ethics-changes-in-estimate

Calculate the Price


Price (USD): $11

Mike Crane is an audit senior of a large public accounting firm who has just been assigned to the Frost Corporation’s annual audit engagement. Frost has been a client of Crane’s firm for many years. Frost is a fast-growing business in the commercial construction industry. In reviewing the fixed asset ledger, Crane discovered a series of unusual accounting changes, in which the useful lives of assets, depreciated using the straight-line method, were substantially lowered near the midpoint of the original estimate. For example, the useful life of one dump truck was changed from 10 to 6 years during its fifth year of service. Upon further investigation, Mike was told by Kevin James, Frost’s accounting manager, “I don’t really see your problem. After all, it’s perfectly legal to change an accounting estimate. Besides, our CEO likes to see big earnings!”

Answer the following questions in the Discussion Board:

  1. What are the ethical issues concerning Frost’s practice of changing the useful lives of fixed assets?
  2. Who could be harmed by Frost’s unusual accounting changes?
  3. What should Crane do in this situation?

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2016). Accounting changes and error analysis. Intermediate accounting (16th ed.). (p. 1323). New York, NY: John Wiley & Sons, Inc.

The post ethics-changes-in-estimate first appeared on Term Paper Tutors.

"Do you need a similar assignment done for you from scratch? We have qualified writers to help you with a guaranteed plagiarism-free A+ quality paper. Discount Code: SUPER50!"

order custom paper
The World's Best Writers

Unlike other essay writing companies, we don’t just use any writers – we use the best of the best. Every writer is not only directly qualified in the subject they write for, but has been through and understands the challenges and difficulties of Higher Education.

Every writer is hand selected by our team to produce the best piece of work possible. We simply won’t settle for less.

18 Years in Business

Ever since we started back in 2003, we’ve led the industry from the front, setting trends and smashing expectations. We were the first company in the world to offer you guaranteed 2:1 and 1st class work and we’re one of the few companies located in the UK.

Why don’t you come and say hello?

We Love Writing

At UK Best Essays, we’re proud to know exactly what goes into making an awesome essay. We’ve dedicated over 14 years towards becoming experts in all things academic – from essays, assignments and coursework, through to dissertations, exams, reports and reflections.

While others come and go, UK Best Essays has grown and developed into one of the world’s leading academic support companies. Got more questions about our services?

© 2022 All rights reserved. UK Best Essays is a professional writing service that provides original papers. Our products include academic papers of varying complexity and other personalized services, along with research materials for assistance purposes only. All the materials from our website should be used with proper references.