ACC 499 Assignment 3 Capstone Research Project

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Points: 210 Assignment 3: Capstone Research Project

Criteria

Unacceptable

Below 60% F

Meets Minimum

Expectations

60-69% D

Fair

70-79% C

Proficient

80-89% B

Exemplary

90-100% A 1. Evaluate any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Prepare a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommend- ation, include essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance.

Weight: 10%

Did not submit or incompletely evaluated any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Did not submit or incompletely prepared a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommend- ation, did not submit or incompletely included essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance.

Insufficiently evaluated any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Insufficiently prepared a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommend- ation, insufficiently included essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance.

Partially evaluated any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Partially prepared a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommend- ation, partially included essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance.

Satisfactorily evaluated any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Satisfactorily prepared a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommend- ation, satisfactorily included essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance.

Thoroughly evaluated any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Thoroughly prepared a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommend- ation, thoroughly included essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance.

2. Examine the negative results on stakeholders and the financial statements of an IRS audit which generates additional tax and penalties or subsequent audits. Assume that the subsequent audit and / or additional tax and penalties result from the taxpayer’s use of an inventory reserve account,

Did not submit or incompletely examined the negative results on stakeholders and the financial statements of an IRS audit which generates additional tax and penalties or subsequent audits. Did not submit or incompletely assumed that the subsequent audit and / or additional tax and penalties

Insufficiently examined the negative results on stakeholders and the financial statements of an IRS audit which generates additional tax and penalties or subsequent audits. Insufficiently assumed that the subsequent audit and / or additional tax and penalties result from the taxpayer’s use

Partially examined the negative results on stakeholders and the financial statements of an IRS audit which generates additional tax and penalties or subsequent audits. Partially assumed that the subsequent audit and / or additional tax and penalties result from the taxpayer’s use of an inventory

Satisfactorily examined the negative results on stakeholders and the financial statements of an IRS audit which generates additional tax and penalties or subsequent audits. Satisfactorily assumed that the subsequent audit and / or additional tax and penalties result from the taxpayer’s use

Thoroughly examined the negative results on stakeholders and the financial statements of an IRS audit which generates additional tax and penalties or subsequent audits. Thoroughly assumed that the subsequent audit and / or additional tax and penalties result from the taxpayer’s use

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applying a 10 percent reduction to inventory over three (3) years.

Weight: 10%

result from the taxpayer’s use of an inventory reserve account, applying a 10 percent reduction to inventory over three (3) years.

of an inventory reserve account, applying a 10 percent reduction to inventory over three (3) years.

reserve account, applying a 10 percent reduction to inventory over three (3) years.

of an inventory reserve account, applying a 10 percent reduction to inventory over three (3) years.

of an inventory reserve account, applying a 10 percent reduction to inventory over three (3) years.

3. Discuss the applicable federal tax laws, regulations, rulings, and court cases related to the inventory write- downs, and explain the specific relevance of each to the write-down.

Weight: 10%

Did not submit or incompletely discussed the applicable federal tax laws, regulations, rulings, and court cases related to the inventory write- downs; did not submit or incompletely explained the specific relevance of each to the write-down.

Insufficiently discussed the applicable federal tax laws, regulations, rulings, and court cases related to the inventory write- downs; insufficiently explained the specific relevance of each to the write-down.

Partially discussed the applicable federal tax laws, regulations, rulings, and court cases related to the inventory write- downs; partially explained the specific relevance of each to the write-down.

Satisfactorily discussed the applicable federal tax laws, regulations, rulings, and court cases related to the inventory write- downs; satisfactorily explained the specific relevance of each to the write-down.

Thoroughly discussed the applicable federal tax laws, regulations, rulings, and court cases related to the inventory write- downs; thoroughly explained the specific relevance of each to the write-down.

4. Research the current generally accepted accounting principles (GAAP) regarding stock option accounting. Evaluate the current treatment of the company’s share-based compensation plan based on GAAP reporting. Contrast the financial benefits and risks of the share-based compensation stock option plan with the financial benefits and risks of a share- based stock- appreciation rights plan (SARS). Recommend to the CFO which plan the company should use and provide the correct accounting treatment for each.

Weight: 10%

Did not submit or incompletely researched the current generally accepted accounting principles (GAAP) regarding stock option accounting. Did not submit or incompletely evaluated the current treatment of the company’s share-based compensation plan based on GAAP reporting. Did not submit or incompletely contrasted the financial benefits and risks of the share-based compensation stock option plan with the financial benefits and risks of a share- based stock- appreciation rights plan (SARS). Did not submit or incompletely recommended to the CFO which plan the company should

Insufficiently researched the current generally accepted accounting principles (GAAP) regarding stock option accounting. Insufficiently evaluated the current treatment of the company’s share-based compensation plan based on GAAP reporting. Insufficiently contrasted the financial benefits and risks of the share-based compensation stock option plan with the financial benefits and risks of a share- based stock- appreciation rights plan (SARS). Insufficiently recommended to the CFO which plan the company should use and provided the correct accounting

Partially researched the current generally accepted accounting principles (GAAP) regarding stock option accounting. Partially evaluated the current treatment of the company’s share-based compensation plan based on GAAP reporting. Partially contrasted the financial benefits and risks of the share-based compensation stock option plan with the financial benefits and risks of a share- based stock- appreciation rights plan (SARS). Partially recommended to the CFO which plan the company should use and provided the correct accounting

Satisfactorily researched the current generally accepted accounting principles (GAAP) regarding stock option accounting. Satisfactorily evaluated the current treatment of the company’s share-based compensation plan based on GAAP reporting. Satisfactorily contrasted the financial benefits and risks of the share-based compensation stock option plan with the financial benefits and risks of a share- based stock- appreciation rights plan (SARS). Satisfactorily recommended to the CFO which plan the company should use and provided the correct accounting

Thoroughly researched the current generally accepted accounting principles (GAAP) regarding stock option accounting. Thoroughly evaluated the current treatment of the company’s share-based compensation plan based on GAAP reporting. Thoroughly contrasted the financial benefits and risks of the share-based compensation stock option plan with the financial benefits and risks of a share- based stock- appreciation rights plan (SARS). Thoroughly recommended to the CFO which plan the company should use and provided the correct accounting

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use and provided the correct accounting treatment for each.

treatment for each.

treatment for each.

treatment for each.

treatment for each.

5. Research the reporting requirements for lease reporting under GAAP and International Financial Reporting Standards (IFRS). Based on your research, create a proposal for future lease transactions to the CFO. Within the proposal, discuss the use of off-the- balance sheet financing arrangements, capital leases, and operating leases, and indicate the related business and financial risks of each.

Weight: 10%

Did not submit or incompletely researched the reporting requirements for lease reporting under GAAP and International Financial Reporting Standards (IFRS). Based on your research, did not submit or incompletely created a proposal for future lease transactions to the CFO. Within the proposal, did not submit or incompletely discussed the use of off-the- balance sheet financing arrangements, capital leases, and operating leases, and indicate the related business and financial risks of each.

Insufficiently researched the reporting requirements for lease reporting under GAAP and International Financial Reporting Standards (IFRS). Based on your research, insufficiently created a proposal for future lease transactions to the CFO. Within the proposal, insufficiently discussed the use of off-the- balance sheet financing arrangements, capital leases, and operating leases, and indicate the related business and financial risks of each.

Partially researched the reporting requirements for lease reporting under GAAP and International Financial Reporting Standards (IFRS). Based on your research, partially created a proposal for future lease transactions to the CFO. Within the proposal, partially discussed the use of off-the- balance sheet financing arrangements, capital leases, and operating leases, and indicate the related business and financial risks of each.

Satisfactorily researched the reporting requirements for lease reporting under GAAP and International Financial Reporting Standards (IFRS). Based on your research, satisfactorily created a proposal for future lease transactions to the CFO. Within the proposal, satisfactorily discussed the use of off-the- balance sheet financing arrangements, capital leases, and operating leases, and indicate the related business and financial risks of each.

Thoroughly researched the reporting requirements for lease reporting under GAAP and International Financial Reporting Standards (IFRS). Based on your research, thoroughly created a proposal for future lease transactions to the CFO. Within the proposal, thoroughly discussed the use of off-the- balance sheet financing arrangements, capital leases, and operating leases, and indicate the related business and financial risks of each.

6. Create an argument for or against a single set of international accounting standards related to lease accounting based on the global market and cross border leases of assets. Examine the benefits and risks of your chosen position.

Weight: 10%

Did not submit or incompletely created an argument for or against a single set of international accounting standards related to lease accounting based on the global market and cross border leases of assets. Did not submit or incompletely examined the benefits and risks of your chosen position.

Insufficiently created an argument for or against a single set of international accounting standards related to lease accounting based on the global market and cross border leases of assets. Insufficiently examined the benefits and risks of your chosen position.

Partially created an argument for or against a single set of international accounting standards related to lease accounting based on the global market and cross border leases of assets. Partially examined the benefits and risks of your chosen position.

Satisfactorily created an argument for or against a single set of international accounting standards related to lease accounting based on the global market and cross border leases of assets. Satisfactorily examined the benefits and risks of your chosen position.

Thoroughly created an argument for or against a single set of international accounting standards related to lease accounting based on the global market and cross border leases of assets. Thoroughly examined the benefits and risks of your chosen position.

7. Examine the major implications of SAS 99 based on the factors you discovered

Did not submit or incompletely examined the major implications of SAS 99 based

Insufficiently examined the major implications of SAS 99 based on the factors

Partially examined the major implications of SAS 99 based on the factors

Satisfactorily examined the major implications of SAS 99 based on the factors

Thoroughly examined the major implications of SAS 99 based on the factors

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during the initial evaluation of the company. Provide support for your rationale.

Weight: 10%

on the factors you discovered during the initial evaluation of the company. Did not submit or incompletely provided support for your rationale.

you discovered during the initial evaluation of the company. Insufficiently provided support for your rationale.

you discovered during the initial evaluation of the company. Partially provided support for your rationale.

you discovered during the initial evaluation of the company. Satisfactorily provided support for your rationale.

you discovered during the initial evaluation of the company. Thoroughly provided support for your rationale.

8. Analyze the potential for a material misstatement in the financial statements based on the issues identified in your initial evaluation. Make a recommendation to the CFO for the issuance of restated financial statement restatement. Identify at least three (3) significant issues that can result from the failure to issue restated financial statements.

Weight: 10%

Did not submit or incompletely analyzed the potential for a material misstatement in the financial statements based on the issues identified in your initial evaluation. Did not submit or incompletely made a recommendation to the CFO for the issuance of restated financial statement restatement. Did not submit or incompletely identified at least three (3) significant issues that can result from the failure to issue restated financial statements.

Insufficiently analyzed the potential for a material misstatement in the financial statements based on the issues identified in your initial evaluation. Insufficiently made a recommendation to the CFO for the issuance of restated financial statement restatement. Insufficiently identified at least three (3) significant issues that can result from the failure to issue restated financial statements.

Partially analyzed the potential for a material misstatement in the financial statements based on the issues identified in your initial evaluation. Partially made a recommendation to the CFO for the issuance of restated financial statement restatement. Partially identified at least three (3) significant issues that can result from the failure to issue restated financial statements.

Satisfactorily analyzed the potential for a material misstatement in the financial statements based on the issues identified in your initial evaluation. Satisfactorily made a recommendation to the CFO for the issuance of restated financial statement restatement. Satisfactorily identified at least three (3) significant issues that can result from the failure to issue restated financial statements.

Thoroughly analyzed the potential for a material misstatement in the financial statements based on the issues identified in your initial evaluation. Thoroughly made a recommendation to the CFO for the issuance of restated financial statement restatement. Thoroughly identified at least three (3) significant issues that can result from the failure to issue restated financial statements.

9. Examine the economic effect of restatement of the financial statements on investors, employees, customers, and creditors.

Weight: 5%

Did not submit or incompletely examined the economic effect of restatement of the financial statements on investors, employees, customers, and creditors.

Insufficiently examined the economic effect of restatement of the financial statements on investors, employees, customers, and creditors.

Partially examined the economic effect of restatement of the financial statements on investors, employees, customers, and creditors.

Satisfactorily examined the economic effect of restatement of the financial statements on investors, employees, customers, and creditors.

Thoroughly examined the economic effect of restatement of the financial statements on investors, employees, customers, and creditors.

10. Cite 5 references.

Weight: 5%

No references provided.

Does not meet the required number of references; all references poor- quality choices.

Does not meet the required number of references; some references poor-quality choices.

Meets required number of references; all references high- quality choices.

Exceeds required number of references; all references high- quality choices.

11. Clarity, writing mechanics, and formatting requirements

More than 8 errors present.

7-8 errors present.

5-6 errors present.

3-4 errors present.

0-2 errors present.

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Weight: 10%