Auditing

Name: Bin Lu
Case Study Assignment
A.5 Qwest


1.Consider the rulers, assumptions, and constraints of in general Accepted Accounting Principles (GAAP). Define the full disclosure regulations and formulate why it is important to users of financial accounts.
Full disclosure principle requires that all real information have to be bring out in the financial statements, and any future event that may or will occur, and that will have a material economic impact on the financial position of the business, should be disclosed to probable and potential readers of the statements.
Full disclosure principle indicates that all situations, circumstances and events that are relevant to financial statement users have to be disclosed. In other words, all of a gilds financial records and transactions have to be available for viewing. It was created to protect the safety of the businessman and investor, also, businessman and investors privy be mislead into making unintelligent decisions as a result of withholding financial information.
2.Explain specifically why Qwests failure to disclosure the extent of nonrecurring tax income violated the full disclosure principle.




Qwests failure in its cosmos disclosures to break out segments and revenue in the same bearing it viewed the company internally hid Qwests addiction to non-recurring revenue. For purposes of its earnings releases and the Managements discourse and Analysis portion of its Commission filings, Qwest improperly characterized non- recurring revenue as service revenue, and data and Internet service revenues in particular. Qwests non-recurring revenue was included primarily in the wholesale go segment, and to a lesser extent, the retail services segment. Qwest, therefore, falsely be itself as a fast growing technology company emphasizing its broadband Internet-based services, masking the modest growth of Qwests telecommunications services business. By crafting its segment reporting to hide...If you want to consume a full essay, order it on our website: Orderessay



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