FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Question
Chapter 3, Problem 57CP
a.
To determine
Delineate the ethical consideration faced by person J while answering the auditor’s question.
b.
To determine
Explain the manner in which person J should respond to the question of the auditor.
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Accounting & Finance - Auditing
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Mary Tan is the controller for Duck Associates, a property management company in
Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external
auditors about payroll accounting. This year, the auditors suggest that Tan consider
outsourcing Duck Associates's payroll accounting to a company specializing in payroll
processing services. This would allow Tan and her staff to focus on their primary
responsibility: accounting for the properties under management. At present, payroll
requires 1.5 employee positions-payroll clerk Toby Stock and a bookkeeper who
spends half her time entering payroll data in the system.
meniups/l
Tan considers this suggestion, and she lists the following items relating to out-
sourcing payroll accounting:
a. The current payroll software that was purchased for $4,000 three years ago would
not be needed if payroll processing were outsourced.
b.
uck Associates's bookkeeper would spend half her time preparing the weekly
payroll input form that…
Donovan Ramsey, the Chief Financial Officer of LevelUp Business Consulting, has advised you that the company is considering closing its Calgary, Alberta office at the beginning of the next calendar year and transitioning the staff of that location to permanent work from home employees. The employees home offices would not be considered a permanent establishment of the employer.
Eight staff members currently report to the Alberta office, and the total payroll is $775,000.00.
The organization’s head office and payroll department are in Mississauga, Ontario. The current Ontario payroll is $4,750,000.00.
You have been asked to prepare an analysis showing how closing this permanent establishment in Alberta will impact the employee’s coverage for provincial healthcare and the organization’s payroll expense for provincial health taxes.
Be specific in your analysis by providing a comparison of current versus projected costs that may result from this change.
Chapter 3 Solutions
FINANCIAL ACCOUNTING
Ch. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - Prob. 5Q
Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10QCh. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - Prob. 16QCh. 3 - Prob. 17QCh. 3 - Prob. 18QCh. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21MECh. 3 - Prob. 22MECh. 3 - Prob. 23MECh. 3 - Prob. 24MECh. 3 - Prob. 25MECh. 3 - Prob. 26MECh. 3 - Prob. 27MECh. 3 - Prob. 28MECh. 3 - Prob. 29MECh. 3 - Prob. 30MECh. 3 - Prob. 31ECh. 3 - Prob. 32ECh. 3 - Prob. 33ECh. 3 - Prob. 34ECh. 3 - Prob. 35ECh. 3 - Prob. 36ECh. 3 - Prob. 37ECh. 3 - Prob. 38ECh. 3 - Prob. 39ECh. 3 - Prob. 40PCh. 3 - Prob. 41PCh. 3 - Prob. 42PCh. 3 - Prob. 43PCh. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49PCh. 3 - Prob. 50PCh. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - Prob. 53PCh. 3 - Prob. 54PCh. 3 - Prob. 55CPCh. 3 - Prob. 56CPCh. 3 - Prob. 57CPCh. 3 - Prob. 58CP
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