Week 1 Cpa Report - 729 Words

Memo To: Outside CPA From: CC: Manager Date: April 25, 2011 Re: CPA Report Below I have summarized an explanation to the questions that came about during your examination of a subsidiary that has been set up as a corporation. †¢ The methodology used to determine deferred taxes. The deferred taxes reported are a temporary difference. The deferred taxes were calculated based on what needed to be reported versus what has been posted to the corporations’ books. The â€Å"temporary difference is the difference between the tax basis of an asset or liability and its reported (carrying or book) amount in the financial statements, which will result in taxable amounts or deductible amounts in future years† (Kieso, el. 2007,†¦show more content†¦The corporation and stockholders have the tax burden in a corporation. In whole, from the owners’ point of view, it is more sensible to form a corporation that has a little more flexibility and less liability versus a partnership or sole proprietorship. References Bline, D. M., Fischer, M. L., and Skekel, T. D. (2004) Advanced Accounting. Hoboken, NJ: Wiley. Kieso, D. E., Weygandt, J. J. and Warfield, T. D. (2007). Intermediate Accounting. (12th ed.). Hoboken, NJ: Wiley. Memo To: Manager From: Rebecca Carver Date: April 25, 2011 Re: CPA Report As stated by Schroeder, el. (2005), my professional responsibilities as a CPA include independence, scope of services, confidentiality, practice development, and differences on accounting issues. It is my responsibility to keep my professional judgment unbiased and base my opinions on factual information and to keep my personal interest separate from the clients work. It is my responsibility not to indulge any client with nonaudit services not relating to the financial audit. It is my responsibility to keep the clients information confidential and only report information that is deemed necessary for investors and outside users. It is my responsibility to not enter in to any advertisement that would be misleading or untrue. It is my responsibility to determine and discuss with the client any differences in accounting issues that related to how transactions areShow MoreRelatedHomework Assignment Week 11195 Words   |  5 Pagesï » ¿Homework Assignment Week 1 2-16 (Objective 2-6)  The following questions deal with auditing standards. Choose the best response. A. International Standards on Auditing are established by the: (2) International Auditing and Assurance Standards Board. B. Which of the following best describes what is meant by U.S. generally accepted auditing standards? (2) Measures of the quality of the auditor’s performance. C. The general group of U.S. generally accepted auditing standards includes a requirementRead MoreEssay on The Pros and Cons of being an Accountant1106 Words   |  5 Pagesfinancial reports. Some of the reports are the balance sheet, income statement, and tax returns. 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