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PART V
MASTERS FOR TRANSPARENCIES, SLIDES, AND
HANDOUTS
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EFFECTIVE WRITING FOR ACCOUNTANTS
Tips for the effective writer:
1. Content: Be sure that the accounting content is correct and
complete. Have you addressed all relevant accounting issues?
2. Critical Thinking: Think carefully and critically about the issues
with which you’re dealing. Anticipate questions and objections
your readers may raise.
3. Write the document with a particular reader in mind. Check that
issues are discussed on a level that the reader can understand. For
most documents, it is better to focus on practical, explicit advice
related to the case you are discussing, rather than general
accounting theory.
4. Write as concisely as possible, given the reader’s needs and the
issues to be addressed.
5. Develop a style that is clear and readable. Choose words that the
reader will understand, and construct sentences that convey your
meaning with precision and clarity.
6. Structure the document so that it is coherent. The organization
should be logical and the train of thought easy to follow.
Summarize main ideas near the beginning of the document, and
begin each paragraph with a topic sentence.
7. Revise the document so that it is polished and professional. It
should be free of all spelling errors and typos; grammatical errors
should not detract from the message.
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THE WRITING PROCESS
Plan
• read the assignment carefully
• analyze the purpose(s) of the document
• identify the accounting issues, including alternative solutions
to accounting problems
• analyze the reader’s interests, needs, and expectations
• gather and organize material
Draft
• put the ideas down on paper
• don’t stop to edit
• write the parts of the paper in whatever order you wish
Revise
• revise the document so that it is clear, coherent, and concise
• proofread for grammatical, mechanical, and typographical
errors
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PLANNING A PAPER
I. Answer after a careful reading and analysis of the assignment:
A. What are the accounting issues in this case?
B. What literature will I research to resolve these ideas?
C. Who is/are the reader(s) of this paper?
D. What are the readers’ concerns?
E. What is/are the purpose(s) of this paper?
II. Answer after completing the research and analyzing the case:
• What alternative solutions should I consider for solving the
accounting issues?
• What are the main points (conclusions) I need to make in
this paper?
(Relate to questions A, D, and E above.)
• What material should I include to make these conclusions
clear and meaningful to the readers?
(Relate to questions B, C and D above.)
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AUDIENCE ANALYSIS
• Knowledge of technical topic
• Knowledge of situation
• Interests and concerns
• Expectations
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COHERENT ORGANIZATION
1. Use summary sentences to help readers identify main ideas:
• near the beginning of the document, usually the introduction
• to begin each section
• as topic sentences at the beginning of each paragraph
• for longer documents, in the conclusion
2. Arrange ideas from the most to the least important.
Consider this question from the reader’s point of view.
3. Write in short paragraphs with strong topic sentences.
The average paragraph should be a maximum of 4-5 sentences.
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ACTIVE AND PASSIVE VOICE
Use active voice for most sentences.
Passive voice = a form of the + a past
verb to be participle of
another verb
(examples: am, is, (examples: given,
are, were, was done, kept, received,
be, being, been) accrued)
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PREPOSITIONAL PHRASES
Prepositions Prepositional Phrases
of of the client
in in the account
around around the office
to to the employees
on on the advice
for for the manager
through through the process
from from Ann Allen
about about the expense
at at the request
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SUBJECTS AND VERBS
Verbs should agree with their subjects in number:
singular subject + singular verb
plural subject + plural verb
Examples:
The company is successful.
(one company⎯singular verb)
The companies are successful.
(more than one company⎯plural verb)
The auditor of these twenty-six corporations has retired.
(one auditor⎯singular verb)
The auditors of this company have evaluated the
statements.
(more than one auditor⎯plural verb)
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CLEAR PRONOUN REFERENCE
These pronouns may cause trouble with broad or unclear reference:
this
it
which
Examples:
We found a problem with the inventory account because of
slow turnover and poor record keeping. This should be
investigated.
You may decide to revise your record keeping system to
control inventory, but it is not necessary.
The managers identified poor inventory control as a problem
needing immediate attention, which is a concern of the
controller.
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SAMPLE MEMO
MEMORANDUM August 16, 2014
TO: FLOYD JONES
FROM: DENNIS SMITH DS
SUBJECT: PURCHASING SHERATON MANUFACTURING
This memo is in response to your questions concerning the purchase of Sheraton
Manufacturing. The memo will first explain goodwill and then discuss how to determine
its value. By determining the value of Sheraton’s goodwill you will have a dollar amount
to help you determine how much you want to offer for the company as a whole.
What Is Goodwill?
Goodwill is an intangible asset made up of items which may contribute to the value and
earning power of a company, but which are not listed on the company’s balance sheet.
Some possible items that may make up goodwill for Sheraton Manufacturing are
1) Highly capable engineering staff
2) Strong reputation for quality work
3) Good management
4) A large number of loyal customers
These items are not listed on Sheraton’s balance sheet. However, they obviously have
value and therefore should be included in the purchase price of the business.
Determining the Value of Goodwill
The value of goodwill is established by comparing the present value of future cash
earnings with the fair market value of a firm’s other assets, less liabilities. The
difference between the two is the value of goodwill.
The key to determining the value of goodwill is, of course, estimating the present value
of future cash earnings. In the case of Sheraton Manufacturing, we can do this by
accomplishing a cash flow analysis similar to the ones we perform in our capital
budgeting process.
Let me know if you have any further questions about goodwill or the Sheraton
Manufacturing acquisition.
SAMPLE LETTER
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Brown and Wynne
Certified Public Accountants
201 W. Tenth Street
Austin, Texas 78712
July 15, 2014
Mr. George Smith
Heritage Manufacturing Company
301 Planters Road
Austin, Texas 78712
Dear Mr. Smith:
This letter will confirm the arrangement we discussed for the audit of Heritage
Manufacturing Company for the year ended December 31, 2014.
The purpose of the audit will be to examine Heritage Company’s financial statements
for the year ended December 31, 2014. Our examination will be conducted in
accordance with generally accepted auditing standards, and we will use the tests and
procedures necessary to express an opinion on the fairness of the financial statements.
As part of our audit, we will review the internal control system and conduct tests of
transactions. Although these procedures may disclose material errors or illegal acts, a
possibility remains that we may not discover irregularities during the course of the audit.
At the close of our examination, we will issue our report on the audit. We will also
prepare your federal and state income tax returns for the year ended December 31, 2014.
Both the audit report and the tax returns should be completed by about March 15, 2015.
Our fees will be at our regular rates, based on the time required to perform these
services. We will bill you when we have completed the work.
We are pleased that you have appointed us to be your auditor, and we look forward to
working with you and your staff.
Sincerely,
Carla Brown
Carla Brown, CPA
Accepted by:
Date:
GUIDELINES FOR LETTERS AND MEMOS
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Introduction:
1. Identify the subject of the letter or memo. Be explicit; relate the topic to your reader’s
interests and concerns.
2. Explain why you’re writing, if necessary. For example, you might be writing at
someone else’s request or in response to an earlier communication.
3. Identify the issues you will discuss, if they’re not obvious from what you’ve already
said.
4. Summarize your conclusion and/or recommendations.
Note: Items 3 and 4 can often be combined. Avoid unnecessary repetition, and write as
concisely as possible.
Body of the Letter or Memo:
1. Divide the body into major sections, perhaps one major section for each issue or
conclusion listed in your introduction.
2. Consider whether headings will make your letter or memo easier to follow.
3. Begin each section with the main idea of the section. Use transitions as necessary to
preserve a smooth flow of thought.
4. Discuss issues from most important to least important. Consider this question from
the reader’s point of view.
5. Limit most paragraphs to four or five sentences. Begin each paragraph with a topic
sentence.
6. Discuss the issues in the context of the reader’s situation. Support your conclusions
with facts and examples with which the reader is familiar.
Conclusion:
The conclusion of a letter or memo should give the reader a sense of closure. The type of
conclusion you write depends on the document as a whole. Here are some possibilities:
1. A letter should end with a conventional courteous closing. A memo may also end
with such a closing, depending on the custom of the organization where you work.
Example:
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If you have any further questions about . . . (the topic of the letter or memo), I’ll be
glad to help you.
2. You can suggest a follow-up to your letter or memo: what you want the reader to do or
what you will do.
3. Some memos don’t need conclusions because the final paragraph of the text provides
the needed closure.
4. For long documents, it’s usually a good idea to summarize your main ideas in the
conclusion.
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PARTS OF A FORMAL REPORT
Transmittal document
Title page
Table of contents
List of illustrations
Executive summary
Introduction
Body of report
Conclusion
Appendices
Notes (if end notes are used)
Bibliography (or reference list)
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Peer Review Process⎯Directions
During this peer review process, you will review the working draft written by another student in
this class. Use the following steps when you review a draft:
1. Quickly skim the entire draft to get a feeling for the organization and completeness.
2. Read the peer review guidelines so that the criteria are fresh in your mind.
3. Read the draft carefully, considering all the guidelines for a peer review. Mark in the
margins of the draft the places that need revision, and identify the problem.
4. Fill in the Peer Review Summary, noting the paper’s strengths and outlining your
suggestions.
Try very hard to be genuinely helpful. Also maintain a positive attitude toward the draft,
encouraging the author to even greater excellence!
When you hand in the final copy of your own paper, also hand in the following:
1. Your draft(s) with the reviewer’s marginal comments.
2. The Peer Review Summary(ies) filled in by your reviewer(s).
3. The Peer Review Evaluation.
Use a large, strong paper clip or binder clip to bind all your papers together. Put the final draft of
your paper on top.
NOTE TO REVIEWER: Across the top margin of the first page of the papers you review,
identify yourself as the reviewer:
Reviewed by _______________________________
Your name