Revenue Recognition Revenue is the electricity that drives business. Revenue has been the starting point on every income statement generated‚ every sales meeting conducted‚ and is on every entrepreneur’s wish list. The basic concept for revenue recognition is that revenue should not be recognized until it is realized or realizable and earned. There are also four criteria must be met in order to recognize revenue: 1) persuasive evidence of an arrangement exists: Consider the substance of the transaction
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are two independent situations: A. Grinner and Greeter‚ CPAs‚ were engaged to perform an audit of the financial statements of Happy‚ Inc. Happy’s management would not allow Grinner and Greeter to confirm any of the accounts receivable. All other auditing procedures were performed as considered necessary by Grinner and Greeter and no problems were found. However‚ Grinner and Greeter were unable to satisfy themselves with regard to the balance in the accounts receivable. B. Tick and Tie‚ CPAs‚ were
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| |and independent auditors and auditing firms‚ and identify their | | | |sources. | | | | |2‚ 3‚ 4‚ 5‚ 6‚ 7 |39‚ 40‚ 41‚ 43‚ 44‚ 48‚ 51 | |2. Explain the 10 AICPA generally accepted auditing standards | |
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External/Internal Factors Introduction Since the start of apple in 1976 apple has established a unique reputation in the consumer electronic industry. Apple started out as a computer company and expanded into other electronics within the last decade. Apple has about 35‚00 employees world wide and had world wide annual sales of 32.48 billion in its first fiscal year ending September 29‚th 2008. (Para Amitt‚ Singh 2004) This paper will explore how Apple used the Four levels of management
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Why is it important for external auditor to be independent? Throughout the years‚ banks‚ shareholders‚ possible investors and creditors always relied on the financial statements produced by a company. Since the management of a company is producing these documents it has been assumed that the managers may act dishonestly so that their performance looks better. To monitor the company’s performance better the directors along with the shareholders employ external auditors to check all these financial
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Full Disclosure Dena Hawkins ACC/421 October 8‚ 2012 Kimberly Barnett Abstract: The purpose of this paper is to Answer Question 2 in chapter 24 of Intermediate Accounting; explain the need for full disclosure in financial reporting and to identify the possible consequences of failing to properly disclose certain items in financial statements. Full Disclosure Paper Ch. 24 – Question 2 “What is the full disclosure principle in accounting?” According to our text‚ “the full disclosure
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SARBANES-OXLEY ACT ACC 403- AUDITING PROFESSOR August 19‚ 2012 The Sarbanes-Oxley Act was placed into effect July 2002; the act introduced major changes to the regulation of corporate governance and financial practice. The Sarbanes-Oxley Act was named after Senator Paul Sarbanes and Representative Michael Oxley‚ who were the main architects that set a number of non-negotiable deadlines for compliance. The organization for Economic Cooperation and Development was one of the first non- government
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External and Internal Environmental Analysis “Environmental scanning is the internal communication of external information about issues that may potentially influence an organization ’s decision-making process” (Albright‚ 2004‚ p. 34). For organizations like Fresenius Medical Care‚ a worldwide company‚ the awareness of external environmental factors is vital to maintain competitive on the dialysis industry. Even though there are multiple external factors to analyze‚ in recent years the government
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Auditing Theory and Practice Case 1 WorldCom: A Focus on Professional Responsibility Prepared by: EL Ahmadi Med Reda Worked With: Ibtihal Slassi Fall 2013 1- Auditor independence refers to the disinterest from the internal and external parties that could influence the professional judgment of an auditor. In other words‚ auditor independence is the lack of any interest that may create a threat or a risk of material bias regarding the reliability of the financial statement
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External and Internal Environmental Analysis Richard Moody STR/581 April 1‚ 2013 Ryan Derrickson Introduction Apple‚ Inc. started as a computer company launched back in 1976 by Steve Jobs and Steve Wozniak. The goal behind Apple Inc. was to create a computer that could be used by diverse global communities. Apple has always been very savvy in their approach on releasing the advanced technology
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