Auditing

Name: Bin Lu Case Study naming A.5 Qwest 1.Consider the rulers, assumptions, and constraints of in general Accepted Accounting Principles (GAAP). Define the total disclosure regulations and formulate why it is important to users of pecuniary accounts. extensive disclosure principle requires that all real information give birth to be bring out in the financial statements, and any future event that may or exit occur, and that will have a material economic impact on the financial position of the business, should be disclosed to probable and authority readers of the statements. Full disclosure principle indicates that all situations, circumstances and events that are relevant to financial statement users have to be disclosed. In other words, all of a gilds financial records and transactions have to be available for viewing. It was created to protect the sentry go of the businessman and investor, also, businessman and investors privy be mislead into making un intelligent decisions as a result of withholding financial information. 2.Explain specifically why Qwests also-ran to disclosure the utmost of nonrecurring tax income violated the full disclosure principle.

Qwests failure in its cosmos disclosures to break out segments and revenue in the same bearing it viewed the company internally hid Qwests dependence to non-recurring revenue. For purposes of its earnings releases and the Managements discourse and Analysis portion of its Commission filings, Qwest improperly characterized non- recurring revenue as service revenue, and data and profit service revenues in particular. Qwests non-recurring revenue was included primarily in the wholes ale go segment, and to a lesser extent, the! retail serve segment. Qwest, therefore, falsely be itself as a fast festering technology company emphasizing its broadband Internet-based services, masking the low-spirited growth of Qwests telecommunications services business. By crafting its segment reportage to hide...If you want to consume a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay