In the audit of the James Mobley Company, you are concernedabout the possibility of contingent liabilities resulting from a patent dispute. Discuss theprocedures you could use for an extensive investigation in this area.
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In the audit of the James Mobley Company, you are concerned
about the possibility of
procedures you could use for an extensive investigation in this area.
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- Which of the following questions would an auditor likely include on an internalcontrol questionnaire for notes payable?(1) Are assets that collateralize notes payable critically needed for the entity’s continued existence?(2) Are two or more authorized signatures required on checks that repay notes payable?(3) Are the proceeds from notes payable used for the purchase of noncurrent assets?(4) Are direct borrowings on notes payable authorized by the board of directors?For how long does the Sarbanes–Oxley Act require auditors ofpublic companies to retain audit documentation?Which of the following assets is classified as Trading Stock? Select one:Property acquired by an employee who plans to rent it outShares acquired by an investor who hopes to hold the shares for at least 12 monthsTelevisions acquired by a hotel owner who plans to install it in hotel roomsLand acquired by a property developer for the purpose of resale
- -Discuss and explain the expectations gap. In your answer include how it relates to both the finance and accounting professions and its importance. -List and explain the 3 of the 5 fundamental principles of ethics for members in relation to APES110. -Outline and explain the 3 steps of the conceptual framework of APES110 developed to assist members to manage threats associated with companies with fundamental principles -Explain with examples the use of safeguards in relation to the conceptual framework and the fundamental principles of APES110How should CPA's evaluate risks to integrity and objectivity when considering providing gifts to audit clients and/or client management or accepting risks from them?You are a staff associate at a major public accounting firm and graduated from college two years ago. You are working on an audit for a small, non-profit religious publishing firm. After performing tests on the royalty payables system, you discover that for the past five years, the royalty payable system has miscalculated the royalties it owes to authors for their publications. The firm owes almost $100,000 in past due royalties. All of the contracts with each author are negotiated differently. However, each author’s royalty percentage will increase at different milestones in books sold (i.e., 2% up to $10,000 and 3% thereafter). The software package did not calculate the increases, and none of the authors ever received their increase in royalty payments. At first you can’t believe that none of the authors ever realized they were owed their money. You double check your calculations and then present your findings to the senior auditor on the job.Much to your surprise, his suggestion is…
- Please solve all questions. You are the manager responsible for the audit of Kicap Manis Berhad, a listed company, for the year ended 31 December 2019. The main business activity of Kicap Manis Berhad is the manufacture of farm machinery. The audit work has been completed, and you are reviewing the working papers in order to draft a report to those charged with governance. During the audit of property, plant and equipment (PPE), the audit team found no material misstatement but the following issues have come to your attention. It was discovered that authorization had not been gained for the purchase of office equipment with a cost of RM315,000. The officer in charge of the purchase claimed that the management has conveyed their agreement with the purchase in the management team monthly meeting, but the audit team has not been furnished with such minutes of meeting even after numerous requests. The client is using an internally developed PPE system, PropertyCare, to maintain the records…Define 5 procedures an auditor should perform to collect relevant information for his or her decision before accepting an engagementWhat is the main reason lenders pay borrowers' property taxes through a pre-paid escrow account? It prevents a tax lien from being applied to the home. The tax lien would be senior to the mortgage lien. It prevents the borrower from refinancing with another lender because they would lose all of their escrow funds. It allows the lender to earn interest on the pre- paid tax money as itsits in the account. It allows the lender to take advantage of corporate tax deductions.
- Jeremy is considering a corporate recapitalization as a gifting technique and has come to his financial planner for more information. Which of the following statements regarding corporate recapitalization are CORRECT? The stock is recapitalized and divided into nonvoting preferred stock and voting common stock. Jeremy retains control of the corporation through the voting rights associated with his preferred stock. Recapitalization can be used in any corporation. The gift of stock given to the junior family members may qualify for valuation discounts. A) II, III, and IV B) I and III C) II and IV D) I and IIRead the Wall Street Journal article, "Boeing Board Accused in Lawsuit of Lax Oversight During 737 MAX Crisis." This lawsuit is a great example of "shareholder activism." Boeing's shareholders took action when they felt the management failed to maximize their long-term value, and the board of directors failed to fulfill its fiduciary obligation to protect the interests of the shareholders. Respond to the following questions based on theories and concepts in Chapter 9. Q3-1. What are the role and duties of the broad of directors in corporate governance? Assuming Boeing shareholders' complaints are true in this lawsuit, in what ways did Boeing's board fail to fulfill its fiduciary duties to the shareholders? Q3-2. Assuming the shareholders' complaints are true, what are some likely reasons that Boeing's board failed to effectively fulfill its duties? Q3-3. We learned in Chapter 9 the importance of making sure the management acts in the best interests of shareholders. After reading the…What four methods of investigation constitute the fraud triangle plus inquiry approach to investigations? 1. Theft Investigative Methods 2. Conversion Investigative Methods 3. Concealment Investigative Method 4. Inquiry Investigative Methods This study examines the real world case of the Peregrine fraud. In this fraud, the CEO Russell Wasendorf, Sr. duped the auditors and the public for years. Wasendorf was able to carry out a fraud using an unsophisticated scheme involving falsified bank statements and falsified audit evidence. Only when an electronic confirmation services was used by the auditors did the fraud unravel. This case provides interesting discussion points for an auditing, fraud detection and deterrence, forensic accounting or ethics class. Students typically need one to two hours of time outside of class to complete the case and instructors should budget approximately one to one and a half hours of class time to discuss the case after…