Thursday, July 18, 2013

ACC 562 Assignment 1: Nextcard, Inc.

ACC 562 Assignment 1: Nextcard, Inc.
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ACC 562 Assignment 1: Nextcard, Inc. Week 3
Due Week 3 and worth 280 points
Read the case study titled ―Nextcard, Inc.‖ prior to doing this assignment. Write a four to five (4-5) page paper in which you:
1. Given PCAOB oversight of accounting firms and the AICPA Code of Conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity.
2. Analyze the fraud risk factors presented during the 2000 Nextcard audit and how each should have impacted the audit procedures.
3. In the Nextcard case, discuss how Ernst & Young’s motivation to destroy the audit work papers reconciles with its obligation to provide assurances to financial investors.
4. Assume the role of Oliver Flanagan in the case. Identify the actions you would have taken when Robert Trauger asked you to help him alter the 2000 Nextcard audit work papers. In answering this question, discuss alternative courses of action available to you.
5. Search the Internet for a public accounting firm that recently destroyed audit evidence related to a client. Identify the public accounting firm and evaluate the punishment that the firm received for the Professional Code of Conduct violation. Evaluate the severity of the punishment to determine whether you agree or disagree with the severity.
6. Use at least three (3) quality resources in this assignment.
Your assignment must follow these formatting requirements:
                            ·  Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
                            ·  Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are:
                            ·  Analyze the process and regulatory requirements for professional ethical decision making.
                            ·  Use technology and information resources to research issues in auditing.
                            ·  Write clearly and concisely about auditing using proper writing mechanics.

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