEO of Fannie Mae. Use the two cases on Fannie Mae in the Course Documents (Fannie Mae A and Fannie Mae B abbreviated) for background on Fannie Mae. Exactly how should Franklin Raines proceeded in terms of strategy development what subsequent implementation steps should he have adopted. The Strategic Audit process should
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ACCOUNTING CHANGES AND ERROR ANALYSIS TRUE-FALSeConceptual Answer No. Description F 1. Change in accounting estimate. T 2. Errors in financial statements. F 3. Adoption of a new principle. T 4. Retrospective application of accounting principle. F 5. Reporting cumulative effect of change in principle. T 6. Disclosure requirements for a change in principle. T 7. Indirect effect of an accounting change. T 8. Retrospective application impracticality. F 9. Reporting changes in accounting estimates
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reconcile their financial statements prepared under home country standards to U.S. Generally Accepted Accounting Principles (GAAP). However‚ the SEC now permits foreign com68 F panies to use International Financial Reporting Standards (IFRS)‚ established by the Intemational Accounting Standards Board (IASB)‚ in lieu of the conversion of foreign financial statements to GAAP. On November 14. 2(X)8‚ the SEC released for comment a proposed road map for the adoption of IFRS that would monitor progress
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categories of GAAS with 10 standards known to date (Boynton & Johnson‚ p. 50‚ 2006). Elements of the Generally Accepted Auditing Standards (GAAS) The first category in GAAS is General Standards. Under this category‚ an auditor must: 1. Have acceptable training in the technical field. The competency of the auditor has three factors: (1) university education‚ (2) practical training and experience‚ and (3) continuing education throughout the auditor’s career. 2. An independence in mental attitude
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business accounting and auditing issues. The first thing to address is the SEC’s role or influence over Smackey Dog Foods. Since Smackey is private there is not a direct oversight or reporting role for the SEC. Indirectly‚ however‚ they help establish GAAP and have a role in how the books should be maintained‚ how the officers should conduct business‚ and how Keller CPA’s determine they can accept the engagement‚ ie their independence (sec.gov). My firm is sending Pete‚ Ben‚ and Maureen to visit the
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EPS Accounting Report: Development and Problems Earnings per share is the portion of a company’s profit allocated to each outstanding share of common stock. The computation of earnings per share is income minus preferred stock dividends divided by weighted average number of shares of common stock outstanding at the end of the period. Earning per share is considered to be the single most important metric to determine a company’s profitability which is crucial to the decision making of potential
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among available alternatives in business. Accounting has economic consequences because how an entity does its accounting (policy choices‚ estimates) can affect the wealth of different stakeholders. For example‚ you may be able to choose between two acceptable ways to account for an economic event. The choices may affect‚ for example‚ the amount of tax a company pays‚ bonuses managers receive or the price a business is sold for. Q1-5 Accounting information can provide insight into how much cash
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Financial Statements‚ advises Walgreen Co. valued 2011 inventories with the last-in‚ first-out (LIFO) cost method. Had Walgreen elected to use the first-in‚ first-out (FIFO) cost basis for the 2011 inventories would have been greater by $1‚587 million. GAAP permits companies to select which inventory accounting method they will use to report inventories (LIFO or FIFO). Companies must state the method selected in the financial statement notes. Most companies calculate the value for both methods and select
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Audit exam 1 Study online at quizlet.com/_flu67 1. A Which is usually included in an engagement letter? (A reference to GAAP/A reference to GAAS) A. Yes/Yes B. No/No C. Yes/No D. No/Yes 2. A Which of the following statements is true? A) Auditors have generally found that the most effective and efficient way to conduct an audit is to obtain some assurance for each class of transaction and for the ending balance of the related account. B) Management ’s assertions follow and
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DE PAUL UNIVERSITY SCHOOL OF ACCOUNTANCY AND MIS ACCOUNTING 640‚ ACCOUNTING THEORY AND POLICY FORMULATION SECTIONS 101 AND 103‚ 14 E JACKSON‚ RM 1327 AUTUMN QUARTER 2013 Instructor: R. Mark Alford‚ Ph.D.‚ C.P.A. Office: 6040 DePaul Center Office Phone: 312-362-5633 Email: ralford@depaul.edu Office Hours: Mondays from 11:00 a.m. to 1:30 p.m. and from 4:45 to 6:00 p.m.; I will be happy to make arrangements to meet with you at other times if the above is not convenient. Correspondence
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