Discuss the rules relating to the provision of accounting and other services by a public accountant (PA).
What will be an ideal response?
If a PA performs the bookkeeping and makes accounting decisions for a company and the management does not know enough about the financial statements to take primary responsibility for them, the PA cannot be considered independent for assurance services. It might be perceived that the PA has both prepared the financial statements or other data and given an audit report or other assurance on his own work. The PA can perform the bookkeeping and counsel the client management about the accounting
principle choices, but in the final analysis the management must be able to say, "These are our financial statements (or other data); we made the choices of accounting principles; we take primary responsibility for them."
You might also like to view...
Is long-term true happiness at work achievable? Discuss in relation to positive psychology, authentic leadership and happiness.
What will be an ideal response?
When using the modified approach to account for infrastructures, expenditures to extend the life of the infrastructure assets are:
A. Expensed. B. Capitalized. C. Either of the above. D. Neither of the above.
What do yo-yo, aspirin, and thermos all have in common in a marketing sense?
A. They were all once brand names that have since been declared generic terms. B. They are all heavily promoted during daytime television. C. They are examples of functional product modification. D. They have extremely high brand loyalty. E. They are all examples of private-label brands.
The high cost of cooling data centers has become a growing concern to environmentalists and business owners.
Answer the following statement true (T) or false (F)