Accounting

Please prepare a research paper on the subject of the Foreign Corrupt Practices Act (FCPA) and answer or address the homework questions shown below. Your submission must be prepared in Microsoft Word using the APA General Format.  Submission must include four major sections: Title page, Abstract, Main Body, and References (Citations). Minimum of 3 references. Please address the following issues or questions: ·       Provide a brief explanation of the history of the Foreign Corrupt Practices Act (FCPA). ·       What is the primary purpose of the FCPA? ·       What does the FCPA prohibit? ·       To whom does the FCPA apply? ·       What is the maximum penalty under the FCPA? ·       What are indicators that an individual or organization may have violated the FCPA? ·       Explain why an activity considered “corrupt” in one country might be considered culturally acceptable in another. Please provide an example(s).

Note: The discussion activity is based on Case 24.1, It’s Not My Fault, on pages 1075–1076 of the textbook. 1. Read the case information given below, and then follow the instructions for completing the discussion activity. “Case 24.1, It’s Not My Fault” Cabinets, Inc. is a large manufacturer of modular kitchen cabinets, sold primarily to builders and developers. The company uses a standard cost system. Standard production costs have been developed for each type of cabinet; these costs and any cost variances are charged to the production department. A budget also has been developed for the sales department. The sales department is credited with the gross profit on sales (measured at standard costs) and is charged with selling expenses and any variations between budgeted and actual selling expenses. In early April the manager of the sales department asked the production department to fill a rush order of kitchen cabinets for a tract of 120 homes. The sales manager stated that the entire order had to be completed by May 31. The manager of the production department argued that an order of this size would take 12 weeks to produce. The sales manager answered, “The customer needs it on May 31, or we don’t get the business. Do you want to be responsible for our losing a customer who makes orders of this size?” Of course, the production manager did not want to take that responsibility. Therefore, he gave in and processed the rush order by having production personnel work overtime through April and May. As a result of the overtime, the performance reports for the production department in those months showed large, unfavorable labor rate variances. The production manager, who in the past had prided himself on coming in under budget, now has very ill feelings toward the sales manager. He also has stated that the production department will never again accept a rush order. 2. In Discussion Forum 5, post your response to the following questions. Please title your posting “Case 24.1/[Your Name].” Read and comment on your classmates’ postings. 1.  b. Identify any problem that you see in the company’s standard cost system or in the manner in which cost variances are assigned to the responsible managers. c. Make recommendations for changing the cost accounting system to reduce or eliminate any problems that you have identified.

Read the two attached articles, Wirecard Shares Tumble as Questions Remain After Special Audit (The Wall Street Journal, April 28, 2020, Paul J. Davies) and Ernst & Young Loses Two German Clients Amid Wirecard Scandal (The Wall Street Journal, Sept. 2, 2020, Patricia Kowsmann), then answer the critical thinking questions listed below. Note: ALL of these questions should be answered from a US perspective (although the client in question is a German company). Use the independence and evidence-related discussions we had in class, as well as Chapters 1 & 2 and Module B of your textbook, to guide your answers. Questions (20 points total): 1. (5 points) Write a short 1 paragraph summary of each article. 2. (5 points) While KPMG was conducting a special audit over the allegations made against Wirecard, the audit team ran into some issues relating to gathering sufficient appropriate evidence. a. Discuss one of these issues and explain how it impacts either the appropriateness (e.g., relevance or reliability) or sufficiency of the evidence. 3. (5 points) As an auditor, how would not being able to gather sufficient or appropriate audit evidence impact the final audit opinion? 4. (5 points) It can be argued that the independence of the EY audit team was impaired in this situation, which resulted in the team missing a material issue. Out of the threats to independence we discussed in class (adverse interest, advocacy, familiarity, financial, etc.), describe one you think was present in this case and why. Make sure to define the threat when you answer this question.

1. One of the first decisions a new company must make is whether to use a cash based or accrual based system of reporting. Explain three factors a company must consider when deciding which accounting method to use.  Discuss how each method would affect these factors.  If you were to open your own business, which reporting method would you choose? 2. You have been working long hours trying to calculate and prepare adjusting entries.  You have now decided this is too much work and you will not bother to prepare these entries in the future.  Discuss the purpose of adjusting entries, and whether or not you have made the correct decision.  Provide specific examples as to why or why not you believe this is the correct decision.

Research how manufacturing, merchandising, and service-sector companies differ from one another.

Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh Stallings, the CEO, who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh’s elite social circle; he boasted to Hugh that he knew some accounting tricks that could increase company income by simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy changed the debits from “rent expense” to “prepaid rent” on several entries. Later, Hugh got his bonus, and the deviations were never discovered. For this week’s discussion, please respond to the questions listed below. In addition to your initial response, for full credit, please be sure to respond to more than two other students’ initial responses, as well. Required Responses: How did the change in the journal entries affect the net income of the company at year-end? Who gained and who lost as a result of these actions?

A. Unit 9  1. Differences in operating income between variable costing and absorption costing are due solely to accounting for fixed costs. Do you agree? Explain. 2. Please answer the questions. 3. Explain how the Multimedia item supported or enhanced your answer. B. Unit 10 1. When using the high-low method, should you base the high and low observations on the dependent variable or on the cost driver? 2. Please answer the questions. 3. Explain how the Multimedia item supported or enhanced your answer.

Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity in financial reporting. A sound economy is contingent on truthful and reliable financial reporting. Instructions: Read the following scenario. Answer the questions that follow. This will be a 2-3 page submission in a question and answer format (also in paragraph form). An introduction and conclusion is not required. Refer back to your textbook for guidance on how to think through the scenario. You have been recently hired as an assistant controller for XYZ Industries, a large, publically held manufacturing company. Your immediate supervisor is the controller who also reports directly to the VP of Finance. The controller has assigned you the task of preparing the year-end adjusting entries. In the receivables area, you have prepared an aging accounts receivable and have applied historical percentages to the balances of each of the age categories. The analysis indicates that an appropriate estimated balance for the allowance for uncollectible accounts is $180,000. The existing balance in the allowance account prior to any adjusting entry is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new category. This will change the required allowance for uncollectible accounts from $180,000 to $135,000. Tactfully, you ask the controller for an explanation for the change and he tells you “We need the extra income, the bottom line is too low.” Required: In a 2-3 page paper, discuss the following: Consider what you have learned relative to ethics and financial reporting. What is the rationale for the calculations/process used to estimate the $180,000 uncollectible allowance? How do you think the misstatement of funds will impact the income statement and balance sheet? What is the ethical dilemma you face? What are the ethical considerations? Consider your options and responsibilities as assistant controller. Identify the key internal and external stakeholders. What are the negative impacts that can happen if you do not follow the instructions of your supervisor? What are the potential consequences if you do comply with your supervisor’s instructions? Who will be negatively impacted? Additional Requirements: Use at least one (1) quality academic resource (in addition to your textbook) for this assignment. (Textbook: Accounting Principles Volume I 13th Edition by Jerry J. Weygandt, Paul D. Kimmel, and Donald E. Kieso) Note: Wikipedia and similar websites do not qualify as academic resources.

Pick a large company that does business in your community and view their financial results. For the most recent year, list the amounts reported for sales, cost of goods sold, and total net income. Does the amount reported for revenue represent cash received from customers during the year? If not, what does it represent? Is your company a profitable company? How can you tell?

Write a  report of important information contained on your State Board of Accountancy website. If you are an international student, then select the state or territory of your choice. You may locate the website for your state or territory by going to AICPA.org.  Click on Advocacy > State > State Contact Info, then select your state or territory. Include the following in your report: 1. Specific educational requirements to sit for the CPA exam and, ultimately, to become a CPA; 2. Experience requirements; 3. Fees for CPA license and examination; 4. Information about ethics; 5. CPE requirements; and 6. Other information provided on the website.