Questions from General Accounting

Q: Paul Lewis is the quality review partner on the Richards & Co

Paul Lewis is the quality review partner on the Richards & Co. engagement. He was reviewing the workpapers prior to the December 31, 2015, annual audit when he came across transactions that caused him...

Q: In the 2007 case of Paul V. Anjoorian v. Arnold

In the 2007 case of Paul V. Anjoorian v. Arnold Kilberg & Co., Arnold Kilberg, and Pascarella & Trench, the Rhode Island Superior Court ruled that a shareholder can sue a company’s outside accounting...

Q: On December 13, 2012, Vertical Pharmaceuticals Inc. and an

On December 13, 2012, Vertical Pharmaceuticals Inc. and an affiliated company sued Deloitte & Touche LLP in New Jersey state court for alleged accountant malpractice, claiming the firm’s false accusat...

Q: Kay & Lee LLP was retained as the auditor for Holligan Industries

Kay & Lee LLP was retained as the auditor for Holligan Industries to audit the financial statements required by prospective banks as a prerequisite to extending a loan to the client. The auditor knows...

Q: In the discussion of loyalty in this chapter, a statement is

In the discussion of loyalty in this chapter, a statement is made that “your ethical obligation is to report what you have observed to your supervisor and let her take the appropriate action.” We poin...

Q: Kirsten had her dream job, combining her love of accounting with

Kirsten had her dream job, combining her love of accounting with traveling. She’d just had a big promotion to Director of International Accounting for Getaway Cruise Lines. As the director in the Hous...

Q: Con-way is a Delaware corporation headquartered in San Mateo,

Con-way is a Delaware corporation headquartered in San Mateo, California. It is an international freight transportation and logistics services company that conducts operations in a number of foreign j...

Q: Satyam Computer Services, now Mahindra Satyam, is an India-

Satyam Computer Services, now Mahindra Satyam, is an India-based global business and information technology services company that specializes in consulting, systems integration, and outsourcing soluti...

Q: Canada-based Nortel Networks was one of the largest telecommunications equipment

Canada-based Nortel Networks was one of the largest telecommunications equipment companies in the world prior to its filing for bankruptcy protection on January 14, 2009, in the United States, Canada,...

Q: Beazer Homes is a home-building company headquartered in Atlanta,

Beazer Homes is a home-building company headquartered in Atlanta, Georgia. Its stock is listed on the New York Stock Exchange. Beazer is required to file Form 10-Q and Form 10-K, as well as an 8-K for...