- A government permits its employees to accumulate all unused vacation days and sick leave. Whereas (in accord with current standards) it may have to “book” a liability for the unused vacation days, it may not have to record an obligation for the unused sick leave. Explain and justify the applicable standards.
- When discussing g and fraud examination, what is the theory behind how assessment questions work? Please provide several examples of questions one might ask and why one might ask them. What is the investigator/questioner looking for?
- Earnings quality is defined as the degree of correlation between a company’s accounting income and its economic income. Earnings management is defined as the attempt by corporate officers to influence short term reported income. Explain and give a brief example of accounting terminology such as: a. Taking a bath; b. Cookie jar reserves; c. Improper revenue recognition.
- These costs can be measured indirectly by using costs incurred in similar circumstances or mirror image alternatives:
- Surrogates
- Externalities
- Future impacts
- Collateral damages
- Ethical costs