The project for ACCT 4323-02R is to analyze the Gamestop October 29, 2014, Response to the September 29, 2014, SEC Comment Letter. This assignment is focused on the following issue raised in the comments letter.
Note 1. Nature of Operations and Summary of Significant Accounting Policies, page F-9
Basis of Presentation and Consolidation, page F-9
We note your disclosure that you revised the presentation of outstanding checks in your prior period financial statements. You state that you previously reduced cash and liabilities when checks were presented for payment and cleared your bank accounts, and currently, as of February 1, 2014, you reduce cash and liabilities when the checks are released for payment. Please tell us whether your revised presentation of outstanding checks represents a change in accounting principle or an error pursuant to ASC 250 and provide the basis for your conclusion. If you conclude that this was an error, please address the following:
Please tell us why you did not indicate that the previously issued financial statements have been restated to correct an error. Refer to ASC 250-10-50-7.
Please tell us how the error was identified.
Please tell us how you considered the error when concluding on the effectiveness of your disclosure controls and procedures and internal controls over financial reporting.
Please tell us what consideration you gave to filing an Item 4.02 Form 8-K regarding non-reliance on previously issued financial statements.
Tasks:
Perform basic Internet research to identify a free-to-use sophisticated large language models (LLMs), like OpenAI’s ChatGPT, but preferably a model similar to in capability to ChatGPT 4.0 (this is a pay version). If you are unable to find a free-to-use LLM similar in capability to ChatGPT 4.0 , use the free version of ChatGPT 3.5.
Using a LLM, perform the following tasks:
Using the data from the SEC Comment Letter, Gamestop Response, and Key Terms/Possible Data Sources, prepare prompts to generate:
•The definition of a bank overdraft, book overdraft, and check outstanding.
•The criteria for a change in accounting principle
•The criteria for an error correction.
•The results of comment letters since 2000 related to reducing cash and liabilities when checks were presented for payment and cleared the bank accounts.
•The results of comment letters since 2000 related to reducing cash and liabilities when the checks are released for pay.
•The criteria for reducing liabilities.
•The criteria for control over financial assets.
Deliverable:
1. Prepare a sumbission document that shows your prompts and generated output for each task.
2. Based on your experience using prompt engineering, prepare a memo discussing what you have learned about prompt engineering. Discuss the following:
What made your prompts more or less successful? Provide examples.
How accurate were your prompts? Identify any hallucinations and how identified?
3. Based on the outcome of your prompts, prepare a memo stating whether you agree or disagree with Gamestop and the SEC that the change was an error correction and why?
