Anne really did not go into too much detail about any

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Mrs. Anne really did not go into too much detail about any financial accounting issue that the firm is facing at the present time but I am sure that have had to face some issues when they first started their firm. When I asked Mrs. Anne about issues facing the accounting profession, she stated that internal control and fraud are the two important issues. Fraud is one of the issues that accountants and businesses are facing in general manly because of what happened with Enron and WorldCom. If another major accounting scandal does happen it could hurt the profession as a whole and could cause people to lose faith in the ethical standards of all accountants. Internal control is like what we learned in principle accounting and the earlier chapters in our text book. Internal control everywhere if you are preparing a income statement or a tax return they should be reviewed then submitted to the client and the more complex the problems the more people should be working on it to make sure it gets done right with no errors. Mrs. Anne was not too sure on how long the transition from a rules based system to a principle based one. She thinks that at best it would take 5 years to complete may be longer it all depends on how people react to the new rules being proposed. During her time in school about 6 years ago she heard nothing about IRFS until she retook an auditing class and heard just a small blurb about it and the proposed change to the principle based system. We have been learning about IRFS and the differences between it and GAAP some are small while others can be more complex. One of the major differences it valuing inventory at net realizable value, which is different than GAAP and its historical cost standard. When the value of inventory is lower than the historical cost then you most write down the inventory to its net realizable value under IRFS.
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The major challenge of switching to IRFS is allowing enough time for people to get understand the new rules and be able to work with it. If accountants don’t have the right amount of time to switch to
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