fall 2010 bule 402 accountant liability

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Click to edit Master subtitle style 2/6/11
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2/6/11 Accountants’ Liability “Over the past decade, accountants have been shocked at the large number of liability suits against members of their profession. Now, more than ever, accountants need to be aware of their potential legal liability.”
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2/6/11 Important Role Today, one of an accountant’s most important roles is to serve as an independent evaluator of financial statements issued by management to investors and creditors.
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2/6/11 Securities and Exchange Commission (SEC) www.sec.gov good source for info! Accounting and Financial Supporting Guidance
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2/6/11 Audits Conducting audits is a major role of accountants. In the audit process, the accountant verifies a sample of transactions. Verification is done in two ways: Vouching – beginning with a transaction in the books, trace
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2/6/11 GAAP/GAAS In performing her duties, an accountant must follow two sets of rules: (1) GAAP generally accepted accounting principles and (2) GAAS generally accepted auditing standards They contain broadly phrased
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2/6/11 IFRS International Financial Reporting Standards Replacement of GAAP? If mandatory, who would have to issue rule? What do you think?
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Opinions After an audit, the accountant issues an opinion. Unqualified Opinion – most favorable report; financial statement matches true condition. Qualified Opinion -- financial statement is generally accurate, but there is an unresolved issue. Adverse Opinion -- financial statement is
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This note was uploaded on 02/05/2011 for the course BULE 402 taught by Professor Shubin during the Fall '10 term at George Mason.

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