company’s revenue. This paper explains the fraud occurred in recognizing the revenue and how it overstated the financial statements and increased the stock price. It also explains the fraud theory applied to the revenue recognition and the auditor’s failure in discovering the fraud and reports it to the SEC. This paper will provide methods that auditors should follow in auditing public companies and the best practices they should follow if the company changed the revenue recognition. Background
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Case 09-1: Velocity Cellular Page 1 D I S C U SS I O N M A T E R I A L S O b j e c t i v es o f t h e C a se This case gives students the opportunity to use accounting and auditing literature and professional judgment to research complex accounting issues effectively and efficiently. Specifically‚ students will be able to: Understand the application of the guidance in ASC 605-25‚ as amended by ASU 2009-13‚ to complex multiple-deliverable arrangements. Understand the application of the
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Q3: Should Apple lobby the FASB to change the revenue recognition rules for smartphones? In our opinion‚ Apple should lobby FASB to change the revenue recognition rules for smartphones‚ given the following reasons:- 1. Under “non-GAAP measures”‚ Apple’s performance looked much better than that under GAAP measures. Please find below a table1 summarizing the differences of key financial data between GAAP and non-GAAP measures for the fourth quarter of 2008:- Q4 2008 GAAP ($ billions) Non-GAAP
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community members. Although the company was mainly owned by his family any decision regarding material aspect was always discussed with the audit committee. Finally‚ outside auditors had given a clean opinion. (2) identifies the issues/questions in the case Nick goes and asks the CFO some questions regarding the first issue which is how
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tools are expensed when purchased. (f) Agricultural companies use market value for purposes of valuing crops. (g) Each enterprise is kept as a unit distinct from its owner or owners. (h) All significant postbalance sheet events are reported. (i) Revenue is recorded at point of sale. (j) All important aspects of bond indentures are presented in financial statements. (k) Rationale for accrual accounting. (l) The use of consolidated statements is justified. (m) Reporting must be done at defined
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EXPENSE RECOGNITION The production‚ sales‚ or cash receipts method can be used to assign revenues to periods of time. Expense recognition involves assigning or matching expenses to periods of time. Some expenses are closely related to the revenues assigned to periods of time. For example‚ the costs of goods sold during a period reflect the costs of materials‚ labor‚ and manufacturing overhead incurred to produce units of product that were sold. These costs are called product expenses. Other expenses
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REVIEWS‚ REFINEMENTS AND NEW IDEAS IN FACE RECOGNITION Edited by Peter M. Corcoran Reviews‚ Refinements and New Ideas in Face Recognition Edited by Peter M. Corcoran Published by InTech Janeza Trdine 9‚ 51000 Rijeka‚ Croatia Copyright © 2011 InTech All chapters are Open Access articles distributed under the Creative Commons Non Commercial Share Alike Attribution 3.0 license‚ which permits to copy‚ distribute‚ transmit‚ and adapt the work in any medium‚ so long as the original work is properly
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1. Recognition and recall are not the same thing. Describe how these two concepts differ. Develop examples of how recognition and recall can each be important for marketers. Consumers retrieve information through two retrieval systems‚ which is from either their: a) Explicit memory b) Implicit memory Implicit memory is unrehearsed and deals with memory for things without consciously trying to remember them. For example‚ driving a car. • How can you have memory of something you cannot explicitly
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Cognitive processes involved with face recognition To human beings‚ facial recognition is not only essential for identification of persons in the social context‚ but also a vital social tool. There are various reasons why facial recognition process is a vital to human beings. Facial recognition serves an essential purpose of identifying members within our society; as a result‚ we are able to select those that we can socialize with that aid our survival in society. For instance‚ the males are
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REWARD & RECOGNITION POLICY Introduction: Benefits of an Employee Recognition Program 1. Increased customer loyalty and retention; lower turnover. Employees who feel appreciated and respected will be more productive and motivated‚ and are likely to remain longer with the company. 2. Higher employee productivity overall. 3. Increased retention of mid to high performers. 4. Overall increased employee morale. Employees often go above and beyond what is expected of them in most cases. Showing
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