Economics

A corporate business enterprise is established under a specific legal framework where laws governing the operations and functioning of the enterprise are outlined. The activities of the enterprise are monitored and therefore such an enterprise is recognized by law. This is important due to the fact that legal suits can be filed by the enterprise within the provisions of the law.

(Louwers 583) By not recommending a restatement of the financial statements, Deloitte would be knowingly allowing the public to rely on information that is not accurate. Second, Deloitte should recommend the restatement to ensure that they are exercising due professional care, the lack of which could lead to lawsuit or penalty (which they eventually got).

To start with, upon learning of the error in estimation made by Ligand, Deloitte inherited the responsibility to recommend the correction of the previous year’s financial statements. This responsibility stems from two main facts. First, auditors are Certified Public Accountants and as such, have a responsibility to serve the best interests of the public. (Louwers 583) By not recommending a restatement of the financial statements, Deloitte would be knowingly allowing the public to rely on information that is not accurate. Second, Deloitte should recommend the restatement to ensure that they are exercising due professional care, the lack of which could lead to lawsuit or penalty (which they eventually got).

Upon reviewing your post, the insights I gain are the importance of companies following the rules and regulations enforced by The Securities and Exchange commission (SEC). In addition to the (SEC) financial accounting are also monitor by the Financial Accounting Standards Board (FASB) regulate the financial statements issued to shareholders. Zimmerman, J. L. (2014). I also realized the importance of companies making certain that the financial information posted, is accurate. By doing so, they help others such as stockholders and investors to make decisions that will be most beneficial to them.

The accounting restatement was unfortunate for Dollar General but I don't believe it will have had that big of an impact when they look back on it in the future. Their strategies allowed them to keep a profitable company thriving even despite the investigation

Watson enjoys playing golf at the country club. An 18-hole round generally takes him out of his office for about 4 hours of relaxation and exercise. He works hard during most of the week but likes to play on Wednesday afternoon to avoid the 3 patient visits per hour (at $30 per visit) he otherwise would have received. Since he is already a member of the club, he makes only a small out-of-pocket expenditure of $10 to the club each time he plays. [NB. all parts of this question combined count the same as one of the other questions.]

If a material accounting error is discovered, accounting standards require companies to restate their historical financial statements (FASB ASC 250-10-45-23)

P1 – Explain the effects of changes in the economic environment on a selected business.

Restatements can be helpful if they are used to explain honest mistakes. Misstatements cannot be used to cover up illegal accounting procedures. Shareholders will take notice and the end results can be devastating to a company’s business.

1b. What are the significant changes in the activities of the company that have occurred since last year?

1. Provide a brief description of the status of the company that led to its determination that a change was necessary. Three things led to the

Accounting restatement has been a hot subject for academic research since the recent high profile financial reporting failures. Much of the academic research on restatements has explored the causes and consequences of financial statement restatements (Kinney and McDaniel 1989; Dechow et al. 1996; Hribar and Jenkins 2004; Kinney et al. 2004; Palmrose et al. 2004; Desai et al. 2006; Karpoff et al. 2008; Plumlee and Yohn 2010; Schmidt and Wilkins 2011). This investigation is driven by the assumption that weak corporate governance partially explains financial reporting failures and accounting restatements (Abbott, Parker, and Peters 2004; Argawal and Chadha 2005; Srinivasan 2005). This paper extends the restatement literature by investigating

Economics are totally different to 'living within our means' and treating it like a household budget. The easiest way I've ever seen it explained is that if the government gave you £100 for free, you would take it and spend it. Let's say you bought a round of drinks and it cost £20. Of that £20 you would pay beer duty so the treasury would get back some of the money straight away. It's about 54p of a pint in duty. The rest of the cost of your round of drinks would go in part to the wages of the worker who served you. They would pay tax and NI. Other parts of the money would go to the brewery who also have staff and pay tax and NI. Both the bar and the brewery would have to pay business rates and tax. Profits made would increase from you

Procedures and organisational policies had to be amended to coincide with these new regulations also.The VAT changes also affected the business. Computer systems and calculations needed to be amended to ensure that the

2. Examination of financial statements and matching the  findings from analysis with events and movements within the industry; and