ACCT 2102 Lecture 2: Accounting - Services, Manufactures and Merchandiser

What is conflict of interest in terms of Accounting Firms offering consulting services to businesses as well as external auditing services? What law prevented this? What accounting fraud case triggered this law to be drafted and implemented?

John Jones operates an accounting and tax practice. He bills $80per hour for accounting and $150 per hour for tax preparation andrelated services. Jones expects the following costs for nextyear:

Having experienced a decline in operating income last year,jones decides to try a new system called activity-based costing todetermine whether he should change his fee structure. He developedthe following data from previous records:

Jones feels that he had better not change his accounting billingrate due to competitive pressures. He does feel that he can chargemore for his tax services. He would like to make $150,000 beforetaxes next year. What would he need to bill per hour forhis tax services to achieve this goal?

Problem 6.51 , Chapter 6 from Accounting Information Systems 2:"You have been assigned to the cloud services evaluation teamresponsible for documenting cloud services for accounting.You arescheduled to make a short presentation about the different types ofcloud accounting providers, especially SAP ByDesign. Go online andsearch for cloud accounting. What would you say in yourpresentation summary?"