Auditing
PAGE #1
Identify a Certified Public Accountant who has been disciplined by a regulatory group. You may consider one of the following entities who has the authority to discipline members of the profession:
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1. State Board of Accountancy (e.g. http://www.llr.state.sc.us/POL/Accountancy/index.asp?file=FinalOrders.htm ). You may use any state. I provide the cite to South Carolina for illustrative purposes only.
2. American Institute of Certified Public Accountants (http://www.aicpa.org/ForThePublic/DisciplinaryActions/Pages/default.aspx)
3. Public Company Accounting Oversight Board http://pcaobus.org/Enforcement/Decisions/Pages/default.aspx
4. Securities and Exchange Commission (Search “accounting and auditing enforcement releases” or “AAER”)
Write a one page summary that contains the following items.
1. Describe the event that led to the disciplinary actions. Select one that has enough information to write an interesting and informative summary.
2. Identify the standard/law that was violated that led to the disciplinary action. Provide relevant references to the authoritative literature (GAAP and/or GAAS, code of ethics, code section)
3. Identify the penalties issued.
Other items that will affect your grade:
1. You do not have to include a cover page but you do need to include a bibliography with citations to sources.
2. Include your name in the header of the paper.
3. Number all pages.
4. Do not cut and paste from the document. The one page summary should be in your own writing.
5. Submit your paper to the e-college drop box.
6. Name your file in the following way: Lastname_firstname_ACG4651_assign1
For example, John Doe would name the file: Doe_John_ACG4651_assign1
PAGE #2
From the file provided by the instructor, identify 5 publicly traded companies, one from each of the filing status and size in the categories below.
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A large accelerated filer in the service industry
A large accelerated filer in the financial services industry
An accelerated filer in the manufacturing industry
An accelerated filer in the transportation industry
A non-accelerated filer in the retail industry
You may need the following page to determine what the Standard Industrial Classification (SIC) code indicates for industry: http://www.osha.gov/pls/imis/sic_manual.html
Filer status can be found at: http://www.sec.gov/answers/form10q.htm
For public companies, there are 6 possible financial statement opinion types:
1. Unqualified Opinion with no modifications
2. Unqualified opinion with modifications
a. Other auditor
b. Emphasis of matter
c. Going Concern
d. Acceptable deviation from GAAP
e. Lack of consistency
For one of the companies that has one of the opinions under 2a-e, describe in a paragraph how the opinion was modified and what the underlying reason for the modification was. Do not cut and paste.
Identify a Certified Public Accountant who has been disciplined by a regulatory group. You may consider one of the following entities who has the authority to discipline members of the profession:
1. State Board of Accountancy (e.g. http://www.llr.state.sc.us/POL/Accountancy/index.asp?file=FinalOrders.htm ). You may use any state. I provide the cite to South Carolina for illustrative purposes only.
,
2. American Institute of Certified Public Accountants (http://www.aicpa.org/ForThePublic/DisciplinaryActions/Pages/default.aspx)
3. Public Company Accounting Oversight Board http://pcaobus.org/Enforcement/Decisions/Pages/default.aspx
4. Securities and Exchange Commission (Search “accounting and auditing enforcement releases” or “AAER”)
Write a one page summary that contains the following items.
1. Describe the event that led to the disciplinary actions. Select one that has enough information to write an interesting and informative summary.
2. Identify the standard/law that was violated that led to the disciplinary action. Provide relevant references to the authoritative literature (GAAP and/or GAAS, code of ethics, code section)
3. Identify the penalties issued.
Other items that will affect your grade:
1. You do not have to include a cover page but you do need to include a bibliography with citations to sources.
2. Include your name in the header of the paper.
3. Number all pages.
4. Do not cut and paste from the document. The one page summary should be in your own writing.
5. Submit your paper to the e-college drop box.
6. Name your file in the following way: Lastname_firstname_ACG4651_assign1
For example, John Doe would name the file: Doe_John_ACG4651_assign1
From the file provided by the instructor, identify 5 publicly traded companies, one from each of the filing status and size in the categories below.
A large accelerated filer in the service industry
A large accelerated filer in the financial services industry
An accelerated filer in the manufacturing industry
An accelerated filer in the transportation industry
A non-accelerated filer in the retail industry
You may need the following page to determine what the Standard Industrial Classification (SIC) code indicates for industry: http://www.osha.gov/pls/imis/sic_manual.html
Filer status can be found at: http://www.sec.gov/answers/form10q.htm
Prepare a chart with the following information about the companies:
Item No. Company Name SIC code SIC Code description Market Cap. (in $M) Filer Status Fiscal year end (FYE) Auditor and report date Financial Statement Opinion Type (see below)
Ex. ABC 6331 Insurance 7,459 Lg. Accel 12-31 PWC
2-28 E lack of consistency
1.
2.
3.
4.
5.
For public companies, there are 6 possible financial statement opinion types:
1. Unqualified Opinion with no modifications
2. Unqualified opinion with modifications
a. Other auditor
b. Emphasis of matter
c. Going Concern
d. Acceptable deviation from GAAP
e. Lack of consistency
For one of the companies that has one of the opinions under 2a-e, describe in a paragraph how the opinion was modified and what the underlying reason for the modification was. Do not cut and paste.
,
Jermaine Byrant
Nicole Johnson
OVER
RATING
YEARS
