UNM The Review of Unrealized Gain and Loss Activity Bad News Email

Description

You just landed a management position with a CPA firm! You are reviewing a tax return for a returning
high net worth client and you have discovered an error. This is a high-profile client for the firm that has
provided many referrals.
The firm you work for provides bookkeeping and tax preparation services to this client. You have
discovered that the bookkeeper has been reporting the unrealized gain/loss to the income statement when
reconciling the investment account. To further compound the problem, the tax preparer and prior
manager have been reporting the unrealized gain/loss activity as an adjustment to revenue on the Tax
Return. Also, the error goes back 5 years, when the firm started working on the account (yes, the
accounting and tax return were correctly prepared by the prior accountant). The amount of revenue
recognized from unrealized gain/loss averaged $175,000 annually over the last 5 years.
This client’s preferred mode of communication is through e-mail. Draft an email in a letter form to the client
explaining the error and the consequences. (Don’t forget about the statute of limitations for amended
returns!) Write only one page.

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WRITTEN COMMUNICATION RUBRIC (MBA)
Student
Performance
Criteria
Document
Structure
Course
4
Completely
All structural
conventions of
particular genre
followed throughout
document to achieve a
completely appropriate
and evident purpose
with a completely
appropriate and evident
audience.
3
Mostly
Most structural
conventions of
particular genre
followed throughout
document to achieve a
mostly appropriate and
evident purpose with a
mostly appropriate and
evident audience.
Style & Mechanics Professional writing
style and mechanics
used throughout
document to achieve a
completely appropriate
and evident purpose
with a completely
appropriate and evident
audience.
Professional writing
style and mechanics
used throughout
document to achieve a
mostly appropriate and
evident purpose with a
mostly appropriate and
evident audience.
2
Somewhat
Structural conventions
of particular genre
followed sufficiently
enough to render
purpose and audience
appropriate and evident
at times, though some
conventions are
missing, misplaced, or
misunderstood, at times
rendering purpose and
audience inappropriate
or inevident.
Professional writing
style and mechanics
used in enough of
document to render
purpose and audience
appropriate and evident
at times, though
inattention and errors at
times render purpose
and audience
inappropriate or
inevident.
Date
1
Barely
Enough structural
conventions of
particular genre
missing,
misplaced, or
misunderstood to
render purpose
and audience
barely appropriate
or evident.
0
Not at All
Basic structural
conventions of
particular genre
completely
missing,
misplaced, or
misunderstood,
rendering purpose
and audience
completely
inappropriate or
inevident.
Enough
inattention to style
and errors in
mechanics to
render purpose
and audience of
document barely
appropriate or
evident.
Inattention to style
and errors in
mechanics render
purpose and
audience of
document
completely
inappropriate or
inevident.
Total Score
Score

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Explanation & Answer:
1 Page

Tags:
revenue

Tax return

Bad news

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