Auditing and Accounting Cases Investigating Issues of Fraud and Professional Ethics 4e Jay Thibodeau Deborah Freier (Case Solutions All Chapters, 100% Original Verified, A+ Grade) (Complete And Verified Study material) (465pages) LEARNEXAMS

Case #1.1 – Waste Management: The Expense Recognition Principle I. Technical Guidance To maximize a student’s knowledge acquisition of this material, this book has been designed to be read in conjunction with the post–Sarbanes-Oxley technical audit guidance. All of the PCAOB Auditing Standards that are referenced in this book are available for free at http://pcaobus.org/STANDARDS/Pages/default.aspx. In addition, a summary of the provisions of the Sarbanes-Oxley Act of 2002 is available for free on the book’s website at www.mhhe.com/thibodeau4e or at http://www.aicpa.org/Pages/Default.aspx. II. Recommended Technical Knowledge Conceptual Framework The Expense Recognition Principle (sometimes referred to as the Matching Principle) PCAOB Auditing Standard No. 5 Paragraph #2 PCAOB Auditing Standard No. 15 Paragraphs #5-6 III. Classroom Hints This case provides students with an opportunity to appreciate the difficulty that can be associated with auditing the application of depreciation rules to different types of assets at an audit client. Since the computation of depreciation expense requires management to estimate the salvage value and the estimated useful life for each asset depreciated, an auditor is often forced to evaluate a number of subjective factors when completing his/her procedures. To properly do