Running head: SARBANES-OXLEY
The Sarbanes-Oxley Act of 2002 (SOX)
In July of 2002 Congress passed The Sarbanes-Oxley Act (SOX), officially named the Public
Company Accounting Reform and Investor Protection Act of 2002, with the mai
Group 1 criteria
1. Transfer of ownership?
2. Purchase option likely to be exercised?
3. Leases term major part of economic life
The lease term is 90% of economic life
4. Present value substantial part of fair value?
The present value of the lease payment
Chapter 4 Question 9
9. How is an impairment loss on property, plant and equipment determined and measured under
IFRS? How does this differ from U.S. GAAP?
Under IFRS an impairment loss is determined when the carrying amount exceeds its
1. Auditors will test controls to make sure there is not any holes within the control.
Internal controls are to help mitigate fraud. If a control fails the auditors test than that
Assignment 5 Questions
1. EPER which is the expected population exception rate. When auditing effective internal
control systems EPER is likely to be 0 or 1%. For effective systems, it could be as high as
1. All these should be made early in the audit so the auditor knows the client/company.
Doing these is the beginning (planning phase) help auditors establish where to look for
March 2, 2017
1. The purpose of this discussion is to discuss the accounts that could be materially
misstated. If the managers do not have an explanation for the misstatements than the
purpose is to d
Oceanview Marine Company
Assessment of Acceptable Audit Risk
December 31, 2015
Likelihood of Financial Difficulty (check one) Source W/P reference:
High probability that the company will successfully continue in business for at least
. ACCT 340 Chapter 12 Practice Questions
1) When an asset is impaired, the rm reduces the asset's carrying value on the balance sheet and
ecognizes the decline in value .
gas a loss om continuing Operations on the income statement
= _. as an e
ACCT 340 Chapter 11 Practice Questions
1) The cost of land does not include
A) costs of removing old buildings
@costs of improvements with limited lives
C) costs of grading and clearing the land
D) legal fees and closing costs
2) The debit for a sales tax
Solution to MC12-1
Choice d is correct. Impairment is a two-step process, the rst of which is to determine
if an impairment exists, and the second of which is to measure the loss.
To determine if an impairment loss exists, we com
Case 6-1 pg. 329-336
1. The net profit figures are reported under PRC GAAP as RMB 19,011 million, under IFRS
as RMB 21,593, and under U.S. GAAP as RMB 25,577. PRC GAAP is reported as the
The increase RMB
ACCT 435 International Accounting
1. How does the principle of conservatism play a role in countries where there is a close linkage
between accounting and taxation?
Conservatism principle is when adopting a more cautious approac
Krystina M. Armstrong
Page 161 #11
11. What are the three major types of intangible asset, and how does the accounting for them differ?
IAS 38 defines an intangible asset as an identifiable, nonmonetary asset without physical
substance held for us
October 23, 2016
Case 8-2 Palmerstown Company
January 1, Year 1
January 1-31, Year 1
Average Year 1
When inventory purchases made
When ending inventory acquired
December 31, Year 1
Chapter 4 Gross Income Exclusions and Deductions for AGI
Teaching Suggestions Frequently, students have difficulty identifying which employee fringe benefits are subject to the discrimination rules. The table below shows nine groups of employee f
Chapter 9 Rental Activities
Teaching Suggestions Many students will find the vacation home rules to be the most difficult concept covered in the chapter. To help them in understanding these rules, it might be useful for them to realize that thes
Chapter 8 Depreciation and Amortization
Teaching Suggestions 1. Computing first-year depreciation for personal property placed in service during 2007 may involve two separate calculations. Students need to be aware of the rules for each calculat
Chapter 7 Self-Employment
Teaching Suggestions 1. Chapter 7 focuses on the reporting requirements for self-employed individuals. In this chapter, students learn how to calculate net profit (or loss) from a business operated as a sole proprietors
Chapter 5 Personal Itemized Deductions
Teaching Suggestions To help students understand the importance of AGI in determining the itemized deductions described in Chapter 5, assist them in developing a list of the various AGI limitations imposed o