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Auditing a Publicly Traded CompanyACC/541MEMORANDUMTO: Senior Management FROM: Staff I - Team A DATE: March 26, 2012SUBJECT: Audit of a Publicly Traded CompanyEnsuring a companys accounting treatment of the share-based payment and accounting consolidation theory abides the Generally Accepted Accounting Principles (GAAP) is vital to their success. Through proper research and understanding of the rules the company will be on their way to a profitable business. In this memo, Team A will assess the share-based payment reporting and the special purpose entities (SPE) reporting for Company 123. During the investigation Team A have paid close attention to the accounting treatment of the share-based payment and accounting consolidation theory as it relates to special purpose entities. A share-based payment transaction occurs when the entity obtains goods/services by two methods: 1. Through a share-based payment agreement with the company or person,2. They acquire the commitment to resolve the debt through a share-based payment agreement when another company obtains goods.A share-based payment transaction can be settled by the following: 1. Equity,2. Cash,3. Equity/cashThere are requirements with a share-based payment transaction when reporting on the companys financial reports: 1. When shares increase the equity component must increase, 2. If the payment for the goods/services does not symb

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