This case can illustrate auditing, financial accounting, legal, tax, and/or ethical concepts. Instructors may choose questions that best fit their course content. All of the financial accounting questions are pertinent in an advanced accounting class. Students should have access to the FASB's Accounting Standards Codification student version (http://aaahq.org/ascLogin.cfm) to complete the financial accounting questions. All of the auditing questions are appropriate for an introduction to auditing course. Likewise, all of the tax questions are useful in a tax research class. In addition, the tax questions could serve instructional purposes in the following classes:
The ethics and law questions are suitable for a business law class and have successfully contributed to principles of accounting and introduction to auditing classes. The case is applicable to both graduate and undergraduate classes.
The case questions and suggested solutions follow.
This case requires Accounting Standards Codification (ASC) research and use of the IASB's...