group 1 answers

group 1 answers - accountant would under the circumstances....

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25 October, 2010 Group 1: Alexander Hayford Mary Krappweis Thang Hang Alicia Crittendon Tam Chau Honghui Sun Group Work Assignment 1. A mirror image process in which an accountant chooses a transaction listed in the company’s books and check backwards to make sure that there are original data to support it. a. Having a bill for purchase of copy paper, then going to receiving to make sure order came in. b. Bank reconciliations. 2. We would need to correct any major misstatement or violation of GAAP that is pointed out by the auditor. 3. The company would have to cease trading in stock and would not be able to borrow money. Ultimately, we would have to hand over all our books to the proper authorities and seek legal consult as soon as possible. 4. Client must prove that: a. The accountant breached his duty to his client by failing to exercise the degree of skill and competence that an ordinarily prudent
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Unformatted text preview: accountant would under the circumstances. ( There can still be negligence if accountant follows GAAP and GAAS.) b. The accountants violation of duty caused harm to the client. 5. It is the responsibility of the SEC to: interpret federal securities laws issue new rules and amend existing rules; oversee the inspection of securities firms, brokers, investment advisers, and ratings agencies; oversee private regulatory organizations in the securities, accounting, and auditing fields; and coordinate U.S. securities regulation with federal, state, and foreign authorities. 6. If a decision does not have a rational business purpose, the managers are liable and the decision can be rescinded. If a court decides that there is a rational business purpose, both the manager and the decision are protected....
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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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group 1 answers - accountant would under the circumstances....

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