Identify and explain the five basic steps of the tax research process.
> The Builtwell Construction Company is building a hospital for a third party. As such it borrows substantial funds from a foreign bank and repays the required interest costs as scheduled. Builtwell also incurs some foreign currency truncation gains and l
> Provide two examples of a business/due diligence investigation.
> Identify the basic steps of a fraud examination
> What are some risk factors associated with management fraud and employee fraud?
> Differentiate between management fraud and employee fraud.
> What is a risk factor or red flag?
> Bo Broker Company charges a fee for bringing together the Acme Construction Company and the First Bank Company. The parties agree that Bo earns her fee when Acme and First “agree” to the terms of the construction mortgage. However, Bo can receive four
> What are the three components of the fraud triangle? Of what concern are they to the fraud examiner?
> Define forensic accounting.
> Describe three computerized tools used by the fraud examiner/investigator.
> Describe four examples of fraud engagements.
> What are some of the complexities in international practice?
> How will you remain current on authoritative accounting standards?
> What is the purpose of a research memorandum?
> How might one determine accounting alternatives?
> What is the three-part approach used to identify the problem or precise issue?
> What skills are needed for professional practice and the CPA exam?
> On January 1, the Chin Company agreed to purchase all of Jack Jackson’s interest in the company for $30 per share. Jack, who owns 15%—and a controlling interest of Chin—previously threatened to engage in a hostile takeover attempt of Chin. For the last
> What is the focus of accounting, auditing, and tax research?
> What is the PCAOB? What standards does it issue?
> Discuss the difference in “must” and “should” in complying with ASB standards.
> Discuss the relationship between Statements on Auditing Standards (SAS) and auditing interpretations.
> What guidelines exist for the performance of accounting and review services?
> Differentiate between auditing standards and attestation standards.
> Identify three other attest services in addition to the normal financial statement audit.
> What authoritative body exists as to the development of international auditing standards?
> What guidelines are available for the accountant in serving the needs of the nonpublic client?
> What authoritative auditing literature that has general applicability in practice is considered primary authoritative support?
> Lowland Appliance Stores offers customers purchasing its appliances separately priced (extended) warranties. Lowland services these extended warranties. Its customers can receive no refunds for not using these warranties, and, of course, Lowland must ho
> Define professional skepticism, and explain its importance in an audit.
> How may accounting or auditing research aid the practitioner in complying with the Accounting Principles Rule of the Code of Professional Conduct?
> Explain the significance of the Accounting Principles Rule of the AICPA Code of Professional Conduct.
> Explain the importance of the Code of Professional Conduct in the performance of an audit.
> List the primary auditing guidelines for public sector auditing.
> State the objective of the Single Audit Act. When is this act applicable?
> Explain the 3 categories of professional responsibilities that the PCAOB requires for an auditor of a public company.
> What is an assurance service engagement?
> Identify the sources that are published in the IRB.
> What does it mean when the IRS announces a nonacquiescence?
> A new client for your firm is Sam Jones who is preparing personal financial statements for a bank loan. Mr. Jones is attempting to list his social security benefits to be received based on his future life expectancy as an asset on his financial statemen
> Clarify the meaning of the term precedent for tax research.
> Find the NAICS code for the property and casualty insurance business.
> Compare or contrast the work completed for tax compliance and tax litigation.
> Discuss typical challenges in tax research.
> Discuss how professional tax work is changing.
> Go to your library’s website. Find the library’s location of one AICPA’s reference books. If your library does not have it, suggest where you should go to view this important research tool and explain the book’s location within the library.
> Diagram the court hierarchy, identifying the three courts of original jurisdiction on the bottom, the two different courts in the middle, and the ultimate court on top.
> Compare and contrast regular Tax Court decisions with Tax Court memorandum decisions.
> Explain when a tax adviser would encourage a client to go to federal district court, rather than Tax Court.
> The City of Mall uses a June 30th year-end. On March 1, the City hired Frank Sears as its City Manager at an annual salary of $100,000. Frank—like all other employees—earns 12 vacation days per year for the first 10 years with the City. Thereafter, he e
> What are the advantages and disadvantages of using a new emerging legal database?
> What does the Nexis Uni™ database include and how does it compare to the Lexis Advance® database?
> Identify what types of cases are provided in AFTR and USTC.
> Besides Revenue Rulings and Revenue Procedures, identify two other administrative sources from the IRS.
> What does the Guidestar database provide?
> Explain how one might conduct international business research.
> When would a researcher use ABI/lnform Business Source Premier?
> How is Hoover’s Online distinguishable from other databases providing corporate information?
> When would one use the Factiva database?
> Identify the primary goal(s) for tax research.
> The Oakland County Hospital performs lots of work for Medicare and Medicaid patients. This results in both reimbursement of certain operating costs and some profit. “Transfers” among related subsidiaries within the Hospital also contain some Medicare an
> What especially valuable information has the Thomson ONE database historically included?
> When would a researcher use Mergent Online?
> What are the advantages of using S&P Capital IQ?
> Explain the differences among tax evasion, tax avoidance, and abusive tax avoidance.
> Apply your knowledge of tax law to other areas of the United States Code, given that sometimes an accountant might need to access other parts of the United States law: a. 15 U.S.C., chapter 2B, section 78j-1(b)(1) b. 26 U.S.C., subtitle f, chapter 73,
> Identify the topic of the following Treasury Regulations, Revenue Rulings or Revenue Procedures: a. 26 C.F.R. sec. 601.601(d)(2)(iii). b. Reg. § 301.6333-1 c. 26 CFR Part 514.5 d. Treas. Reg. 1.482-7(b)(1)(iii). e. 1.956-1T(e)(5). f. Rev. Proc. 89–
> Discuss the topic of the following federal tax forms: a. 990 b. 1040A c. 1065 d. 1099-OID e. 1120EZ f. Schedule SE g. Form W-2
> List the following topics for IRS Publications a. Pub 15 b. Pub 225 c. Pub 504 d. Pub 535 e. Pub 901 f. Pub 925 g. Pub 946
> List the major Code sections for the following topics: a. Estate taxes b. Capital gains c. Stock dividends d. Business energy credits e. Passive losses f. Depreciation g. Substantial understatement penalty
> Identify the general content and topic of each of the following subchapters and parts of the Code: a. Subtitle A b. Subtitle A, Chapter 2 c. Subtitle A, Chapter 1, Subchapter C d. Subtitle A, Chapter 1, Subchapter K, part 1 e. Subtitle A, Chapter 1,
> Mount Pleasant Epilepsy Association is a not-for-profit agency. Joseph Howard is the Chair of its Voluntary Board of Director. He is also the owner of Howard Insurance Company. The Association rents its facilities from Howard Insurance Company. The Compa
> Identify the general content and topic of each of the following Internal Revenue Code sections: a. §62(a)(2) b. §162(e)(4) c. §262(b) d. §482 e. §501(c)(7) f. §751(a)(flush language) g. §6702(a)
> Access the U.S. Department of Justice website, and briefly explain the characteristics of identity theft. Give two examples of ways to commit identify theft.
> Midwest Realty, Inc. is a regional real estate firm. Andrea Midwest incorporated the firm 11 years ago. She is the founder, president, and the majority stockholder. Recently, Midwest decided to expand her successful local real estate firm into a regional
> Major research problem 1: An audit partner of a CPA firm invested in a computer side business with a member of the board of directors of a public company that sells insurance and is an audit client of that CPA firm. Identify any potential problems. Condu
> Describe and assess the effectiveness of the FASB’s disclosure project. Identify and Explain what areas of accounting were effected by the project. Assess whether there are other areas that the Disclosure project should study and explain why
> Identify competitor companies to Sony Music and how they rank. Identify your sources.
> Locate SEC Accounting and Auditing Enforcement Release No. 3834. Write at least two paragraphs explaining what that SEC release discussed.
> You are performing the audit of XCO, a public company. Bubba Smith, the inventor who founded XCO is still the majority shareholder. Bubba and his two daughters comprise the majority of senior management for the company and hold three of the seven seats o
> Examine 17 CFR part 229.306, and explain the legal requirements for an audit committee. (Hint: Either use a legal database or search Title 17 of the Code of Federal Regulations.)
> Utilizing the AICPA.org website, conduct research to answer the following questions: a. In addition to completing the audit of Jack’s Manufacturing, Inc. for the coming year, your firm has been requested to review the interim financial statements for the
> On April 15, the City of Old Putz invests its “available” excess cash with an investment broker. The investment broker then purchases 90-day commercial paper from a set of “blue chip” companies. On June 30, the last day of the City’s fiscal year, the Cit
> Utilizing Figure 2-3 from chapter 2, identify the eight elements for the following: A prospective client has requested a report on the reliability of its electronic commerce activities on the Internet. You are trying to decide the type of assurance servi
> You loaned your roommate$4,500 for next semester’s tuition. Your roommate promised to pay you back next summer from his summer employment. However, next summer, you realized that your roommate never found a job but vacationed all summer in Europe. He e-m
> Research what are the top ten major federal tax expenditures. Hint: For 2016, you can go to the Taxpayer Advocate Service Annual Report to Congress and find a table with the estimated cost of providing that tax benefit.
> Central Michigan Medical Association (CMMA) is planning on hiring a new cardiologist who currently lives in Dallas, Texas. The cardiologist owns a home in Dallas. Due to the depressed housing market, he would incur a loss of $80,000 if it were sold. For
> Find the Code section that explains the amount of the penalty for failure to include reportable transaction information with the return. How much is that penalty.
> What were the issue(s) involved in Brinks Gilson & Leone, T.C. Memo 2016-20? What was the court’s holding in this case?
> Use a tax research database and answer the following questions. Then repeat answering the problem using either a different tax research database or an Internet search, and compare their ease of use and success in finding relevant sources for a comprehens
> Assume that your older sister agrees to tutor you for a month in math. She normally charges clients $500 for similar services. In return, you agree to write a brief memo explaining the tax consequences to both you and your sister. You would normally char
> Assume that your best friend has a full scholarship offer for playing football at the University of Colorado at Boulder. The scholarship covers tuition, dorm room, and meal costs at the university. Write a brief memo explaining the tax consequences of th
> Assume that the taxpayer has a tax issue in which the only authorities on point are the following:(a) an article written by a famous tax lawyer that supports taxpayer’s position and (b) a Revenue Ruling that does not support taxpayer’s position. What doe
> On January 1, the Hawaii Cancer Institute has received a promise from the Obama Foundation to receive a building that the Foundation recently appraised at $200,000—but cost it only $125,000. The Institute promised to keep the building “permanently restr
> Locate Revenue Procedures 2016-11 and 2017-3, identify the topics, and find the dates of these revenue procedures. What arethe3-5mostapplicableCodesectionsforeachone? What IRS tax forms (if any) address the same topics?
> Locate Revenue Rulings 2016-15 and 2017-2, identify the topics, and find the dates of the Revenue Ruling. What are the applicable Code sections for each revenue ruling? Give the proper citations for these revenue rulings in the Internal Revenue Bulletin.
> What tax case by the Supreme Court recognized same-sex marriage?
> Use a tax research database to answer the following questions: a. Paraphrase Code Section 61(a)(4). b. Identify the topic of Code Section 166(d). c. Find the precise authority within the Code section that defines net long-term capital gains. d. Find th
> Find and read a Tax Court regular decision that discusses whether hair transplants are deductible medical expenses. Give the official citation to the case. What did the Tax Court hold? If a case with similar facts were decided today, would the Tax Court
> Which Treasury Regulation provides rules for foreign-owned U.S. corporations and foreign corporations engaged in a trade or business within the United States (reporting corporations)? What IRS form is a reporting corporation required to file that relates
