Accounting

663 WordsDec 1, 20133 Pages
Accounting Cases STEPS Identify my role * Auditor: Makes sure the financials are represented “fairly”. Fair to whom. Concerned with Fair Representation. Public company: Not sure who your users are: so you use GAAP so ensure ppl are using the same thing. Who do I work for? Companies? No, but the users. * Advisor: Advisor to seller or buyer? Or lawsuit. * In the Company (CFO, CEO). I work for the company. Example: A company is in poor shape is trying to get a loan. Auditor: Worried about Earnings Management Advisor for company: Make things look as good as possible In the Company: Make things look as good as possible Leads to bias Report Requirement * To whom am I writing? I’m writing a…show more content…
Put a star next to requirements and copy it down* : she asks you to determine if they comply with IFRS and to proide both she and Rusty with a report on your findings. They put constraint items: Rusty must be CEO, so that you cant argue against him becoming CEO. When you see data, what do you do? Its used in conjunction with issues. Return on average equite >20%: You gotta calculate if they reached it. Go on with Notes * Does this go with the overview (big picture) or does it present an issue? Does it describe the big picture more or the issues more. * Rusty doesn’t use spreadsheets, but does things on paper: Reference this paragraph to Report Requirements. * Employees have to work overtime: over 300hrs. Reference to Risks of Operations. * Company has an agreement with private company. Issues with agreement. Reference it to 2nd requirement Tips * Have to read the case entirely before writing * If you dun know what to do, dun panic ------------------------------------------------- Role: Advisor Report requirement: Determine compliance with IFRS Strengths + Weaknesses Environment NOB: Funeral home Strong local presence Going to be sold Private ASPE or IFRS? (Trick question: IFRS) User needs Rusty and Pearl What do they need to know? Need to follow IFRS Need to meet 20% Average Income over Equity Issues IFRS Issue Str + Weaknesses * - * - * - Ex.
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