Cash in Hand
Topic: Revenue Recognition/Misrepresentation of Fact by Client
Characters: Heather Hunter, Senior in CPA firm
Buzz Thompson, Owner/manager of Fashion First
Sandy, part-time bookkeeper of Fashion First
In addition to the usual mix of compilati
401(k) plan An employee contributes a portion of gross earnings to an account in the
401(k) plan and does not pay income tax on the contributed earnings.
account Subdivision under the three sections of the accounting equation used to
summarize increases a
A. The word penalty kick is lexical in soccer because it is a rule in the rulebook.
B. The word "glorsherfs" really has no definition and can be used however.
c. The attack on Isis is Theoretical because they see the world as a whole harmful
EXHIBIT 2 Ernst & Whinney Internal Memo Regarding Visit to ZZZZ Best
TO: ZZZZ Best Co., Inc. File
FROM: Larry 0. Gray
RE: Visit to Sacramento Job
At our request, the Company arranged for a tour of the job site in
Sacramento on November
EXHIBIT 3 - Ernst & Whinneys Confidentiality Agreement with ZZZZ Best
Regarding Visits to Restoration Projects
Mr. Barry Minkow, President
ZZZZ Best Co., Inc.
7040 Darby Avenue
In connection with the proposed public offering
face value The amount written on the face of a promissory note; usually the same as
Federal Tax Deposit Coupon A form sent with payment for FICA and federal income
taxes or federal unemployment taxes to indicate the total amount of taxes be
calendar year Period for which a business begins on January 1 and ends on
canceled checks Checks paid by the bank and deducted from the depositor's account.
capital Money supplied by investors, banks, or owners of a business. Refers to the
EXHIBIT 1 Ernst & Whinney's ZZZZ Best Engagement Letter
Mr. Barry Minkow
Chairman of the Board
ZZZZ Best Co., Inc.
7040 Darby Avenue
Dear Mr. Minkow:
This letter is to confirm our understanding regarding our engagement
Psych Me Out
Topic: Leadership (Communication, Power, Motivation)
Characters: Bob, Managing Partner
Leandra, Stacys Supervisor
Stacy, Junior Accountant
Stacy is a recently hired employee of a growing local CPA firm. The par
The Right Data
Topic: Variance Reporting
Characters: Arnie Armstrong, Director of Manufacturing Computer Services
Willy McClean, Manager, Manufacturing Department 207
Kathy Cleary, Supervisor, Manufacturing Department 201
Arnie Armstrong has been with Pie
Topic: Violations of Internal Control
Characters: Chris, New Distribution Supervisor at a large candy manufacturer
Bob, Inventory Control Manager, Chriss immediate boss
Chris has been recently hired as the Distribution Supervisor for an int
Topic: Performance Appraisal
Characters:Dave Leppla, First-year in-charge on a not-for-profit engagement
Bob Wilson, Engagement manager
Dave Leppla has recently completed his second year on the audit staff of a CPA firm. During
the past ye
Dont Play Games!
Topic: Fraud in Financial Reporting Systems
Characters: Russ, President
Monica, Vice President-Small Business Loans at local bank
Rick was hired as Controller to help sort out and organize the records of a $7 million doll
Topic: Client Services
Characters: Steve, Second-year staff accountant in small CPA firm
Partner, One of the firm's partners
Steve graduated from college about a year and a half ago and has been progressing rapidly as
a staff member o
Bidding on an Audit Engagement Proposal
Topic: Client/Engagement Acceptance
Characters: Joyce, Manager at a new audit firm
Gary, In-Charge Accountant
George and Sheila, Partners
Due to the economic downturn, George and Sheila were laid off by a larger aud
Topic: Auditing (Confidentiality , Misrepresentation of Fact)
Characters: Jennifer Grace, First-year member of her CPA firms management
Tom Ward, CFO of Fantastic Developments, Inc., a client
While reviewing the current-year audi
packing slip A form that lists the items included in the shipment.
Paid-in Capital in Excess of Par The account that represents the amount of cash
received by a corporation over the stock's par value.
par value The dollar amount assigned to each share of
Salaries Expense The expense account used to record employees' earnings.
salary A fixed amount of money paid to an employee for each pay period.
sale on account The sale of merchandise that will be paid for at a later date.
Sales A revenue account to reco
December 10, 2015
The ethics case discusses the Danville Bottlers a wholesale beverage company,
who FIFO inventory method to determine the cost of its ending inventory. For the fiscal
year ending June 30, 201