Question: What famous U.S. Congressman resigned from Con For years 1 and 2, he had some external accoun gress in 2005 after pleading guilty to taking $2.4 tants prepare a compilation report. For years 3, million in bribes? 4 and 5 he had a different set of external account
a. Armstrong Williams tants prepare the compilation reports. The compi
b. William Jefferson lation reports state that the books are kept on an
c. Vernon Jackson accrual basis of accounting according to GAAP and
d. Peter Hartz that Property & Equipment is capitalized at cost and
e. Randy Cunningham depreciated using the straight-line method over the What would probably not be helpful in trying to find and prosecute someone for accepting bribes and kickbacks?
a. Audit right clause
b. Chain-of-custody
c. Duty to cooperate
d. Foreign Corrupt Practices Act
e. Trying to turn someone useful life of the property (Equipment 3 years, Furniture 5 years and Buildings 15 years).
Required: Analyze the information provided from the accountants and advise John on his business and which accounts, if any, that you would like more detailed information (investigate), what type of information you would like and why you want it. Be prepared to explain why you are requesting each piece of information for the specific time period (year) you are requesting it. Keep in mind that unnecessary additional accounts analyzed is a waste of your resources (time), but you should utilize your professional skills to analyze and advise John on his business. You should use all the financial analysis tools available to you (vertical, horizontal and ratio analysis, as well as calculations and estimations). One suggestion is to analyze related accounts when performing your analysis. For example, analyze the balance sheet account and the related income statement account together (accounts receivable and bad debts expense). Use the following spreadsheet, place the number 1 in the specific accounts and years that you would investigate and want more information for on the worksheet titled "Answers." All the accounts have been pre-filled with the number 0 to represent the account is OK until you change it (if needed - it is a waste of resources (time) to investigate an account that is OK). When finished, save the file to turn in, print out the "Answers" worksheet, and provide explanations as to why you would investigate each item.