Questions from General Accounting

Q: It’s impossible! There is no justification for ignoring these entries.”

It’s impossible! There is no justification for ignoring these entries.” These are the words spoken by Jackie Bauman at a meeting with the CFO of the company, Glen Donner. Cumberland Lumber is a region...

Q: After the news broke about the frauds at Enron and WorldCom in

After the news broke about the frauds at Enron and WorldCom in the United States, there were those in Europe who used the occasion to beat the drum: “Our principles-based approach to accounting standa...

Q: The artificial tax shelter arrangements developed by KPMG LLP for wealthy clients

The artificial tax shelter arrangements developed by KPMG LLP for wealthy clients that led to the settlement of a legal action with the Department of Treasury and the Internal Revenue Service. On Augu...

Q: On March 4, 2009, the SEC reached an agreement with

On March 4, 2009, the SEC reached an agreement with Krispy Kreme Doughnuts, Inc., and issued a cease-and-desist order to settle charges that the company fraudulently inflated or otherwise misrepresent...

Q: Denise Norris is a manager at Fitch & Jones, LLP,

Denise Norris is a manager at Fitch & Jones, LLP, a regional audit firm in Providence, Rhode Island. Norris is preparing for a meeting with Alan Morse, the controller of Rhody Electronics, a publicly...

Q: On July 24, 2009, the U.S. Court

On July 24, 2009, the U.S. Court of Appeals for the District of Columbia upheld the finding of the SEC that Gregory M. Dearlove, a certified public accountant and formerly a partner with the accountin...

Q: Assume that a corporate officer or other executive asks you, as

Assume that a corporate officer or other executive asks you, as the accountant for the company, to omit or leave out certain financial figures from the balance sheet that may paint the business in a b...

Q: The U.S. Court of Appeals for the Fourth Circuit

The U.S. Court of Appeals for the Fourth Circuit affirmed the lower court ruling in the case Public Employees’ Retirement Association of Colorado; Generic Trading of Philadelphia, LLC v. Deloitte & To...

Q: South City Electronics is involved in printed circuit board assembly (PCBA

South City Electronics is involved in printed circuit board assembly (PCBA) dealing with the assembly of complex electronic system processes. The electronics company, based in the city of South San Fr...

Q: HFS Incorporated (HFS) was principally a controller of franchise brand

HFS Incorporated (HFS) was principally a controller of franchise brand names in the hotel, real estate brokerage, and car rental businesses, including Avis, Ramada Inn, Days Inn, and Century 21. Comp-...