Accounting Discussion Post

A) The tax consequences of a corporate reorganization and a complete liquidation are different for both shareholders and the corporation.
Describe the tax consequences that arise from each for both the shareholder and the corporation.

B) Determine at least three qualitative factors that affect the auditor’s judgment.
Provide a rationale for your response.

C) Briefly explain generally accepted accounting principles (GAAP), and describe why it is important that public companies follow GAAP when preparing financial statements.
In addition, give your opinion on whether private companies should be required to follow GAAP. Provide a rationale for your opinion.