63022 BAD Professional Issues in Accounting Take-Home Exam Question 1
Fall, 2004
Directions: Answer each questions completely, but concisely. Answers should be typed and double-spaced. Be sure to answer what each question asks. Extraneous material included in your answers will reduce the grade for the question, as well as not answering the question adequately. In some cases, your opinion or a position on an issue is asked for, and thus there will be no absolutely right or wrong response, but whatever your opinion is or position you take, it must be adequately supported. Also, about 10% of the grade for each question is allocated to proper writing style, grammar, punctuation, and spelling. Question 1 (Due Monday, September 20th) 1.a. Is accounting a profession at the present time? Support your response by considering the typical attributes or characteristics possessed by other professions, and, if applicable, other attributers or characteristics that you believe accounting has or does not have that support your position. b. If you consider accounting to be a profession, is it a well-developed profession at this time comparable to other well-developed professions? If you do not consider accounting to be a profession today, what are its prospects for becoming a profession?
BAD 63022 Professional Issues in Accounting Take-Home Exam Questions 2 & 3
Fall, 2004
Directions: Answer each questions completely, but concisely. Answers should be typed and double-spaced. Be sure to answer what each question asks. Extraneous material included in your answers will reduce the grade for the question, as well as not answering the question adequately. In some cases, your opinion or a position on an issue is asked for, and thus there will be no absolutely right or wrong response, but whatever your opinion is or position you take, it must be adequately supported. Also, about 10% of the grade for each question is allocated to proper writing style, grammar, punctuation, and spelling. Questions 2 & 3 (Due Monday, October 11th) 2.a. Briefly trace (explain) how (i) the setting of accounting standards (GAAP) and (ii) the practice of public accounting (auditing), have been regulated since the inception of public accounting in the U.S. around the beginning of the 20th century. b. Explain what challenges/problems the public accounting profession is facing today in (i) the setting of accounting standards (GAAP) and (ii) the practice of public accounting (auditing), and why these challenges/problems have occurred. 3. Dr. Brown will provide you with this question at class on Monday evening, October 4th. Begin your answer to Question 3 on a new page since Question 3 will be graded by Dr. Brown while Question 2 will be graded by Dr. Fetyko.
BAD 63022 Professional Issues in Accounting Take-Home Exam Questions 4 & 5
Fall, 2004
Directions: Answer each questions completely, but concisely. Answers should be typed and double-spaced. Be sure to answer what each question asks. Extraneous material included in your answers will reduce the grade for the question, as well as not answering the question adequately. In some cases, your opinion or a position on an issue is asked for, and thus there will be no absolutely right or wrong response, but whatever your opinion is or position you take, it must be adequately supported. Also, about 10% of the grade for each question is allocated to proper writing style, grammar, punctuation, and spelling. Questions 4 & 5 (Due Monday, November 1st) NOTE: Answer either Question, 4.a. or Question 4.b.; if you should answer both, only the first will be graded. 4.a. (1) What does "quality of earnings" mean? What does "earnings management" mean? Explain the relationship between "quality of earnings" and "earnings management." (2) What does "quality of reporting" financial mean? What does "transparent financial reporting mean? Explain the relationship between "quality of financial reporting" and "transparent financial reporting. (3) Why are various parties--investors, creditors, regulators, public accountants, companies, bankers, financial analysts, management and financial officers, etc.-- dissatisfied with the current state of financial reporting? 4.b. (1) What are "detailed or rules-based" accounting standards? What are "concepts- or principles-based" accounting standards? (2) Why have accounting standards generally been "detailed or rules-based" ever since accounting standards began to be promulgated by the accounting profession in 1939? (3) What are the perceived advantages of "concepts- or principles-based" accounting standards? What concerns are there about moving to "concepts- or principles-based accounting standards? (Question 5 is presented on the next page)
5. Several criticisms have been made of the current financial reporting system. Also, some proposals have been made for improving the financial reporting system. Explain how one of the following proposals or sets of recommendations would improve the financial reporting system: (a) Recommendations of the Special Committee on Financial Reporting (Jenkins Committee) (b) Three-Tier Model of Corporate Transparency (DiPiazza & Eccles) (c) Enhanced Business Reporting (Special Committee on Enhanced Business Reporting --AICPA) In your explanation, (1) identify the weaknesses or problems with the current financial reporting system that the proposal or set of recommendations attempts to correct, (2) indicate how the proposal would correct these weaknesses or problems, including any improvements in global as well as domestic financial reporting, and (3) express your opinion on the likelihood that the proposal will become a reality in part or in whole. ------------------------------------------------------------------------------------------------------------------BAD 63022 Professional Issues in Accounting Take-Home Exam Question 6 (Due Monday, November 15th) Dr. Brown will provide you with Question 6 at class on Monday evening, November 1st. Fall, 2004
BAD 63022 Professional Issues in Accounting Take...