CPA REPORT Essay

CPA Report The manager of a large organization has asked the CPA to provide information to outside CPAs examining a subsidiary that has been set up as a corporation. As a part of their review, the outside CPAs want to be provided with the several explanations. The CPAs want to know the methodology used to determine deferred taxes and the procedures for reporting accounting changes and error corrections. The CPAs also want to know the rationale behind establishing the subsidiary as a corporation. Methodology Used to Determine Deferred Taxes The methodology used to determine deferred taxes deals with the basic principles of accounting for income taxes. According to FASB (2013), â€Å"The following basic principles are applied in accounting for income taxes: A current of deferred tax liability or asset is recognized for the current or deferred tax consequences of all events that have been recognized in the financial statements The current of deferred tax consequences of an event are measured by applying the provisions of enacted tax laws to determine the amount of taxes payable or refundable currently or in future years The tax consequences of earning income or incurring losses or expenses in future years or the future enactment of a change in tax laws or rates are not anticipated for purposes of recognition and measurement of a deferred tax liability or asset† (Summary of Statement No. 96). Procedures for Reporting Accounting Changes and Error Corrections SFAS 154 addresses procedures for reporting accounting changes and error corrections. This statement 154 calls for retrospective application for voluntary changes in accounting principles. Through retrospective application, a change in accounting principle is treated by restating comparative financial statements to reflect the new method as though it had  been applied all along. Thus, the company should show any cumulative effect as a retrospective application and an adjustment to the opening retained earnings balance. SFAS also requires retrospective application to be presented with respect to direct effects and related income tax effects of a change in principle. Indirect effects should be reflected in the period of the accounting change (FASB, 2013). Corrections of errors from prior periods are recorded as adjustments to the beginning balance of retained earnings in the current period. The nature of the error should be disclosed as well as the effect on the current and prior periods presented. If an error affects the current or prior periods presented or is expected to affect subsequent periods, the entity must disclose that comparative information has been restated, the effect of the correction by line-item and per-share amounts for all periods presented, and the amount of the adjustment to opening retained earnings (FASB, 2013). Rationale behind Establishing the Subsidiary as a Corporation There several reasons behind establishing a subsidiary as a corporation. One reason is that a corporation maintains a capital stock account, additional paid-in capital accounts, and a retained earnings account. â€Å"Net income or loss becomes part of retained earnings, and dividends are always paid equally to all shareholders of a particular class of stock† (Bline, Fischer, & Skekel, 2004, Chapter 7). Corporations are also able to reacquire some of its own equity interest in the form of treasury stock. Other advantages of establishing a subsidiary as a corporation are Limited Liability. When it comes to taking responsibility for business debts and actions of a corporation, shareholders’ personal assets are protected. Shareholders can generally only be held accountable for their investment in stock of the company. Ability to Generate Capital. Corporations have an advantage when it comes to raising capital for their business – the ability to raise funds through the sale of stock. Corporate Tax Treatment. Corporations file taxes separately from their owners. Owners of a corporation only pay taxes on corporate profits paid to them in the form of salaries, bonuses, and dividends, but any additional profits are awarded a corporate tax rate, which is usually lower than a personal income tax rate.  Attractive to Potential Employees. Corporations are generally able to attract and hire high-quality and motivated employees because they offer competitive benefits and the potential for partial ownership through stock options (U.S. Small Business Administration, 2013). MEMORANDUM TO: Manager FROM: CPA DATE: September 30, 2013 SUBJECT: Professional responsibilities as a CPA In response to the request for more information, the following is a summary of the professional responsibilities of a CPA. This memo will also cover the differences between a review and an audit. CPAs perform an essential role in society, and they are responsible to all those who use their professional services. CPAs have a continuing responsibility to improve the art of accounting, maintain the public’s confidence, and carry out the profession’s special responsibilities for self-governance (The CPA Journal, 2004). CPAs must adhere to the AICPA Code of Professional Conduct, which sets forth certain standards of professional conduct. AICPA members are bound by the AICPA Code of Professional Conduct. Rule 201 requires that members provide professional services with competency (AICPA, 2013). According to AICPA (2013), â€Å"In the delivery of personal financial planning services, a member shall adhere to the following Principles of Professional Conduct. ET Section 52 – Article I – Responsibilities In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities. Section ET 53 – Article II – The Public Interest Members should accept the obligation to act in a way that will serve the public interest, honor the public trust and demonstrate commitment to professionalism. Section ET 54 – Article III – Integrity To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity. Section ET 55 – Article IV – Objectivity and Independence A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance when providing auditing and other attestation services. Section ET 56 – Article V – Due Care A member should observe the profession’s technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member’s ability† (Professional Responsibilities). Review The purpose of a review is to provide limited assurance that financial statements do not have any known errors or departures from the accounting rules found in GAAP. There is usually no testing of information in the financial statements beyond inquiry and analytical review. The CPA will not obtain an understanding of the internal control system or address how the organization is addressing the risk of fraud in the financial statements (Ulvog, 2006). A review involves the CPA performing procedures that will provide a reasonable basis for obtaining limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the applicable financial reporting framework. A review does not contemplate obtaining an understanding of the entity’s internal control; assessing fraud risk; testing accounting records; or other  procedures ordinarily performed in an audit (Barfield, Murphy, Shank & Smith LLC, 2013). Audit The purpose of an audit is to provide reasonable assurance that financial statements are fairly presented in accordance with GAAP. In an audit, the CPA will gain an understanding of internal controls, evaluate the risk of major fraud, test the places where there is a significant risk of major fraud, and perform testing where necessary for the significant components of the financial statements (Ulvog, 2006). The auditor is required to corroborate the amounts and disclosures included in the financial statements by obtaining audit evidence through inquiry, physical inspection, observation, third-party confirmations, examination, analytical procedures, and other procedures (Barfield, Murphy, Shank & Smith LLC, 2013). An audit provides more assurance to a reader of the financial statements than a review. References AICPA. (2013). Retrieved from http://www.aicpa.org/INTERESTAREAS/PERSONALFINANCIALPLANNING/RESOURCES/PRACTICECENTER/PROFESSIONALRESPONSIBILITIES/Pages/ProfessionalResponsibilities.aspx Barfield, Murphy, Shank & Smith LLC. (2013). Retrieved from http://www.bmss.com/news-story.php?cn=172 Bline, D., Fischer, M., & Skekel, T. (2004). Advanced Accounting. Retrieved from The University of Phoenix eBook Collection database FASB. (2013). Retrieved from http://www.fasb.org/summary/stsum96.shtml The CPA Journal. (2004). Retrieved from http://www.nysscpa.org/cpajournal/2004/104/text/p80.htm Ulvog, J.L. (2006). Ulvog CPA. Retrieved from http://ulvogcpa.com/Audit_or_Review.html U.S. Small Business Administration. (2013). Retrieved from http://www.sba.gov/content/corporation

Pros and Cons in Teenage Pregnancy

How to prevent teen pregnancy has been a question for many years. Many people take having a baby as a joke. Getting pregnant and having a child involves many prose and cons. In the prevention of teen pregnancy there are many things that can be helpful. There are also other helpful ways to prevent teen pregnancy, such as sex education and birth control. All of these things are essential in the prevention of teen pregnancy. Refraining from sexual activities is a great way to prevent teen pregnancy, and the risk of getting a disease. In the past years less sex and more condoms use has meant lower rates of teenage pregnancy and sexually transmitted disease. Most teens have sex because of their friends being sexually active. The percentage of sexually active males declined from 57.4 percent to 48.8 percent, essentially erasing the gender gap. A National Survey of Family Growth stated that teens are having less sex. Avoiding sex and learning more about sex are good ways to assure your knowledge and decrease teen pregnancy. Traditionally children have received information about sexuality from their parents, church, friends, their doctors, and many other people. Many young teens learn about their bodies first. Many people believe that sex education being taught in schools assures children of correct and complete information about sexuality. Sex education starts in the primaries and continues through the secondary school. At the primary school stage, sex education teaches children about their bodies and attempts to promote a whole attitude towards the self-development process. During these years teachers attempt to correct any false ideas children may have learned about sex. At the beginning of secondary school teachers try to prepare students for puberty. For example, the children learn about nocturnal emissions, menstruation and changes that will take place in their bodies, they also learn and study reproduction. Further up the school, most young adult†s interest in sex increases, so they learn more about responsibility, and having relationships between members of the opposite sex. In secondary school, pupils learn more about the social and psychological aspects of sexuality. Many other subjects come up at this time in a teenager†s life, such as marriage, abortion, homosexuality, birth control, and other topics. Sex education is very importance to the teenage generation. Birth control is the control of birth or of childbearing by deliberate measures to control or prevent conception, contraception. An understanding of birth control requires some knowledge of human reproduction. Sexually, coming from a man millions of sperm are released into the woman's vagina. If an egg is there sperm travelling through a woman's fallopian tube will be fertilised by the sperm. Most birth control methods are made to prevent contraceptives. The most effective contraceptive method is surgical sterilisation. In many developing nations hormone drugs are injected into the body. Studies show that those methods are becoming effective, because the teenage pregnancy rate has dropped by 11%. Birth control is important to teenagers, and they should be used if a teen should become sexually active. Parents should remember to teach their children about birth control always, just in case a teenager should become curious and decide to have sex. In conclusion a teen pregnancy has a hard effect on society, in many ways. Most teen pregnancies were not planned. Surveys say about 65% of teen pregnancy's were not even discussed with their sexual partners. All of the other percentage of teen pregnancy's were not planned either, but it had been discussed with the teenagers sexual partner at some point in time. Most teenagers begin having sex without knowing the consequences. Teenagers need to take responsibility and remember to keep safe, because there are various ways to prevent teen pregnancy, for example abstinence, sex education, and various types of birth control.

Bruno - Boy in the Striped Pajamas Essay Example for Free

Bruno – Boy in the Striped Pajamas Essay Bruno is portrayed as talkative in the novel The Boy in the Striped Pajamas because when he went exploring he found a boy, named Shmuel on the other side of the fence he was not afraid to not only talk to him but, to have a bit of a conversation with Shmuel, although he had never met this boy before. Here is some of the conversation the two young boys carried on the first time they had met: â€Å"Hello,† said Bruno. â€Å"Hello,† said the boy. â€Å"I’ve been exploring,† he said. â€Å"Have you?† said the little boy. â€Å"Yes. For almost two hours now.† â€Å"Have you found anything?† asked the boy. â€Å"Very little.† â€Å"Nothing at all?† â€Å"Well, I found you,† said Bruno after a moment (page 106-107). Bruno is described as creative in this novel because when he let it slip to his sister that because of the rain he hadn’t been able to go and see Shmuel for a few days he was quickly able to make up an excuse that Shmuel was his imaginative friend: â€Å"I have a new friend,† he began. â€Å"A new friend that I go see everyday. And he’ll be waiting for me by now. But you cant tell anyone.† â€Å"Why Not?† â€Å"Because he’s an imaginary friend,† said Bruno trying his best to look embarrassed, just like Lieutenant Kotler had when he had became trapped in his story about his father in Switzerland. â€Å"We play together everyday† (page 155) In this novel Bruno is showed as curious because he loves to explore even though it is off limits at the new house, ‘Out-With’, Here is an example of a time when Bruno went exploring: ‘Before heading of in that direction, though, there was one final thing to investigate and that was the bench. All of these months he’d been looking at it and staring at the plaque from a distance and calling it ‘the bench with the plaque’, but he still had no idea what it said. Looking left and right to make sure that no one was coming, he ran over to it and squinted as he read the words. It was only a small bronze plaque and Bruno read it quietly to himself. ‘Presented on the occasion of the opening of†¦Ã¢â‚¬  He hesitated. ‘Out-With Camp,’ he continued, stumbling over the name as usual. ‘June nineteen forty’ (page102). Bruno is defined as caring throughout the book because he doesn’t recognize the various barriers presented, between him and Shmuel, Bruno is also very caring as he treats Shmuel as an equal unlike the soilder’s and many people around him. ‘Perhaps you can come to dinner with us one evening,’ said Bruno, although he wasn’t sure it was a very good idea. ‘Perhaps,’ said Shmuel, although he didn’t sound convinced. ‘Or I could come to you,’ said Bruno. ‘Perhaps I could come and meet your friends,’ he added hopefully (page 132). This specific reference from the novel shows two different barriers between Shmuel and Bruno, one being the fence between them and the other being the families when they go to supper together. Bruno – Boy in the Striped Pajamas. (2016, Nov 12).

The Usability and Safety Aspects of the Defibrillator Essay

The Usability and Safety Aspects of the Defibrillator - Essay Example The essay "The Usability and Safety Aspects of the Defibrillator" talks about the structure of an automated external defibrillator and the aspects of its usage. The evolution of the world has been accompanied by new, varied concepts. Needless to say, such variations have been felt in the way sets of equipment are designed. The manufacturing of sets of equipment has been persistently evolving. What appeared to matter so much, as far as the manufacturing of instruments was concerned, pertained to beauty and the size of the working of the instrument to enable it to serve the intended purposes. The transformations in the current, evolving world have changed the whole scenario. It is clearly depicted by concepts such as ergonomics, inclusivity, and work safety. As if not enough, desirable workplace environments has shaped the manufacturing process in certain ways, including the necessitation of incorporation of aspects pertaining to efficiency, as well as a reduction of stress at the workplace. Indeed, in the current world, ergonomic concepts and quality and safety of the equipment are arguably inseparable. Ergonomics concepts are inclined on coming up with designs of equipment and devices that are suitable for human operations. The objective of ergonomic concepts is to foster productivity while fulfilling the health requirements. The relevance of ergonomic concepts is most appreciable when designing products and equipment, as well as machines that contain interfaces that are not only reliable but easy to use., but easy for use (Beauchamin & Hays, 1996). Generally, there are several techniques and tools that are often used as approaches of human factors in addressing safety issues. These include usability testing, forcing functions, and sta ndardization and resiliency efforts. Human factors engineers often test new equipment and systems under the real world conditions in ensuring that unintended consequences of the new technologies are identified (Burns & Vincente, 1994). In most cases, usability testing can help in identifying workarounds. This paper seeks to discuss the safety measures in the design of each component in the automated external defibrillator (AED) with a focus on the reliability of the device in terms of bio-compatibility, mechanical failures, and electrical failures. Usability and Safety Aspect of the AED The automated external defibrillator is one of the portable electronic devices within the medical field that is used to automatically diagnose the potentially life threatening ventricular tachycardia and cardiac arrhythmias of the ventricular fibrillation in patients (Gliner et al. 1998). This device can treat these diseases through defibrillation, which is an application of the electrical therapy th at helps in stopping the arrhythmia, hence allowing the heart to be able to reestablish effective rhythm (Walsh & Krongrad, 1993). The automated external defibrillator (AEDs) has simple visual and audio commands that make them simple so that they can be used for layman. It is worth noting that in order to rate AEDs as being reliable in the diagnosis of heart related diseases, there was need for manufactures to take into consideration safety measures while designing each of the AED components in making sure the reliability of this device in terms of mechanical failures, bio-compatibility and electrical failures is guaranteed (Walsh & Krongrad, 1993). As a safety measure, the AED is designed in such a way that it can be used effectively and safely without any previous training. This implies that the use of the device is not restricted to the trained rescuers though training is often encouraged for purposes of helping improve on the time to correct pad placement and shock delivery. As often the case, the AEDs can analyze the ECG rhythm of a victim and be able to determine if a shock is needed. The semi-automatic AED often indicate the need for shock, which more often than not, gets delivered by an

Project Management Essay Example | Topics and Well Written Essays - 2250 words - 2

Project Management - Essay Example The PFI is termed as a more formal approach for PPP adoption. PFI in simplest form is termed as Design Build Finance and Operate (DBFO) system. Procurements of material can be made using different modes in general, but the Private Finance Initiative (PFI) and Public Private Partnership (PPP) stands distinctly apart in that it allows the contribution of private parties as well in public sector projects. This not only helps in having better options for the project manager, but it also provides momentum to the project towards its completion on time. The PFI generally involves long term contracts ranging from 15-30 years with private sector contractors for providing quality services as per the agreement terms. The PPP forum states that1 such an arrangement ‘typically involves the joint ownership of a special purpose vehicle established under company law’. These are in fact the basic minimum conditions that need to be taken into account. Things like financial background, track record, mutual chemistry of the private partner with the public sector organization are the one’s which need to be taken into while finalizing the partnership program Inviting PFI/PPP is not free from potential disadvantages, if there are some problems in the execution process. The contractual obligation in PFI/PPP is meant to safeguard all the parties involved, but at times the cumbersome process and the terms of the contractual agreement works to the disadvantage of potential bidders. In addition the amount of flexibility that is available in purely public sector project is missing in PPP projects. Quite often the pressure of delivering on time takes its toll on the workforce, who finds themselves stretched beyond their limits, but such voices often remain mum because private companies do not encourage the unions within their companies. A prerequisite for such partnerships is to

Civil War Essay Example | Topics and Well Written Essays - 1000 words

Civil War - Essay Example The civil war between the North and the South served as crossroads for the development of the nation in future. In order to understand the American nation as a whole, the civil war has to be studied as it has been claimed that â€Å"what America is today† is due to the civil war of the nineteenth century. The civil war has played a key role in defining the existence and character of the United States of today. Before the civil war, America was viewed as a nation segregated into different states. The civil war transformed America into a comprehensive nation comprising of several states and is named as the United States of America. The most important cause for the civil war in America from 1861 to 1865 was the issue if slavery (Rhodes, 2009). The civil war is seen as the internal war between the states of America. The Northern states were opponents of slavery and never supported the issue as it did not resemble the true spirits of America. The Northern sates formed the Union. Th e Southern states depended on slavery for sustaining the growth of economy. The civil war gained momentum when the slavery was proposed to be spread to the western states. Due to opposite views, the Southern states of America that were slave states declared secession from the Union. The southern states of America wanted themselves free from the shackles of the Union and wanted a separate existence. The Southern states declared a separate confederation of states in America as a symbol of the secession. The Union wanted to keep United States in tact and had the intentions of setting the states free from slavery. As a result of this, a bloody civil war occurred between the northern and the southern states that continued over a period of four years. There was no intervention of foreign power in the civil war of America. The civil war resulted in huge loss of infrastructure and loss of lives of the people of America. More than 600,000 soldiers were killed in the war and the properties an d infrastructure of the southern states were devastated. The confederation of the southern states ultimately collapsed and it was possible to finally get rid of slavery. The process of reconstruction of the nation led to the restoration of national unity. The slaves were freed and individual were granted fundamental rights of freedom. Thus the civil war was the platform for the formation of national unity and integrity of the states of America (Mitchell, 2001). The abolition of slavery and grant of fundamental rights and freedom to the individuals led to the formation of United States of America. Thus, an analysis of the civil war, its causes and consequences are important to understand the identity, existence and character of today’s United States of America. Cause of victory of North despite resistance of South The civil war that started between the Northern and the Southern states of America observed some fierce encounters. There were fierce resistances put up by the South ern state generals in order to save their confederation of states. The Union under the leadership of Abraham Lincoln sent the forces to capture the southern states as they differed from the policies of the Union. The resistance and fight put up by the southern generals like Robert Lee and Stonewall Jackson were brilliant in order to defend their cause and inflicted huge damage on the Northern states. Under the orders of Abraham Lincoln,

Conclusion Section of Thesis Essay Example | Topics and Well Written Essays - 2250 words

Conclusion Section of Thesis - Essay Example Over the past decade, use of addictive substances has infiltrated its way into the mainstream culture in certain countries. Younger people in particular seem to possess a skewed sense of safety about these substances, believing rather erroneously that they are safe and benign. Meanwhile, addictive substances are posing a serious threat to the health, social and economic fabric of families, communities, and countries. For many countries, the economic burden is relatively new, but growing quickly and unlikely to go away easily (Regidor, 2006). It is estimated that at least 20% of the American population suffers from some form of addiction. The total cost of addictive behaviors in terms of family disintegration, loss of labor productivity, illness, injury, and death reaches the staggering sum of $300 billions per year, making it one of the most serious socioeconomic problems facing society. Thus, prevention and treatment of drug addiction has been an important issue in the USA as well as worldwide for decades. While the individual patient, rather than his or her disease, is the appropriate focus of treatment for substance abuse, an understanding of the neurobiology of dependence and addiction can clarify the rationales for treatment methods and goals. Brain abnormalities resulting from chronic use of nicotine, stimulants (e.g., cocaine), opioids (e.g., morphine), cannabis (e.g., marijuana), alcohol, hallucinogens (e.g., phencyclidine), inhalants (e.g., toluene), and many other abused substances are underlying causes of dependence and addiction meaning intense substance craving and compulsive use. The abnormalities that produce addiction, however, are wide-ranging, complex, and long-lasting. They may involve an interaction of environmental effects, for example, stress, the social context of initial substance use, and psychological conditioning. Many factors, both individual and environmental, influence whether a particular person who