Purchase Solution

Public Accounting Profession - Negotiations

Not what you're looking for?

Ask Custom Question

Like most young professionals, earning a reasonable livelihood ranked as a top priority for Scott Fane, a CPA specializing in taxation services who relocated to Florida in the mid-1980s. To practice as a CPA in Florida, Scott Fane registered with the Florida Board of Accountancy, which regulates the public accounting profession within the state of Florida. Scott Fane soon butted heads with that state agency. A protracted legal battle ensued. In 1993, the young CPA and the Florida Board of Accountancy finally settled their differences in the hallowed chambers of the U.S. Supreme Court.

QUESTIONS:

1. In a professional services context, "lowballing" refers to the practice of underpricing one's competition to obtain clients. Identify the advantages and disadvantages of lowballing within the public accounting profession. Also identify the parties who benefit from this practice and the parties it harms.

2. Comment on the advantages and disadvantages of professions being regulated at the state, rather than federal, level.

Purchase this Solution
Solution Summary

The solution discusses negotiation tactics and the advantages and disadvantages.

Solution Preview

I am not a CPA, but do have a lot of experience in the accounting field and a lot of experience in the professional services industry.

1. Advantages of "lowballing" in an industry such as accounting are few in my opinion. I think that obviously, you may win contracts or bids, and may bring in more money in the short term. The problems, though, outweigh the advantages for many reasons. First, you tend to alienate yourself in an industry like this by undercutting. CPAs are often on state, local, and federal governmental ...

Purchase this Solution
Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • incremental commercialization

    Identify examples of incremental commercialization within the public accounting profession in recent years. How, if at all, has an increasing emphasis on the commercial aspects of public accounting affected the profession?

  • This post addresses the accounting profession & public trust

    402284 accounting profession policing itself It is obviously in the best interest of the accounting profession to have a strong level of public trust. To that end, do you feel the profession goes far enough in policing itself?

  • Accountants and their duties

    Which would you choose as the key idea for ethical behavior in the accounting profession: "Protect the public interest" or "Protect the credibility of the profession." Why?

  • major challenges facing the accounting profession

    There are other challenges that SOX has thrown at the accounting profession. It has become necessary for the public accounting firm to comment on the internal controls of the firms.

  • Auditing: Government Regulating CPA Profession

    128382 Auditing: Government Regulating CPA Profession 1. How much should the government regulate the CPA profession? 2. Given the recent accounting scandals, how much confidence should the public really have in financial audits?

  • Discuss how globalization has changed the role of a certifie

    Discuss how either the convergence or adoption of International Financial Reporting Standards (IFRS) will impact the public accounting profession in the United States.

  • Public Accounting Profession

    135252 Public Accounting Profession In their review of the public accounting profession, Lou Harris and Associates warn that an audit report too often is viewed as a "certificate of health" for a company: The report states: The most serious consequences

  • Organizations associated with the public accounting professi

    421549 Match organizations associated with the public accounting profession's actOrganizations associated with the public accounting profession Several private and public sector organizations are associated with the profession.

  • Professionalism in Accounting

    public accounting industry.

View More Related Solutions