week 6 discusion thread 2

Write 6 to 7 sentences for each question.

1) Why is it important from an auditing perspective that an auditor be required to adjust the financial statement amounts for some material subsequent events? If an auditor fails to live up to this standard, what is the potential liability exposure for the auditor?

2) Read the article on frivolous tax arguments at  https://www.irs.gov/site-index-search?search=tax+arguments&field_pup_historical_1=1&field_pup_historical=1

What do you find interesting or disturbing?

Dear Class,

One of the greatest things about online learning is how we can use the world-wide web to increase our learning potential. The amount of information on the internet is exponential! I highly recommend that you learn to tap this information source, but in doing so, I ask that you use good business and educational practices in quoting and citing your sources.

Here are some IMPORTANT rules and considerations to use when using web-research in your thread posts in my class!

· DO include the URL (web address) that you took the information from. (Hit enter after pasting in the URL and it will become a hyperlink to the source for other students.)

· DO include quotation marks or <<>> around quoted (i.e. copied and pasted) material.

· DO introduce the quoted material with YOUR OWN WORDS about why you are providing that quotation.

· DO limit the quoted material to a paragraph or less (a snippet) to entice the reader into following the URL (link) you then provide.

· DO use an 80/20 rule of thumb for posting that is, for every sentence of quoted material, you should give us at least 4 sentences from you. AT LEAST give us a few sentences to orient us to why this quote is appropriately contained in your post. Worst case: use a 50/50 rule but in no event should you simply copy and paste in paragraphs from a website with no orienting material from you. As the % of your words to quoted material decreases, so too will the value of the post decrease.

What will I do if you “copy and paste” from a book or website, in contradiction of the above guidelines?

1. If the problem is simply that you have “too much” copy and paste, but you have included the URL, this will affect the “quality” of your post-and your post will likely be a “low quality” post. Avoid this problem by only providing a “snippet”-i.e. 2-3 sentences of quoted material…and then provide YOUR OWN WORDS about why that is important. INCLUDE the URL!

2. If you do not include a cite to the website or book from which your post information came, OR if you do not use quotation marks or some other method to show that the material was not written by you, then the issue will become one of Academic Integrity and I am required to turn it into the committee, subject to the rules on Academic Integrity in the student handbook.

Please let me know if you have questions about this class policy.

1. Why is it important from an auditing perspective that an auditor be required to adjust the financial statement amounts for some material subsequent events? If an auditor fails to live up to this standard, what is the potential liability exposure for the auditor?

If the auditor is aware of a subsequent event that would change the reader’s or investor’s mind about the company and its financial statements, that subsequent event must be disclosed. Typically, such events have a direct effect on financial statement amounts. For example, the post-balance sheet date collection of a material receivable that had been written off at the balance sheet should lead to eliminating the write-off because the auditor knows prior to the issuance of the financial statements that the write-off is wrong and receivable balance is higher. On the other hand, some subsequent events do not affect the balance sheet amount but provide important information about the account at that date. An example of such a subsequent event would be for a manufacturing firm that had a fire destroy its manufacturing plant on February 10. Although the financial statements may present a fair representation as of December 31, a reader has the right to know that continuity of business has been threatened due to a fire at the plant.

2) Read the article on frivolous tax arguments at  https://www.irs.gov/site-index-search?search=tax+arguments&field_pup_historical_1=1&field_pup_historical=1

What do you find interesting or disturbing?

What is interesting is that the article is providing a feedback to common frivolous tax arguments made by various groups and individuals. These arguments relates to their lack of full compliance to the taxation laws as stipulated by the Fed. The paper list the contraventions or frivolous argument that provides the response which is basically a rejection of each of the arguments. The authority should have given the reason why their stand on compliance to federal tax laws is not accurate but instead is openly rejecting the frivolous arguments. The paper goes ahead to even mention the penalties for failing to comply.