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Assignment: Part 1: The Quality of Financial Information
Referencing this week's readings and lecture, describe the quality issues related to reporting revenue. What is the importance of understanding various inventory valuation methods in determining the quality of reported profits?
Part 2: Conflicts with GAAP
Even though firms follow the accounting rules (GAAP) when presenting their financial statements, it is still possible for conflicts of interest to exist between what management wants investors and creditors to see and the economic reality of transactions. Explain how this can occur.
Part 3: Auditing
Auditors have come into a department as part of a company-wide audit prior to issuing an audit opinion for the company's financial reports. In a one- to two-page paper (not including the title and reference pages), explain what the staff should expect the auditors to do. Be sure to include the requirements of the Sarbanes Oxley Act in your explanation.
Your paper must be formatted according to APA style as outlined in the Writing Center, and it must include citations and references for the text and at least two scholarly sources from the University Library.
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