SOLUTIONS FOR CHAPTER 1 Discussion Questions DQ1-1 “I don’t want to learn about technology; I just want to be a good accountant.” Comment. ANS. Possible points that could be made: a. Distinguish between an accountant and a bookkeeper. An understanding of accounting software and related technology would enable one to advance beyond entry-level positions. b. Without knowledge of computer technology, an accountant can be a bookkeeper/accountant for a small firm that does not use computers at all. (With the ubiquitous nature of computers, this has become a weak argument, at best.) c. Because the ability to access data, present data for decision making, audit an accounting system, and so on, are all affected by computer technology, the career path for an accountant will be severely limited by his knowledge of computer technology. d. The public accounting profession is competitive and the effective use of technology helps maintain a competitive edge. For example, an auditor can usually complete an audit engagement in less time—and be surer of the findings—than he/she would be without using technology in the audit. This will permit the auditor to charge less for the work and to obtain more clients. And, if the auditor’s findings can be supported, he/she will be less likely to experience legal ramifications (from the SEC, from stockholders, and so on). e. The Sarbanes-Oxley Act of 2002 requires that the CFO (and CEO) sign the financial statements and attest to their accuracy, that companies notify the Securities & Exchange Commission of material events within 2 days, and that companies file their earnings statements within 35 days of the end of a quarter. All of these requirements have implications for the organization’s accounting information system and the ability of the CFO to understand and monitor its operation. DQ1-2 Examine Figure 1.1. Based on your college education to date, with which elements are you most comfortable? With which are you least comfortable? Discuss your answers. ANS. See DQ1-3.