Existence of just four large cpa firms-service virtually

Assignment Help Financial Management
Reference no: EM13935105

The existence of just four large CPA firms that service virtually all of the major industrial and financial companies and thus dominate the accounting profession has led to criticism through the years.

What dangers do you see from the dominance of a few large CPA firms? What advantages?

During the 1980s and 1990s, mergers among the large public accounting firms reduced the Big 8 to the Big 5. The death of Arthur Andersen (because of the Enronscandal) reduced the number to four. One reason offered for the mergers was that they improved the ability of the merging firms to provide the broad array of consulting services that provided an increasing share of the revenues of the large accounting firms. What problems do you think intensified as public accounting firms earned an ever-larger share of their income from consulting?

Reference no: EM13935105

Questions Cloud

A preisedefinition of globalization is difficult : A preisedefinition of globalization is difficult, because globalization is a processwhich removes economic, social and cultural boundaries of nation states.Discuss this process. Do you think that globalization is a win-win situationfor all countries?..
What is the minimum number of shares : The shareholders of the Pickwick Paper Company need to elect eight directors. There are 200,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vo..
What was book debt-to-value ratio : In 2013 Caterpillar Inc. had about 654 million shares outstanding. Their book value was $33 per share, and the market price was $86.50 per share. The company’s balance sheet shows that the company had $19.7 billion of long-term debt, which was curren..
Identify each of the following statements : Identify each of the following statements with fixed costs or variable costs by writing fixed or variable in the space provided.
Existence of just four large cpa firms-service virtually : The existence of just four large CPA firms that service virtually all of the major industrial and financial companies and thus dominate the accounting profession has led to criticism through the years. What dangers do you see from the dominance of a ..
What is the return on debt : Marten Corp has a 14% WACC with a 19% expected return on equity and a 60% debt-to-asset ratio. If Marten pays no income tax, what is the return on debt? If the debt-to-asset ratio increases to 80%, now what is Marten’s WACC?
Substantial dividend or repurchase shares of stock : Residential Inc. produced substantial profits in the previous year. Assume that Residential pays 35% corporate income tax. If investors are taxed at 25% on ordinary income, and have 0% capital gains tax, would Residential’s common stock investors pre..
The obvious algorithm makes 2n - 2 comparisons : Given an array s =(s[1], s[2], . . . , s[n]), and n = 2^d for some d ≥ 1. We want to find the minimum and maximum values in s. We do this by comparing elements of s. (a) The "obvious" algorithm makes 2n - 2 comparisons. Explain.
Should the company record sales when orders are placed : should the company record sales when orders are placed or, to be consistent with GAAP, wait until orders are delivered?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Find the holding period return

The prices for the white swan corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for March.

  About the geometric return

Your grandfather invested $1,000 in a stock 47 years ago. Currently the value of his account is $318,000. What is his geometric return over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal plac..

  Global corporate social responsibility pyramid

Briefly discuss the four levels of corporate responsibility using Carroll's Global Corporate Social Responsibility pyramid.

  Difference in interest rate in europe with same currency

Why do we observe that European Countries post different interest rate while they are using the same currency, euro? Does this provide us to make an arbitrage profit? If it does, how does the market adjust to prevent it happening? Or, Can we simply n..

  More customers will want hot peppers

Elly's hot dog emporium is famous for its chilidogs. Elly's latest sales indicate that 25% of the customers ordering her chilidogs order it with hot peppers. Suppose 17 customers are selected at random. What is the probability that fifteen or more cu..

  Project that has initial after-tax outlay or after-tax cost

Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $190,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $40,000, $70,000 and $45,000. Geronimo uses ..

  Statements about term structure

Which of the following statements about term structure is(are) most correct?

  Sufficient funds to pay cash for entire construction project

Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $29 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay ..

  What is the firms earnings growth rate

The newspaper reported last week that Bennington Enterprises earned $34.15 million this year. The report also stated that the firm’s return on equity is 17 percent. Bennington retains 80 percent of its earnings. What is the firm's earnings growth rat..

  Cash flows shown below if the appropriate cost of capital

Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 9 percent. Time: 0 1 2 3 4 5 Cash flow: -155 -155 0 260 235 210 $503.73 $205.52 $206.53 $189.48

  Dividend per share-growth is expected to continue

Waller Co. (WAG) paid a $0.145 dividend per share in 2006, which grew to $0.309 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 14.5 percent?

  Calculate the price of a constant-maturity

Using a graph, comment on how well the market predicted the future moves of the spot 6-month rate on both dates and in general, are forward rates a good predictor of future interest rates?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd