Assignment: ACCOUNTING PAPER
Facts: You are now a supervisor at a mid-size CPA firm. You prepare the tax returns for a company called Rust & Marty, LLC DBA Yellow King "the Company". In addition, you prepare a calendar year end audit for Yellow King.
The Company is a privately owned LLC, requiring an audit for a bank they finance with and who provides the company a Line of Credit. Marty and Rust are not related but have been friends and business partners for years.
Unfortunately, business has been bad and the company has run loses the last two years. The company will most likely file for Chapter 7 bankruptcy. As such, Rust and Marty had a falling out. Now Rust is suspicious that Marty is stealing money from the company.
Rust has personally asked our firm to perform a "forensic" analysis of the company to see whether Marty has been stealing money. During the analysis we found that Marty was running personal expenses through the company.
Discuss the professional standards pertaining to the tax preparation, audit and forensic services. Additionally, analyze the CPA's duties to Yellow King, Marty and Rust. Focus on the fact Yellow King is our client and we are performing services for Rust. By performing these duties has our firm violated any laws (common law and statutory) or violated our ethical duties?
I will provide 1 point of extra credit if you can name the reference for the "Yellow King" reference.
DIRECTIONS: Discuss the professional standards pertaining to the tax preparation, audit and forensic services. Additionally, analyze the CPA's duties to Yellow King, Marty and Rust. Focus on the fact Yellow King is our client and we are performing services for Rust. By performing these duties has our firm violated any laws (common law and statutory) or violated our ethical duties?
Like assignment #2, use the AICPA standards to determine what course of action needs to be taken. Analyze the facts accordingly and be sure to apply the facts to the rules found in the standards.
Text Book: Mintz, Ethical Obligations and Decision Making in Accounting: Text and Cases, Fourth Edition, McGraw-Hill Irwin. ISBN-10: 1259543471 ISBN-13: 978-1259543470.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.