BUS1 121B – Intermediate Accounting II

Respond to the following prompts.  Please type using a word processing program. You may use all available resources to complete this case – e.g., lecture slides, notes, your book, and the Accounting Standards Codification.

For grading, I will focus primarily on the analysis and communication that you provide.  There is not necessarily a “right answer” that I will be looking for and I will not grade based on that your opinion, as long as it is well-justified and communicated.  Instead, I want to be able to follow your own accounting and ethical decision-making clearly and to be able to not just understand what your decision(s) should be, but also why you feel that they are best, considering the impact on ALL the entity’s stakeholders, including yourself.

Question 1 (25 points):

You are the Chief Financial Officer of a large public Silicon Valley corporation.  Your corporation regularly keeps a large amount of cash on-hand, in excess of $250,000, at several banks in order to meet payroll and vendor obligations.  With the sudden collapse of SVB and Signature Bank, you are suddenly concerned about the possibility of your corporation’s bank account suddenly being inaccessible or illiquid.  In addition, you are suddenly concerned about whether other investments your company has made, to keep its resources growing and valuable, are now as valuable as they were.

Using the ASC, discuss what accounting may be necessary for these situations.

Question 2 (50 points):

On June 28, 2022, the Securities and Exchange Commission (SEC) announced that it had charged Ernst & Young LLP (EY) for cheating by its audit professionals on the ethics component of Certified Public Accountant (CPA) exams and on various continuing professional education courses required to maintain licensure (https://www.sec.gov/news/press-release/2022-114).  EY also withheld evidence from the SEC when investigating the matter.  EY was not the first accounting firm to be charged with the SEC for cheating.  KPMG LLP was charged with altering past audit work and with receiving stolen information about inspections that would be conducted by the Public Company Accounting Oversight Board (PCAOB) and fined $50 million (https://www.sec.gov/news/press-release/2019-95).

Answer the following questions to the best of your ability, providing support for each:

  • Are ethics exams important?
  • Who, if anyone, is harmed by accountants cheating on ethics exams?
  • Who, if anyone, is harmed by accountants cheating to pass continuing education courses?
  • In general, is cheating bad, and why?

All papers are written by ENL (US, UK, AUSTRALIA) writers with vast experience in the field. We perform a quality assessment on all orders before submitting them.

Do you have an urgent order?  We have more than enough writers who will ensure that your order is delivered on time. 

We provide plagiarism reports for all our custom written papers. All papers are written from scratch.

24/7 Customer Support

Contact us anytime, any day, via any means if you need any help. You can use the Live Chat, email, or our provided phone number anytime.

We will not disclose the nature of our services or any information you provide to a third party.

Assignment Help Services
Money-Back Guarantee

Get your money back if your paper is not delivered on time or if your instructions are not followed.

We Guarantee the Best Grades
Assignment Help Services