Intermediate Accounting I – Financial Accounting Theory & Analysis Project

Intermediate Accounting I – Financial Accounting Theory & Analysis Project 

Based on your letter, you have been assigned a company that is known  for violating Generally Accepted Accounting Principles (GAAP) by being  involved in some element of an accounting scandal. For your assignment,  review the scenario below:

Memo 1 Scenario: You are the controller for a  profitable fictitious company. You have just hired two new members of  the accounting team and will introduce them to the wonderful world of  Accounting. In doing so, you will also ensure that they are aware of the  implications of not adhering to established accounting standards and  management’s internal controls. To further stress your point, you will  reference a company that has violated U.S. financial reporting practices  and was pivotal in shifting the accounting and business world.

Note: This memo will precede a series of memos that  will be incrementally submitted. At the end of the semester, the memos  will transform into a paper that will be due at the end of the semester.  Further instructions will be provided throughout the semester.

Instructions:

Research information about your assigned company.(healthsouth)

Memo Guide: 

Memo Introduction:

• Begin the memo by acknowledging the purpose of the memo.

Memo Content:

For the body of the memo, provide the following information:

• Background information about the company (i.e. Company name, date of first operations, industry, CEO and owners, etc.)
• In your own words, summarize the core of the accounting scandal.  Provide the timeframe and any monetary values that were disclosed as a  result of the scandal.
• Describe the response to the scandal by the accounting profession, investors, creditors, lenders, and other stakeholders. Note: Be sure to reference regulatory, accounting professions, and boards that are mentioned in your textbook.
• Provide any additional information that you deem relevant.

Memo Conclusion: 

• Conclude the memo by providing your thoughts on the scandal and how  it has changed your perspective regarding your role as a future  accountant and/or business professional. Also express the strong need  for all in the accounting profession to uphold accounting standards and  principles.