This exam covers an understanding of the format and function of financial statements, including analysis and interpretation of financial statements. In addition to doing tax returns for individuals and providing accounting services to small and medium business, Linh offers a Nanny Payroll Service to employers of nannies and other caregivers. For example, British Columbia employers must follow all provincial labour standards to avoid liability under the Employment Standards Act (ESA). Einstein said that the definition of insanity is doing the same thing over and over and expecting different results. It also gave rise to the passage of Sarbanes-Oxley and more rigorous auditing standards.
I want you to take your original essay on the characteristics of a great student and write an essay (of whatever you think is an appropriate length) where you evaluate your work so far this semester in Accounting in comparison with those characteristics. Accounting is like a complicated game where only about half of the rules are written down and you have to figure out the other rules on your own. I certainly teach accounting but I also hope that I am teaching something more than accounting. Accounting was apparently not his path but he seems to have done a great job in finding his path. I used to want to teach them every single detail of countless accounting rules.
At the end of one year, I will award the person who has made the most profit with a bonus of $250,000.” The young MBAs grow excited because they all believe they are destined to win that big pile of money as their reward. As I have mentioned, I was involved with two panel discussions recently at the annual meeting of the American Accounting Association. I am also glad to know that the IRS has increased its auditing standards because of this.
Understandability: The accounting information must possess the quality of economic significance to the user, i.e. to understand the content and significance of financial statements and reports. To be comparable, accounting reports must belong to a period, use common unit of measurement and common format of reporting. Therefore, they would need all relevant inputs financial or otherwise, for decision making.
Let me just use Wikipedia’s definition – Accounting scandals, or corporate accounting scandals, are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations. It resulted to the displacement of more than 20,000 people, the death of America’s Most Innovative Company” for six years in a row and the dissolution of one of the Big 5 global accounting firms (Arthur Andersen). The (accounting) scandal (among others) here involved the inflation of the company’s net worth by $2.7 billion.