Chapter One

Powerful Essays
CHAPTER 1

The Role of the
Public Accountant in the
American Economy

Review Questions

1-1 The “crisis of credibility” largely arose from the number of companies that restated their previously issued financial statements as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities and fraud being investigated and disclosed brought into question the effectiveness of financial statement audits. In addition, the criminal conviction of Arthur Andersen, LLP, one of the then Big 5 accounting firms, on charges of destroying documents related to the Enron case brought into question the ethical standards of the profession.

1-2 Assurance services are professional services that enhance the quality of information, or its context, for decision-making. The two types are: (a) those that increase the reliability of information and (b) those that involve putting information in a form or context that facilitates decision-making.

1-3 A financial statement audit is, by far, the most common type of attest engagement. The overall assertion, made by management, most frequently is that the financial statements follow generally accepted accounting principles.

1-4 A large corporation with securities listed on a stock exchange is required by the rules of the stock exchange and by the rules of the Securities and Exchange Commission to provide an audit report with the annual financial statements furnished to its stockholders. It also is required to engage the auditors to provide an opinion on its internal control. Apart from legal requirements, however, a large listed corporation recognizes that it must maintain investor confidence in the reliability of its financial statements and internal control over financial reporting if it is to continue to be able to

You May Also Find These Documents Helpful

  • Powerful Essays

    CHAPTER ONE

    • 1668 Words
    • 10 Pages

    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Computers are truly amazing machines. They are marvels of the modern age. They in fact make the modern age what it is. Without computers we would not have access to the knowledge and comforts that we now take for granted. But what exactly makes them so powerful? The power of computers rests in their ability to process information for us. The faster they do this, the faster we can solve problems and arrive at solutions that are reasonably correct…

    • 1668 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Chapter One

    • 984 Words
    • 4 Pages

    ALCOHOL ABUSE, SELF ESTEEM AND TEENAGE PREGNANCY AMONG ADOLESCENTS CHAPTER ONE INTRODUCTION Background of the study Teenage pregnancy is the pregnancy that occurs under twenty years of age. In Uganda, the teenage pregnancy rate stands at 31% according to the Uganda Demographic Health Survey of 2006(UDHS, 2006). Regarded as the most troubling aspect of adolescence, teenage pregnancy is gradually on the increase and about 60-70% of teenagers are sexually active and due to this in most parts of…

    • 984 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Chapter One

    • 1573 Words
    • 7 Pages

    Darkness. Utter, simple, aphotic, tenebrous, atramentous darkness. I see a pinpoint of light, and try to swim toward it. Either I get closer to it, or it gets closer to me, but I can’t tell in the inky darkness. The pinhole expands as it gets closer, and I get pulled toward it. It expands, and suddenly engulfs me in a flash of light. I’m in a perfectly cubical white room, apparently made of marble. I turn around and see the hole I came from. An human-sized black, inky hole. It seems strange in…

    • 1573 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    sociology chapter one

    • 1024 Words
    • 4 Pages

    Reading Assignment One Introduction to Sociology Online Best Strategy for Completion: This assignment is much easier if you answer the questions as you read the assigned material every week. For example, in the first week of class you will read chapters 1and 5—answer the questions below at the same time, as you do your reading. The next week you will read chapters 2 and 3 and you should answer the questions for those chapters as well—chapter 3 questions can be found on reading assignment two…

    • 1024 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Chapter One Summary

    • 616 Words
    • 3 Pages

    Chapter One Summary Kelsey February 18, 2013 Chapter One Summary According to Moughamian (2009), "English language learners (ELLs), represent one of the fastest growing groups among the school-aged population in the U.S.” (para. 1). By the year 2015, English language learners will make up 30% of the schools population in the U.S. (Moughamian, 2009). English language learners, as well as native English speakers, are required to be successful in school and succeed as productive members of…

    • 616 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Bmc - Chapter One

    • 3650 Words
    • 15 Pages

    UNIVERSITY MAKUMIRA DAR ES SALAAM COLLEGE OCTOBER, 2012 CHAPTER ONE * Introduction Human beings exchanged news long before they could write. They spread news by word of mouth on crossroads, at campfires or at markets. Messengers raced back from battlefields with reports on victories or defeats. Criers walked through villages announcing births, deaths, marriages and divorces. Stories of unlikely occurrences spread, in the words of one anthropological report, "like wildfire" through preliterate…

    • 3650 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    Chapter One Summary

    • 255 Words
    • 1 Page

    The Image of the City - Chapter One Summary Teacher: Toby Day Student: SYU, JIA-HAO Words: 220 Chapter one is composed of author’s main idea; the image of the environment, then has been distinguished to two sections: Legibility and imagebility. Generally speaking, it is apparently that the majority of author’s theory is based on the visual quality of the American city. Under legibility consequence, cityscape could be patterned by citizen’s daily life experience. Especially in some modern…

    • 255 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Chapter One Review

    • 599 Words
    • 3 Pages

    Chapter 1 Review Legal Environment 1. Describe the 4 primary sources of law: a. Constitutional- Federal Supreme law of the land. Gives us our rights, outlines powers of government and delegates powers to different branches of government. b. Statutes- Federal and State Laws. Uniform Laws: codified laws written down. The Uniform Commercial Code (UCC) facilitates commerce and governs trade in state, out of state, and on Indian reservations. c. Administrative rules and regulations- Federal…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Chapter one notes

    • 1154 Words
    • 16 Pages

    9/1/2011 Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition Archie B. Carroll Ann K. Buchholtz © 2012 South-Western, a part of Cengage Learning 1 Chapter 1 The Business and Society Relationship © 2012 South-Western, a part of Cengage Learning 2 Learning Outcomes 1. Characterize business, society, and their interrelationships. 2. Describe pluralism and identify its attributes, strengths, and weaknesses. 3. Clarify how our pluralistic…

    • 1154 Words
    • 16 Pages
    Satisfactory Essays
  • Satisfactory Essays

    CHAPTER ONE PAGEANT

    • 271 Words
    • 2 Pages

    The American Pageant Chapter 1 Seraphin Tala Period 2 1. Christopher Columbus: Was a skilled Italian seafarer who discovered an island in the Bahamas on October 12, 1492. Appalachian Mountains formed about 350 million years ago. Marco Polo: Was an Italian adventurer. Vasco de Gama: An explorer who reached India and acquired spices Bartholomeu Dias: An explorer who rounded the southernmost tip of Asia. Juan Ponce de Leon: Explorer who explored Florida. Francisco Pizarro crushed…

    • 271 Words
    • 2 Pages
    Satisfactory Essays