1. What is the purpose of the auditor’s report?
2. How is the ownership of a corporation different from that of a sole proprietorship?
3. What is the purpose of accounting?
4. What does the accounting process involve?
5. What are the three types of business entities?

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Discussion Questions

1. What types of people or organizations are interested in financial information about a firm, and why are they interested in this information?
2. What is the function of the Securities and Exchange Commission?
3. What are the three types of business entities, and how do they differ?
4. Why is it important for business records to be separate from the records of the business’s owner or owners? What is the term accountants use to describe this separation of personal and business records?
5. What is the purpose of the Financial Accounting Standards Board?
6. What groups consistently offer opinions about proposed FASB statements?
7. What are the three major areas of accounting?
8. What types of services do public accountants provide?
9. What is tax planning?
10. What are the major functions or activities performed by accountants in private industry?
11. What led to the passage of the Public Company Accounting Reform and Investor Protection Act of 2002?
12. What is the purpose of the Public Company Accounting Oversight Board?