Letter

Prepare a letter (not a memo) addressed to Amelia Emerson, Controller, Gadget, Inc. at 350 Accounting Avenue, San Francisco, California 94129, advising her about how to account for the lawsuit. You must support your advice by citing any applicable accounting standards. Do not include a reference page until you complete a follow-up assignment in ACCT 351COM. You must limit your letter to one page (single spaced with double space between paragraphs) and one-inch margins. Only submit the one page and nothing else. Create your own letterhead for the accounting firm you represent. The date should be placed no less than one-half inch below the letterhead (or 1.5 inches from the top of the page). In addition to analyzing the accounting issue(s) in your letter, include a brief comment about any ethical issue that Amelia faces. You should look at the AICPA Code of Professional Conduct rule on "Integrity and Objectivity". Briefly explain to Amelia the one part of this rule she should most consider in her current situation. But remember (and be careful) that the CEO and CFO may be "secondary readers" of your letter, and that you are creating a part of a written record on this issue. Please note that it is Certified Public Accountants (CPAs) like Amelia who are "members" of the AICPA and must uphold the AICPA Code of Professional Conduct.

 

 

 

Sample Solution