会计学 企业决策的基础 16版 1-5章 课后习题答案会计学 企业决策的基础 16版 1-5章 课后习题答案.pdf

Ex. 1.7 i. Financial accounting h. Management accounting b. Financial reporting f. Financial statements g. General-purpose assumption c. Integrity e. Internal control d. Public accounting a. Bookkeeping CASE 1.1 FANNIE MAE Several factors prevent a large publicly owned corporation such as Fannie Mae from issuing misleading financial statements, no matter how desperately the company needs investors’ capital. To begin with, there is the basic honesty and integrity of the company’s management and its accounting personnel. Many people participate in the preparation of the financial statements of a large corporation. For these statements to be prepared in a grossly misleading manner, all of these people would have to knowingly participate in an act of criminalfraud. Next, there is the audit of Fannie Maes financial statements by a firm of independent CPAs. These CPAs, too, would have to participate in a criminal conspiracy if the company were to supply creditors and investors with grossly misleading financial statements. If personal integrity is not sufficient to deter such an act of fraud, the federal securities laws provide for criminal penalties as well as financial liability for all persons engaged in the preparation and distribution of fraudulent financial statements. All that would be necessary for the SEC to launch an investigation would be a “tip” from but one individual within the company’s organization or its auditing firm. An investigation also would be launched automatically if the company declared bankruptcy or became insolvent shortly after issuing financial statements that did not indicate a shaky financial position. 1 Problem 2.1 A 2 Problem 2.3A 3 Problem 3.4A