ACC 556 ASSIST Great Stories /acc556assist.com ACC 556 ASSIST Great Stories /acc556assist.com | Page 28

All of the following statements are true regarding cash flow
presentations except
Question 20
For each of the following items, indicate by using the appropriate
code letter, how the item should be reported in the statement of
cash flows, using the indirect method.
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ACC 556 Crooked Scenario 2 Part 1
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Shortly after you completed your work of unpacking all the
players in the CrookEd Partners drama and identifying all
potential fraudulent activity that had been relayed to you (Week
One Scenario Assignment), your secretary came into your office
and said you had a visitor. You inquired who it was and she said
it was an accountant, C.H. Ainge O‘Hart (Chainge ‗O Hart) from
a local CPA firm, Inn, Kaw, Hoots (IKH). You were familiar
with this firm and familiar with their reputation. You also know
they were the external auditors and business advisors for
CrookEd Partners, as mentioned by Bubba.
You immediately dropped what you were doing and rushed out of
your office to meet Mr. Hart. He is escorted into a private office
where you also invite your team.
Mr. Hart was obviously nervous and sweaty, so you offer him
something cool to drink. Almost before you could sit down and
begin to inquire why Mr. Hart has joined you, he blurts out that
one set of the financial statements he provided Steamy and Daddy
were correct and one set was wildly incorrect. The one created by
CrookEd Partners is false; the one by Inn Kaw Hoots is correct.