Sean Morgan is the owner of a local CPA firm with four separate offices. He and...

Sean Morgan is the owner of a local CPA firm with four separate offices. He and his wife started the firm over 20 years ago, and have over 50 full-time employees. Recently, he discovered that one of his employees had stolen $20,000 from the business during the past six months because of lax internal control. Sean was furious about the situation, but was uncertain about whether he should initiate a criminal investigation of just fire the employee. List: 1. Three reasons why Sean should have the employee prosecuted. 2. Three reasons why Sean might not want to seek prosecution of his employee. If you were Sean, what would you do?

Expert Solution

ekkarill92 answered 1 year ago

Henry Owens, CPA works in a local accounting firm. He is the tax manager on a...

Henry Owens, CPA works in a local accounting firm. He is the tax manager on a major client in the office. The firm prepares compiled financial statements for the client on a quarterly basis. The client was impacted by the BP oil spill off the Gulf coast, and the client would like to engage Henry to help the business prepare a claim for damages from BP. The client would like to pay Henry on a contingent fee basis where Henry...

You are a partner in a regional CPA firm, Swearingen & Gray, with 14 offices covering...

You are a partner in a regional CPA firm, Swearingen & Gray, with 14 offices covering the Eastern United States. Your firm routinely publishes and distributes reports to its clients that cover current accounting and financial reporting topics. You have been asked by James Swear- Ingen, the managing partner of your firm, to prepare such a report on the use of non-GAAP measurements in annual reports, an issue about which the SEC has recently voiced serious concern. In your report,...

An engineering firm is expanding its offices in the United States. The firm has selected four...

An engineering firm is expanding its offices in the United States. The firm has selected four prime locations near major metropolitan areas. They want to determine if the average hourly wage is significantly different among the four chosen locations since this would impact overall cost. A survey of 20 wages of similar positions in each of the four locations was taken by random sampling, thus the sample size in each location was 5. The following ANOVA table was created based...

James J. Dewars has been the sole owner of a small CPA firm for the past...

James J. Dewars has been the sole owner of a small CPA firm for the past 20 years. Now 52 years old, Dewars is concerned about the continuation of his practice after he retires. He would like to begin taking more time off now although he wants to remain active in the firm for at least another 8 to 10 years. He has worked hard over the decades to build up the practice so that he presently makes a profit...

Is it likely that a local CPA firm will practice matrimonial forensics in many different states?...

Is it likely that a local CPA firm will practice matrimonial forensics in many different states? Why or why not?

Tonya Latino is a staff accountant for Cannally and Kennedy, local CPA firm. For the past...

Tonya Latino is a staff accountant for Cannally and Kennedy, local CPA firm. For the past 10 years, the firm has given employees a year – and bone is equal to two weeks salary. 15, the firms management team and there was that there would be no angel bonus this year. Because of the firm’s long history of giving a year-end bonus, Tonya and her coworker had come to expect the bonus and believe that Cannally and Kennedy had implicit...

You are a CPA working for a local firm and have been assigned the 2020 tax...

You are a CPA working for a local firm and have been assigned the 2020 tax return of Bobby Crosser. In going over the data that Bobby gave the firm, you are surprised to see that he has reported no dividend income or gains from the sale of stock. You recently prepared the 2020 gift tax return of Bobby’s aunt Ester. In that return, Ester reported a gift of stock to Bobby on January 6, 2020. The stock had a...

Betty Crawford is a staff accountant for a local CPA firm. For the past 15 years,...

Betty Crawford is a staff accountant for a local CPA firm. For the past 15 years, the CPA firm has given employees a year-end bonus equal to two weeks’ salary. On November 30, the firm’s management team announced that there would be no annual bonus this year. Because of the firm’s long history of giving a year-end bonus, Betty and her co-workers had come to expect the bonus and felt that the firm had breached an implicit agreement by discontinuing...

You have been working at a local CPA firm for the last 2 years. At the...

You have been working at a local CPA firm for the last 2 years. At the beginning of the year, you passed the last section of the CPA Exam. Last week, your CPA License came in the mail. Consequently, you have now decided to go into business for yourself. You have some savings and have a line on a bank loan for start-up costs. Additionally, you do not have a noncompete clause in your employment agreement with your current CPA...

An accounting intern for a local CPA firm was reviewing the financial statements of a client in the electronics industry.

An accounting intern for a local CPA firm was reviewing the financial statements of a client in the electronics industry. The intern noticed that the client used the FIFO method of determining ending inventory and cost of goods sold. When she asked a colleague why the firm used FIFO instead of LIFO, she was told that the client used FIFO to minimize its income tax liability. This response puzzled the intern because she thought that LIFO would minimize income tax...

Question