questions about accounting today

Author's note: It is felt that these review questions might best be covered in the context of a tutorial/classroom discussion, so the suggested solutions can all be found in the instructor's Manual. 19.1A Electronic spreadsheets (such as Microsoft Excel) are extensively used by accountants today and have been for decades. With reference to some of the various topics covered in this book, can you suggest some specific purposes for which accountants might use spreadsheets? 19.2A There have been several high-profile scandals in accounting in recent times, which have contributed to the raised profile of ethics and integrity in accounting. The details of many of these scandals might be difficult to understand at this stage in your studies. However, search online for 'WorldCom scandal 2002' and read about what happened in that case. Can you relate a key element of the WorldCom affair to one particular chapter in this book? 19.3 A There is now growing disapproval from some sections of the public of the elaborate tax planning arrangements that tax advisers at some accounting firms have recommended to their clients. These arrangements may be entirely legal, but are often highly complex schemes that exploit loopholes in the legislation. Critics argue that they go against the spirit, if not the letter, of the law. In response, successive governments have promised to crackdown on the more extreme tax plan. ning schemes, with limited success to date. Recent public interest in the social acceptability of some of these tax planning schemes has increased debate about the ethics of the activity. What do you think? Is it ethically acceptable for accounting firms to advise their wealthy clients to adopt complex tax planning schemes to massively reduce their tax bills, as long as those schemes are completely legal? 19.4A For simplicity and convenience, this chapter discusses accountants as working 'in practice'. 'in industry' or 'in the public sector'. However, some organisations might not fall neatly into one of these three categories but will still require accounting services. Can you suggest any such organisations? 19.5 A In this chapter you've learnt about some specific roles and areas of accountancy, such at 'financial controller' or 'tax adviser'. Can you suggest any other particular areas of accounting in which you can specialise? 19.6A Some students who want to train with an accountancy practice tend to focus exclusively on trying to get a job with one of the 'Big Four' (PwC, Deloitte, EY and KPMG) and ignore smaller accounting firms altogether. Required: (a) What do you think are the advantages of training with a 'Big Four' firm? (b) Can you suggest any disadvantages of focusing exclusively on the 'Big Four'? (c) Are you able to identify any potential benefits of training with a smaller firm? 19.7 A You may have no plans to become an accountant in the future. Why is it still important for you to study the basics of accounting, such as those covered in this book? 19.8A The rate of progress in technology is so rapid that it is very difficult to predict exactly how new technology will affect accounting in the future. Can you suggest any developments in technol. ogy that could have a significant impact on accounting in the future