ARBC 106b Lecture Notes - Lecture 1: Work From Home, Antivirus Software, Absenteeism

Assume a land development company hired an engineer and architecture firm to conduct a feasibility study on a potential land purchase. The report indicated that the land was suitable for development. Later, zoning requests are denied and the land development firm sues the engineer and architecture firm for negligence, breach of contract, restitution, and reliance.

A forensic accountant is hired to provide a valuation for losses and serve as an expert witness in court to support these findings. How would a forensic accountant demonstrate professional care, objectivity, and integrity in performance of the engagement? How might this impact the ability to obtain sufficient evidence or data to support his or her opinion?

Elaine is an accountant for Randolph Corporation. She telecommutes and works mainly from her home in Cleveland, Tennessee. Twice a month she travels to Alpharetta, GA meetings at the corporate office. In which state’s payroll factor should Elaine’s compensation be included if:

a) Elaine is an employee and is covered by the qualified retirement plan of her Georgia-based employer?

b) Elaine works as an independent contractor for several clients, including the Georgia-based firm?

c) Elaine is an employee, and for one day each month, she provides accounting services for Randolph’s rental client located in Tennessee?

I need help with the rationales.

Part A: Accounting Specializations

Evaluate the following activities and functions and align themwith the accounting specializations below, providing a detailedrationale for the alignment.

Audit activities focusing on efficiency.

Specialists in physical evidence indicating fraud.

Independence from the organization receiving the service isrequired.

May be involved with accomplishing a company's SOXrequirements.

May be involved with assessing whether ICFR operateseffectively.

Service is based on inquiry and analytical procedures.

Findings from activities are expected to be used as evidence incourt.

Uses procedures such as inquiry, document inspection, andreperformance.

Accounting specializations:

An accountant working for a public accounting ?rm performingaudits and quarterly reviews of public companies.

An accountant working for a public accounting ?rm providingaudits and reviews of nonpublic companies.

An accountant working for the GAO.

An internal auditor working for a public company.

A forensic accountant.