Share
Explore BrainMass

The Role of Government and Regulation

Research the Sarbanes-Oxley Act and read about the debate that led up to its passage. Based on your research: a. Is there consensus on whether Sarbanes is good law? b. What did you read about those who have influenced accounting regulation in the past? c. Can you name the important players in accounting regulation before Sarbanes? After Sarbanes? What has changed?

Research the Sarbanes-Oxley Act and read about the debate that led up to its passage. Based on your research: a. Is there consensus on whether Sarbanes is good law? b. What did you read about those who have influenced accounting regulation in the past? c. Can you name the important players in accounting regulation before

Summarize the legal characteristics of personal property, real property, and bailmentsSummarize the legal characteristics of personal property, real property, and bailments. Eve and Frank own twenty acres of land on which there is a warehouse surrounded by a fence. What is the most important factor in determining whether the fence is a fixture? The most important factor in determining whether an item is a fixture is the intent of the owners. Other factors include whether the item can be removed without damaging the real property, and whether the item is sufficiently adapted so as to have become a part of the real property. If removal would irreparably damage the property, the item may also be considered a fixture. Sam owns an acre of land on Red River. The government dams the river. A lake forms behind the dam, covering Sam's land. Does the government owe Sam anything? If so, what? If not, why? The government can take private property for public use (a "taking"), but it cannot do so, under the Fifth Amendment to the Constitution, without paying the property owner just compensation. In some cases, to obtain title, a condemnation proceeding is brought before the property is taken. In a separate proceeding, a court determines the property's fair value (usually market. value) to be paid to the owner.

Summarize the legal characteristics of personal property, real property, and bailments. Eve and Frank own twenty acres of land on which there is a warehouse surrounded by a fence. What is the most important factor in determining whether the fence is a fixture? The most important factor in determining whether an item is a f

Phoenix city workers earned $500,000 in salary during the year

Phoenix city workers earned $500,000 in salary during the year. General government accounted for $200,000 public safety accounted for $200,000, park and recreation accounted for 100,000. At the end of the year the salaries payable balance was $15,000. Show the impact of each transaction on the fundamental equation of account

Roman Co., in preparation of its December 31, 2010, financial statements, is attempting to determine the proper accounting treatment for each of the following situations. 1) As a result of uninsured accidents during the year, personal injury suits for $350,000 and $60,000 have been filed against the company. It is the judgement of Roman Co's legal counsel that an unfavorable outcome is unlikely in the $60,000 case but that an unfavorable verdict approximating $250,000 will probably result in the $350,000 case. 2) Roman Co. owns a subsidiary in a foreign country that has a book value of $5,725,000 and an estimated fair value of $9,500,000. The foreign government has communicated to Roman Co. , it's intention to expropriate the assets and business of all foreign investors. On the basis of settlements, other firms have received from this same country, Roman Co. expects to receive 40% of the fair value of it's properties as final settlement. 3) Roman Co.'s chemical product division consisting of five plants is uninsurable because of the special risk of injury to employees and losses due to fire and explosion. The year 2010 is considered on of the safest in the division's history because no loss due to injury or casualty was suffered. Having suffered an average of three casualties a year during the rest of the past decade (ranging from $60,000 to $700,000), management is certain that next year the company will probably not be so fortunate. a) Prepare the journal entries that should be recorded as of December 31, 2010, to recognize each of the situations above. b) Indicate what should be reported relative to each situation in the financial statements and accompanying notes. Explain why.

Roman Co., in preparation of its December 31, 2010, financial statements, is attempting to determine the proper accounting treatment for each of the following situations. 1) As a result of uninsured accidents during the year, personal injury suits for $350,000 and $60,000 have been filed against the company. It is the judgeme

Foreign corrupt practices act

Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise. Recently, Emily and Richard have invested in Faster Distribution Company Incorporated, a small publicly trade

European regulators have actively and vigorously cutting company bonuses in light of the current global economic recession. Although some government-related entities in the USA are being subjected to bonus caps, many are moving ahead with discretionary bonuses. Are these defensible in light of an economic recession? Or, are they important to attract and retain talent that will help companies quickly recover from the economic morass?

European regulators have actively and vigorously cutting company bonuses in light of the current global economic recession. Although some government-related entities in the USA are being subjected to bonus caps, many are moving ahead with discretionary bonuses. Are these defensible in light of an economic recession? Or, are

Several private and public sector organizations are associated with the profession. Listed below are activities pertaining to these organizations. 1. License individuals to practice as CPAs. 2. Promulgate GAAP. 3. Issue Statements on Auditing Standards. 4. Regulate the distribution and trading of securities offered for public sale. 5. Establish its own code of professional ethics. 6. Issue Statements of Financial Accounting Standards. 7. Impose mandatory continuing education as a requirement for renewal of license to practice as a CPA. 8. Issue disclosure requirements for companies under its jurisdiction that may exceed GAAP. 9. Issue auditing interpretations. 10. Cooperate with the AICPA in areas of mutual interest such as continuing professional education and ethics enforcement. 11. Take punitive action against an independent auditor. 12. Establish accounting principles for state and local governmental entities. 13. Establish GAAS. 14. Suspend or revoke a CPA's license to practice. 15. Establish quality control standards. 16. Operate as proprietorships, partnerships, or professional corporations. 17. Issue government auditing standards. 18. Administer federal tax laws. Required Indicate the organization or organizations associated with each activity.

Organizations associated with the public accounting profession Several private and public sector organizations are associated with the profession. Listed below are activities pertaining to these organizations. 1. License individuals to practice as CPAs. 2. Promulgate GAAP. 3. Issue Statements on Auditing Standards.

Many corporations and government entities have an internal auditing function and a separate fraud investigation function either as a subunit of internal auditing or security or as a separate unit within the organization. In addition, many accounting and consulting firms have a forensic, investigation, and litigation support services. The financial forensic investigation techniques and procedures used both within an organization as well as within a professional service firm can come in different ways. For example, some forensic techniques for analyzing financial statements are common for financial auditors, fraud auditors, forensic accountants, and investigators. Other techniques, such as using behavior detection methods and interviewing methods, are primarily used in specific fraud investigation engagements. Please post an answer to the following questions. Support your answers with academic or real life criminal justice examples to accentuate your point. In your opinion, are internal controls an effective way to protect organizations of internal and external fraud? Why? Do you think that it is a wise investment to contract services that provide security against fraud or should it be an in-house department that provides fraud security services? Why?

Many corporations and government entities have an internal auditing function and a separate fraud investigation function either as a subunit of internal auditing or security or as a separate unit within the organization. In addition, many accounting and consulting firms have a forensic, investigation, and litigation support serv

Current tax law regarding capital gains

Capital Gains Discuss whether or not you believe the current tax law related to capital gains is fair. If you could change one (1) thing related to the regulation for capital gains, what would it be and why?

The new employees will be doing their first audits of the 2008 financial statements. In 2008, many businesses lost asset value as a result of a decline in market activity and asset value. A discussion arose in the financial and accounting community regarding mark to market or fair value accounting. The auditors need to have an understanding of what this means and how they should evaluate the assets of a business. Discuss the following: Define and explain fair value accounting and historical accounting. Compare fair value accounting and historical accounting to each other as well as their impact on the balance sheet. Give your opinion about using fair value accounting in a down market. Part II In the fall of 2008, the United States suffered massive corporate failures causing a financial meltdown. These corporate failures had a shock-wave effect on the banking industry, U.S. financial giants, and U.S. corporations that quickly spread around the globe. The banking, financial, and, eventually, U.S. automotive industry asked the government for help. The United States responded to the financial and banking industries very quickly with the Troubled Asset Relief Program (TARP). The use of the resulting bailout money was amazing. The questions and blame surrounding 2008 economic failure, as well as the congressional relief, will be discussed for years. Consider the history of regulations in the United States and the probability of new regulations on the financial markets resulting from the 2008 economic collapse. Answer the following questions: What do you think are the 2 main causes of the 2008 economic collapse and why? Support your opinion with facts. What might some new regulations be, and what would be the purpose of the regulations? Do you think new regulations are needed? Why or why not?

Part I The new employees will be doing their first audits of the 2008 financial statements. In 2008, many businesses lost asset value as a result of a decline in market activity and asset value. A discussion arose in the financial and accounting community regarding mark to market or fair value accounting. The auditors need to

Rate Regulation

Please list and discuss the three main categories that private insurance in the U.S. is classified into.

Government to Fund Accounting

Please help with a government to fund accounting question. Through what tool or method is the conversion of government accounting statements accomplished? And alternately, how is it not accomplished?

Governmental reporting of public information

Accountability information can be used to support decision making, but it also fulfills the citizenry's right to know how public resources have been spent. What kind of information would be useful for citizens to feel that government is spending money appropriately?

Regulation of Ethics: Microsoft's Corporate Governance System

Many professionals believe it is impossible to regulate ethics. Yet the SEC and other federal agencies provide rules, regulations, and laws surrounding corporate governance. How effective are the legal processes in regulating corporate governance? Provide an example. Several laws, most recently Sarbanes-Oxley, have provided p

Fund-Basis to Government-Wide Accounting

You are going from fund basis to government-wide. The government wide statements are separated into governmental activities and business-type activities. So, list type of fund statement for this one, summarize what must be adjusted to â??changeâ? it into government wide statement. *Proprietary Funds Need citations

Revenue for Government, Not-for-Profit; Method of Accounting

1. Name and describe the many types of revenue nonprofits and governments generate. 2. Talk about the use of modified accrual accounting in governments - why? How is revenue recognized under modified accrual accounting? 3. One of your problems deals with property taxes - what are the specific requirements for property tax

Government and Not-for-Profit accountability in financial reporting

Most of your average governmental entities engage in three broad categories of activities/funds: 1. Governmental activities - stuff financed mostly with taxes and intergovernmental grants; these correlate with governmental funds. There are five types of these: a. General fund - resources not restricted. b. Special revenu

Are more regulations needed? Why or why not?

The new hires will be involved in gathering corporate information for audits. They will need to make decisions on corporate responsibility based on regulations. As the manager, you feel corporations don't need to be regulated. You believe the market will take care of itself because poor management is what causes companies to eve

Problem 9-10 Contingent Liabilities Several independent items are listed for which the outcome of events is unknown at year end. a. A company offers a two year warranty on sales of new computers. It believes that 4% of the computers will require repairs. b. A company is involved in a trademark infringement suit. The company's legal experts believe that an award of $500,000 in the company's favor will be made. c. A company is involved in an environmental cleanup lawsuit. The company's legal counsel believes that the outcome may be unfavorable but has not been able to estimate the costs of the possible loss. d. A soap manufacturer has included a coupon offer in the Sunday newspaper supplements. The manufacturer estimates that 25% of the 50c coupons will be redeemed. e. A company has been sued by the federal government for price fixing. The company's legal counsel believes that there will be an unfavorable verdict and has made an estimate of the probable loss. Required: 1. Identify which of the items (a) through (e) should be recorded at year-end 2. Identify which of the items (a) through (e) should not be recorded but should be disclosed in the year-end financial statements.

Problem 9-10 Contingent Liabilities Several independent items are listed for which the outcome of events is unknown at year end. a. A company offers a two year warranty on sales of new computers. It believes that 4% of the computers will require repairs. b. A company is involved in a trademark infringement suit. The

Two fundamental principles of the U.S. system of government

1. The Legal System and the Medical Environment Create two to three paragraphs for each following, in your own words: o Provide a description of the two fundamental principles on which the U.S. system of government was founded: federalism and checks and balances. o Provide a description of each of the sources of law in th

Discussion Questions: Money markets, junk bonds, risk, regulation, investments

See attached file. * It is often said that money markets are not used to get rich, but to avoid being poor. Do you agree or disagree with this statement? Provide support for your opinion. Which markets do you prefer? Explain why. * Why are junk bonds perceived as offering high returns with high risk? Which of the numerou

Regulation: Echoes of the Shenanigans cases in more recent horror stories?

One of the major purposes of SEC regulation, FASB, GAAP, and the attest (public company audit) business is to represent financial situations "fairly". With all this regulation and mandated reporting, WHAT HAPPENED OVER THE PAST FOUR YEARS? Have we seen echoes of the Shenanigans cases in more recent horror stories?