Intermediate Accounting Assignment- Financial Accounting Theory & Analysis Project
Based on your letter, you have been assigned a company that is known for violating Generally Accepted Accounting Principles (GAAP) by being involved in some element of an accounting scandal. For your assignment, review the scenario below:
Memo 1 Scenario: You are the controller for a profitable fictitious company. You have just hired two new members of the accounting team and will introduce them to the wonderful world of Accounting. In doing so, you will also ensure that they are aware of the implications of not adhering to established accounting standards and management's internal controls. To further stress your point, you will reference a company that has violated U.S. financial reporting practices and was pivotal in shifting the accounting and business world.
Note: This memo will precede a series of memos that will be incrementally submitted. At the end of the semester, the memos will transform into a paper that will be due at the end of the semester. Further instructions will be provided throughout the semester.
Instructions:
Research information about your assigned company.(healthsouth)
Memo Guide:
Memo Introduction:
• Begin the memo by acknowledging the purpose of the memo.
Memo Content:
For the body of the memo, provide the following information:
• Background information about the company (i.e. Company name, date of first operations, industry, CEO and owners, etc.)
• In your own words, summarize the core of the accounting scandal. Provide the timeframe and any monetary values that were disclosed as a result of the scandal.
• Describe the response to the scandal by the accounting profession, investors, creditors, lenders, and other stakeholders. Note: Be sure to reference regulatory, accounting professions, and boards that are mentioned in your textbook.
• Provide any additional information that you deem relevant.
Memo Conclusion:
• Conclude the memo by providing your thoughts on the scandal and how it has changed your perspective regarding your role as a future accountant and/or business professional. Also express the strong need for all in the accounting profession to uphold accounting standards and principles.