| While the traditional role of the independent public accountant is often thought of as helping the start-up and on-going business, the recent weak economy has created a new demand for the certified public accountant's services. As more and more companies are in financial distress, the CPA must become well versed in the area of bankruptcy.;The accountant plays a vital role in bankruptcy. The accountant can be an effective advisor in all three stages of bankruptcy, namely, the period prior to bankruptcy, during bankruptcy, and following the bankruptcy of a company.;This thesis addresses the areas that accountants need to understand to assist their clients through bankruptcy. Specifically, the bankruptcy code is summarized, the signs to identify a company in distress are presented, and alternatives to bankruptcy are discussed. In addition, the profession's financial reporting standards are explained and the tax implications of a company in bankruptcy are highlighted. |
