ANSWER AT LEAST ONE FROM EACH GROUP

Accounting Theory

1. In terms of theoretical foundations, how do you compare accounting to other disciplines such as economics, physics, mathematics, etc.?

2. Discuss three major challenges facing fair value accounting practices and their implications to the future fair value accounting.

3. Assuming the above challenges to fair value accounting were solved, why would you prefer fair value accounting over historical cost accounting?

4. Explain why we would not need an income statement if everything was accounted for under the fair market value system.

Accounting Practice

5. As a controller, discuss three risks and three advantages you will consider before moving your companys accounting function to the cloud.

6. As a new controller, describe with reasons, three reports you will want to receive from your subordinates immediately after you are hired. Also, describe with reasons, three management reports that you will prepare more frequently (perhaps weekly).

7. What is the difference between the accounting function and the accounting department? How are these two evolving?

8. Based on the Quickbooks project we did in class, as a controller for Green Landscape, point out to the owners any: a) two businesses risks, and b) two accounting risks their business faces. Also, advise them on how to minimize the potential dangers from EACH of these risks [Creating a table with one column for the risks and other for solutions is suggested but not a required format]. Examples include but are not limited to using desktop versus online QB, customer concentration, financial ratios, etc.

Quality Assurance

9. The information market left on its own cannot produce optimal quantity and quality of accounting information. Explain the basis for this statement. (Note that each point of discussion on moral hazard, unanimity, etc. should be framed in the accounting information context.)

10. List and explain at least three remedies societies take to improve on the quality and quantity of accounting information or discuss at least three things SOX did or introduced to minimize information asymmetry effects.

11. What is the efficacy of the remedies applied to increase the quantity and improve the quality of accounting information? [Hint: framing your answer in ethics and fraud frameworks will help.]

12. Explain the linkages between internal controls, internal auditors, external auditors, and controllers.

13. In your opinion, how would you apply SOX to the Hammel case? That is, how would SOX deal with the governance of Orthofix International N.V.

14. Explain how internal auditors operate within the corporate governance framework. That is, who they are compared to external auditors; what they do; who they report to; limitations they face; why some companies do not use them, etc.

Dissemination of Accounting Information

15. Who loses and who gains [discuss at least two losers and two gainers] after the private company financial accounting standards are introduced and adopted?

16. Would you consider the small companies GAAP popular among its targeted audience? Explain.