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PDtax, Other
Category: Essays
Satisfied Customers: 4674
Experience:  Former college instructor and tutor. MBA/CPA credentials.
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Tammy Potter, a new partner with the regional CPA firm of

Customer Question

Tammy Potter, a new partner with the regional CPA firm of Tower & Tower, was recently appointed to the board of directors of a local civic organization. The chairman of the board of the civic organization is Lewis Edmond, who is also the owner of a real estate development firm, Tierra Corporation.
Potter was quite excited when Edmond indicated that his corporation needed an audit and he wished to discuss the matter with her. During the discussion, Potter was told that Tierra Corporation needed the audit to obtain a substantial amount of additional financing to acquire another company. Presently, Tierra Corporation is successful, profitable, and committed to growth. The audit fee for the engagement should be substantial.
Since Tierra Corporation appeared to be a good client prospect, Potter tentatively indicated that Tower & Tower wanted to do the work. Potter then mentioned that Tower & Tower’s quality control policies require an investigation of new clients and approval by the managing partner, Lee Tower.
Potter obtained the authorization of Edmond to make the necessary inquiries for the new client investigation. Edmond was found to be a highly respected member of the community. Also, Tierra Corporation was highly regarded by its banker and its attorney, and the Dun & Bradstreet report on the corporation reflected nothing negative.
As a final part of the investigation process, Potter contacted Edmond’s former tax accountant, Bill Turner. Potter was surprised to discover that Turner did not share the others’ high opinion of Edmond. Turner related that on an IRS audit 10 years ago, Edmond was questioned about the details of a large capital loss reported on the sale of a tract of land to a trust. Edmond told the IRS agent that he had lost all the supporting documentation for the transaction, and that he had no way of finding out the names of the principals of the trust. A search by an IRS auditor revealed that the land was recorded in the name of Edmond’s married daughter and that Edmond himself was listed as the trustee. The IRS disallowed the loss and Edmond was assessed a civil fraud penalty. Potter was concerned about these findings, but eventually concluded that Edmond had probably matured to a point where he would not engage in such activities.
a. Present arguments supporting a decision to accept Tierra Corporation as an audit client.
b. Present arguments supporting a decision not to accept Tierra Corporation as an audit client.
c. Assuming that you are Lee Tower, set forth your decision regarding acceptance of the client, and identify those arguments from part (a) or part (b) that you found most persuasive.
Your paper should be 3 pages in length. Follow APA format
Submitted: 1 year ago.
Category: Essays
Expert:  PDtax replied 1 year ago.
Hi from just answer. I'm PDtax. Site management asked me to look in and respond.The project will take some time, so I will need to ask for a price increase. I also need a deadline.Please advise.
Customer: replied 1 year ago.
I have cancelled this order, but I do have another that I would appreciate a quote on. Thank you!
Customer: replied 1 year ago.
As you are planning the annual audit of Norton Corporation, you note that the company has a number of user-operated computers in use in various locations. One of the machines has been installed in the stores department, which has the responsibility for disbursing stock items and for maintaining stores’ records. In your audit, you find that one employee receives the requisitions for stores, disburses the stock, maintains the records, operates the computer, and authorizes adjustments to the total amounts of stock recorded by the computer.When you discuss the applicable controls with the department manager, you are told that the user-operated computer is assigned exclusively to that department. Therefore, the manager contends that it does not require the same types of controls applicable to large IT systems.Required:1. Comment on the manager’s contention.
2. Discuss five types of control that would apply to this microcomputer application.Your paper should be 3 pages in length. Follow APA formatDUE IN 3 DAYS, SUNDAY THE 29TH.
Expert:  PDtax replied 1 year ago.
Hi again. PDtax here.Since this was cancelled, I think you need to post it to a new question thread. Ask for me in the subject line, and I will give a quote.
Customer: replied 1 year ago.
submitted question and requested you. Thank you!
Customer: replied 1 year ago.
Were you able to see the question? I had one due today that wasnt too difficult is the reason I ask, so just wondering if that part of the assignment is possible before I try other options for part 1. Thank you!
Customer: replied 1 year ago.