Required: Below are two independent scenarios involving professional standards. For each scenario students need to research the appropriate authoritative guidance and report their findings. Specifically, students need to use the IRAC format for reporting their research findings. That is, students need to identify the overarching Issue present for each scenario, identify and appropriately cite the applicable Rule. Students must then specifically demonstrate their understanding of how the rule applies to given scenario in an Analysis section and draw the necessary Conclusion with regard to the disposition of the issue identified.

Scenario 1: Ereq Sheldon is an audit partner for the public accounting firm EMJAE, LLP. Ereq is auditing ABC, a public company. ABC has requested a written report on the application of accounting principles for a specific transaction. ABC would like to include this report to be distributed with the audited financial statements. Ereq is unsure whether such an engagement is appropriate.

Scenario 2: Qiana Syerre is a licensed CPA. One of Qianas clients Crashco., an international airline, has recently purchased some landing slots. Qiana is unsure whether the amounts should be capitalized or expensed?