List the primary auditing guidelines for public sector auditing.
> What is the penalty provided under Code Section 6662 (b)(2)? Where in that Code section is that penalty defined? Explain the definition in your own words.
> Access the AICPA Professional Standards via Checkpoint, and click on By-laws. Under Section730, determine when can a member receive disciplinary action without a hearing?
> Locate the AICPA Professional Standards via Checkpoint, and click on Personal Financial Planning Services’ link. Locate Section 100 and provide four examples of PFP services
> Access the PCAOB website (www.pcaobus.org), and list two new or proposed auditing standards issued by the PCAOB
> Access the AICPA.org website and locate the ASB under auditing and attestation standards. Examine the approved highlights of the ASB. What were the last three auditing standards issued by the ASB?
> Under Treas. Reg. §1.6011-4, how is a reportable transaction described?
> Locate the Preparation, Compilation & Review Standards, and locate SSARS No. 21 to explain briefly the scope of this standard. Locate the Preparation, Compilation & Review Standards, and locate SSARS No. 21 to explain briefly the scope of this standard.
> After getting selected in Disney’s training program, Minsu became a rock star. His family paid $22,000 to get Minsu trained. How much of these expenses paid by his family are deductible? Reference the specific authority in the Code and regulations.
> Locate the Audit & Attest link and click on Clarified Statements on Auditing Standards, and determine the AU section number that discusses the forms of confirmations
> Access the International Federation of Accountants website (www.ifac.org/IAASB/), and briefly describe the following two International Auditing Standards: ISA 500 and ISA 505.
> On January 1, year 1, Melvin Corporation promises to “unconditionally” transfer a building that cost $100,000 (appraised recently at $300,000) to the Vivian Company on January 1, year 2 for a boat she bought for $250,000. As of December 31, year 2, Melv
> Joe Brock owns 10,000 of the 60,000 outstanding shares of Big Corporation; Leslie Ross own 20,000 shares; Mark Jones and his twin brother Sam each own 5,000 shares; and about 300 other shareholders own the remaining 20,000 shares—with no one other shareh
> Which of the following tax sources are considered primary authorities? a. Tax services b. Tax Court memorandum decisions c. Revenue Procedures d. IRS publications e. Temporary Treasury Regulations
> When is it appropriate to issue an adverse audit opinion? Cite the specific Professional Standard section used for your answer
> If you have access to the AICPA Professional Library database, attempt to complete the following practice exercises. (Note: You can also complete these exercises with a hard copy of the AICPA Professional Standards.) You have been requested by a potentia
> On January 1, year 1, the Allen Company issues 100,000 shares of its stock (which is valued at $10 per share) to acquire the Natie Company. The purchase agreement also states that Allen will pay $200,000 in year two if Natie has net income of at least $
> 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.
> 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.
> Identify and explain the five basic steps of the tax research process.
> 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
