ACC 305 Week 1 DQ1 - Research Case 1-3, Ethics Case 1-8
Research Case 1-3 The purpose of this
case is to introduce you to the information available on the website of the Financial Accounting Standards
Board (FASB).
Required:
Access the FASB home page on the Internet. The web address is www.fasb.org. Answer the following
Access the FASB home page on the Internet. The web address is www.fasb.org. Answer the following
questions.
1. Describe the mission of the FASB.
2. Who are the current Board members?
Briefly describe their backgrounds.1. Describe the mission of the FASB.
3. How are topics added to the FASB’s technical agenda?
Ethics Case 1-8 It is the responsibility of management to apply accounting standards
when communicating with investors and creditors through financial statements.
Another group, auditors, serves as an independent intermediary to help ensure
that management has in fact appropriately applied GAAP in preparing the
company’s financial statements. Auditors examine (audit) financial statements to
express a professional, independent opinion. The opinion reflects the auditors’
assessment of the statements’ fairness, which is determined by the extent to
which they are prepared in compliance with GAAP.
Some feel that it is impossible for an auditor to give an independent opinion
on a company’s financial statements because the auditors’ fees for performing
the audit are paid by the company. In addition to the audit fee, quite often
the auditor performs other services for the company such as preparing the
company’s income tax returns.
Required:
How might an auditor’s ethics be challenged while performing an audit?
How might an auditor’s ethics be challenged while performing an audit?
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