5. The confidentiality agreement did limit the scope of the audit performed on ZZZZ Best. It is the job of the auditor to obtain sufficient and appropriate evidence. When Ernst & Whinney were not allowed to follow-up with anyone involved in the restoration process that limited their ability to gather evidence. The company should have been able to follow up with all venders and customers to attest to the validity of the financial statements and they were not able to do this and not able to gather the “appropriate and sufficient evidence” needed.
The owner is held personally liable for any debts or obligations of the business and liabilities of any of its employees. Stock cannot be sold in the business and banks are hesitant to lend because of lack of credibility when it comes to repaying if the business fails, so raising money can be tough. * Income Taxes: The owner and the business are one in the same so the business is taxed collectively with the owner’s income. It is the responsibility of the owner to report income, losses and expenses in their personal tax form. * Longevity or continuity of the organization: The life of the business is limited to the life of the owner.
Establishment of Responsibilities: By assigning only one person for handling of the checks as well as the processing of them, it provides a dafeguard against theft or errors. When only one person open the mail, it is not sure about all incoming checks are forwarded to the cashier. Therefore, one person should prepare the list of checks so that can be compared with daily cash summary. It makes sure that all checks on the lisst were deposited. All mail receipts should be opened in the presence of two mail
The business claimed that the highly advertised delay to deposit the check was not a solicitation to make a loan. These payday lenders required the consumer to sign a statement saying that they had the funds in their account to cover the check, even though they were verbally told otherwise by the lender. The payday lenders claim that they are not making loans but that their customers are simply paying a high fee because of the convenience of cashing a check at their store. This was a feeble excuse with the presence of banks and ATMs throughout the area, why would someone pay a high fee to cash a check? Finally, the last method used to get through the legal requirement of the North Carolina Consumer Finance Act has been the claim that the payday lender is really an out of state bank and that they are exempt from North Carolina law.
She was an older lady that just wanted to financially help out friends and family. A gain of only two-thousands dollars certainly does not seem like she was motivated by financial gain. The fact that Griffin committed fraud against the IRS gave her the benefit of a delayed prosecution. These fraudulent tax credit were processed in 2009. It took almost two years to discover the wrongdoings.
Banks weren’t always consider too big to fail, mostly because no one believed that a bank would ever fail. During the Depression, hundreds of banks became insolvent and depositors lost their money. In this time banks were allowed to fail because there were no regulations. As a result, the U.S. enacted the 1933 Banking Act, sometimes called the Glass-Steagall Act, which created the Federal Deposit Insurance Corporation (FDIC) to insure deposits up to a limit and prohibited banks from selling and buying securities from their costumers or selling mutual funds. In exchange for the deposit insurance provided by the federal government, depository banks are highly regulated and expected to invest excess customer deposits in lower-risk assets.
Just like a bank account, if you can see on-line where your money is going then you can better avoid overdrawing your account. For your credit report, if you can see when a negative remark hits your credit report you can make sure to fix it so that it does not report negative again. If a fraudulent remark is reported on your report then you can also dispute the claim sooner so that it doesn’t affect your report long term. Consumers have the right to know exactly what is being told about them from business to business. If it is going to affect their lives in such a great way then they should be allowed to view their report free of charge any time they
Approximately $2,000,000 of requests for reimbursement were routinely processed and charged to LEA. Accounting personnel were advised by the controller to process such requests based on the individual approval of any of the three executives, even when the requests were not adequately documented. The vice president-public relations and his department were in charge of political fundraising activities. The task force determined, however, that only a small portion of the $1,000,000 raised last year was actually used for political purposes. In addition, departmental resources were used for personal projects of the three identified executives.
The patients were required to pay for the elective procedures up front and the payments were to be made to the cashier. Despite Lee’s generous earnings and prominence at his practice, he devised a sales skimming scheme in which he embezzled $200,000 from the practice over a four-year period. Lee collected payments from his patients without reporting the receipts or the surgeries to his partners. The skimming scheme was accidentally discovered when Rita Mae Givens, one of Lee’s patients realized her insurance policy might cover her procedure and contacted the office to request a billing statement. The clinic staff quickly ascertained there was no documentation of services rendered or payments reflected on Ms. Givens’ accounts.
If a CPA or CPA firm first serves as a consultant then as the given entity’s auditor, it is auditing its own work. In that way, nobody else is actually going to check whether a certain accounting treatment is compliant with GAAP. Different opinion resulted from different understanding about an issue would not be raised. Moreover, generally speaking, human beings are reluctantly to admit their mistakes. The CPA or CPA firm would at least have reputational interest in the financial report that it “managed”.