Question

research and locate an article from any professional literature within the auditing industry during the past year.

Write an executive summary of what is contained in the article. The format should be as follows and should not be more than one to two pages in length:

• Summary of information contained within the article.
• Explanation as to why the article you chose has relevancy to the accounting environment.
• Attach a copy of the article or link to the article to the executive summary.
• Make sure your article relates to auditing.
• Papers should utilize 12 point Times New Roman font and use justified settings.

Answer 1

The increasingly complex environment facing professional accountants, whether in public practice, industry, or government, often presents problems requiring the in-depth consideration of numerous and complex accounting and auditing issues. Resolving complex accounting and auditing issues requires professional judgment and a thorough consideration of each problem. The practitioner must know where to look for answers, and which sources have authority over others.

Numerous sources of authoritative information are available to CPAs conducting in-depth research into complex accounting and auditing issues. These sources include reference services for: Financial Accounting Standards Board (FASB) accounting standards; American Institute of Certified Public Accountants (AICPA) Technical Practice Aids; and various computer databases. FASB accounting standards consist of two volumes: Original Pronouncements and Current Text. The information in the two volumes of AICPA's Technical Practice Aids includes the Technical Information Service, a compilation of practical questions and answers; Statements of Position of the Accounting Standards Division; and Practice Bulletins of the Accounting Standard Executive Committee. The computer databases that are available include VSCOM, a cost accounting system; NAARS, financial statements from over 4,200 annual reports; and the Business Periodicals Index

There has been some confusion regarding the use of the Professional Standards. It includes section numbers in place of original pronouncement numbers. For example, SAS No. 39, "Audit Sampling," is listed as AU Sec. 350. The use of section numbers facilitates indexing. The indexing system provides for referencing specific sections within a section. For example, AU Sec. 350.03 refers to the third paragraph of Sec. 350. Also, the auditing Interpretations are numbered in the 9000s, and the last three numbers specify the SAS section to which the Interpretation relates. For example, AU Sec. 9642 indicates that the Interpretation concerns AU Sec. 642.

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