Study Unit 2 Questions

I agree with you in your position because I too believe the CPA does not have to advise Ahi on its plan to earn interest on their $100,000,000 tax liability to the IRS by mailing the check from the U.S. Virgin Islands to create a float. Article seven, scope and nature of services, of the AICPA Code of Professional Conduct sates that the CPA should observe the principles of the Code in determining the scope and nature of services provided (Colson, 2004). Ahi employee’s plan is not part of the CPA competencies in regards to taxation; the activity does not seem to be consistent with the CPA’s role. This plan should have probably been discussed within the finance or accounting department in Ahi Corporation.

One of the advantages to being a CPA within a large firm is that you have the opportunity to work in many areas of accounting for many varied company clients. This will give me a multifaceted experience level not easily obtained while working independently or for a smaller firm. I hope to have the opportunity to do some forensic accounting work where I would prove suspected embezzlement within a client’s company (S. Westfield, personal interview, August 1, 2008).

“The Canadian Institute of Chartered Accountants ("CICA") Handbook requires that the accountant has sufficient knowledge of the business to make intelligent inquiries.” The CICA concluded that “the applicable standard of care required the defendant to make inquiries of management regarding the plausibility of the plaintiff's stated retail sales tax liability.” Meaning the defendant

21.Boutique Corporation would like to change its corporate status to avoid income taxes at the corporate level. To

B.should put this money in the trust account because it belongs to the client until it is earned.

VI. Guide clients in the gathering of information such as bank account records, income tax returns, life and disability insurance records, pension plan information, and wills.

A CPA firm can prevent this type of behavior by talking to their client and explaining to them that they are not allowed to use their reports as selling features. They need to explain to their clients what these reports are for, and what their used for.

b. With blemishes on the accounting profession the size of the Enron, Worldcom, and Freddie Mac scandals, among many others, who wouldn’t think that accountants were all ‘crooked’

Describe Keller CPAs’ responsibilities related to communications regarding internal control matters. What internal controls issues do you identify?

Tax return and other tax related identity theft is a growing problem that CPAs can help their clients with. The IRS is trying to combat the fraud from their number one worst problem even though the proposed ways are extremely ambitious for many smaller businesses to comply with. Currently the IRS just doesn’t have enough resources to help thwart this problem, which is why it is up to CPAs to help inform their clients about the growing problem. CPAs can help their clients to take preventative actions and corrective actions after theft has happened.

. (TCO 2) Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year. The partnership did not make any distributions, and the corporation did not pay any dividends. How much income must Barry report from these businesses? (Points : 2)

6. When a CPA firm has two audit clients that transact business with each other should the two audit teams be allowed to share information regarding their clients?

In addition if an auditor requires any interpretations of the documents the client must assist the auditor in attaining the needed understanding of the records.

Imagine trusting your hard-earned money like your retirement savings to a financial adviser or Certified Public Accountants (CPA) only to lose it all in a fraudulent Ponzi scheme. In today’s world of business many organizations, financial planners and accountants are in the news due to the financial ethical breaches that have affected their customers, employees, and the general public. A CPA has to be responsible for their audits and take any punishments as a result of their mistakes, incompetence or illegal actions. CPAs are expected to have integrity in their work,

What draws me into the field of accountancy? Why do I want to launch a career as a certified public accountant (CPA)? What is there about numbers, spreadsheets, profit and loss statements, audits, inventory and fiduciary responsibility that appeal me? In this paper I will describe in detail the reasons why I am attracted to this field. Also, what are the duties and responsibilities of a CPA? How available are job openings for a person with the education and experience to work as a CPA? How well to companies compensate those hired as CPAs? These questions and issues will be thoroughly reviewed in this paper.