1933 FDR Created SEC (Regulates stock market)

What is the SEC? (first 100 days of FDR, reaction to crash of 29)

1936 First use of GAAP (FDR, general regulation rules for banks, learn the same rules)  
JP Morgan The man and his role

What is the GAP? (Most of accounting is shades gray, transactions/corporate memory)

Audit uses GAAP rules, follows rules, fail safe accounting position,  

Spreadsheets Changed the Nature Accounting

1. Define Accounting (The Job)  
2. Define CPA (ABOUT CPA'S)

The Big Four

3. Ersnt and Young
4. KPMG
5. Deloitte
6. PricewaterhouseCoopers
7. Forensic Accounting (fit for legal review, booming since Enron) SME's
8. Private Accountants (didn't take or pass CPA exam, lots of them than CPA's)
9. Certified Management Accountants (Rules first term, Second term Decision Making)
10. Bookkeeping (low career path)
11. Accounting (Reporting, Decision Support, Control, Taxes)
12. Annual Report (Summary of firm's fiscal information) investors/key stakeholders
13. Basic Accounting Equation (Assets = Liabilities + Owners Equity) owner own $
14. Income Statement
15. Balance Sheet (Asset = Owned by firms) Liability (Owed by firm)
16. Double-Entry Bookkeeping
17. Accounts payable ($ owed by firm for materials)
18. Notes payable (Short loans)
19. Account Receivable ($ owed to firm by customers)
20. Current Assets (things 12 months or less, use this year)
21. Fixed Asset (the that last more than a year)
22. Depreciations (Things wear out, tax laws understand that, PC 5 years)

Audit Crew Jobs. Great place to start, exposure, work, play, road warriors, end up with great jobs in races they want to live.

Homework: Read Chapter 15 "Check Your Progress" Question 1-9
Bring paper copy to class Tuesday 11/22.