To: Mature Tax Supervisor, Stellar CERTIFIED PUBLIC ACCOUNTANT Consulting, Inc.
Coming from: Team G, Stellar CERTIFIED PUBLIC ACCOUNTANT Consulting, Inc.
Date: August 30, 2010
Subject: Effects of Shared-Based Payments and Special Goal Entities about Financial Assertions and Audits
Economies of scales have created debt consolidation of undertakings between firms. As a result of mergers, shared-based obligations and special purpose entities (SPEs) have grown to be prevalent in operation. In addition to strengthening competition of the mixed companies, a lot of goals are met just like tax savings, growth and diversification, a more substantial financial base, and maximize profits. Generally Accepted Accounting Principles (GAAP) does not need separate monetary statements in the companies merged. SFAS No . 131 will require a section reporting which includes separate salary statement and balance sheet data as well as earnings or damage and total assets (Schroeder, Clark, & Cathey, 2005). Segment is defined as a " component of an enterprise engaged in proving a product or service or serviceвЂќ (Schroeder, Clark simon, & Cathey, 2005 g. 9). Part of our audit will include considering shared-based payment and SPEs. This memorando describes requirements per GAAP in planning an review opinion on whether the client is in conformity with segment reporting of shared-based repayments and SPEs. Purpose of Monetary Audits According to GAAP
The purpose of economic audits is always to ensure that data reported on the financial assertions is relevant, dependable, honest and accurate. Economical statements happen to be developed to communicate economical information of the company to its stakeholders and to discover a company's financial performance. The American Institute pertaining to Certified General public Accountants (AICPA) states that anyone who works on financial transactions is required to do this in accordance with GAAP. By making sure that you comply with GAAP, auditors may assure suitable internal controls are set up. A successful economic audit reduces the chance of fabric misstatements...