Key Business Risk Factors:
Now onto the probable material misstatements:
II. Risk Assessment Case (20 points) You are the manager at Anaheim & Allen LLP, a...
*Please only answer #3* Jupiler Inc. (A Business Risk Case) You are a senior auditor at Zales and Brook LLP, a CPA firm. Jupiler Drinks Inc. is a large publicly traded firm based in California and has been audited by your firm for years. You are assigned to lead the FY2007 audit of Jupiler Drinks (DB). You read previous year working papers, BD’s quarterly reports and have learned the following facts. BD is a large multinational non-alcoholic drink producer, selling...
CASE 1.3 Holton-Central Holdings Inc. Holton Chairs had been an innovative designer and producer of quality office chairs since Arnold Holton founded the firm in Grand Rapids, Michigan, in 1938. In 1947 Holton purchased Central Chairs and renamed itself Holton-Central Inc. When Mr. Holton died in 1994, long-time executives managed the firm for his heirs. Through a variety of circumstances, including foreign competition, outdated production equipment and processes, expensive wage contracts, and low quality, Holton- Central gradually became unprofitable. In...
Can somebody please explain to me how to do T Accounts for this case: By 2009, Mr. Cardell decided to acquire another office furniture company. On July 1, 2009, the Holton-Central bankruptcy judge accepted Belmont’s $4,765,000 offer for Holton-Central’s assets and accounts payable. The $4,765,000 purchase price equaled the market value of the tangible assets, minus $875,000 of accounts payable, plus $265,000, which Mr. Cardell considered goodwill: Raw material inventory $175,000 Work-in-process inventory $220,000 Finished goods inventory $115,000 Equipment (5-year...
KID CASTLE EDUCATIONAL CORPORATION AND BROCK, SCHECHTER & POLAKOFF LLP, PCAOB 10 3, 4, 5, 7, 8) PROFESSIONAL SKEPTICISM 7-58 General Background. On May 22, 2012, the audit firm of Brock Schechter & Polakoff LLP (hereafter BSP) was censured and fined 820,000 by the PCAOB in relation to its audits of public compa nies located in Taiwan and China. These public companies were listed on U.S. stock exchanges. James Waggoner, BSP's director of accounting and auditing, was the BSP auditor...
Auditing Related Party Transactions ABSTRACT As part of the risk assessment of a client firm, auditors are required to evaluate the risks of material misstatement associated with related party transactions. Related party transactions may be evaluated at a higher risk of material misstatement as they may not occur under normal market settings or they may be motivated by an intent to perpetrate fraud. This case presents information about the related party transactions and other facts surrounding the audit of a...
Auditing Related Party Transactions ABSTRACT As part of the risk assessment of a client firm, auditors are required to evaluate the risks of material misstatement associated with related party transactions. Related party transactions may be evaluated at a higher risk of material misstatement as they may not occur under normal market settings or they may be motivated by an intent to perpetrate fraud. This case presents information about the related party transactions and other facts surrounding the audit of a...
please check my answers for any errors, thank you. For question 17 to 20, please write details for each question. 2006 2005 73.5 Luther Corporation Consolidated Balance Sheet December 31, 2015 and 2005 in 5 millions) Assets Liabilities and 2006 2005 Stockholders' Equity Current Assets Current Liabilities Cash 503 58.5 Accounts payable Notes payable / short-term Accounts receivable 549 39.6 Webt Current maturities of long- Inventories 447 42.9 term debt Other current assets 16. 1 3 0 Other current liabilities...
You are to prepare a two-page (single-spaced) paper based on the case assigned. The case is listed below. Do Not Simply Answer The Questions At the End of The Case. Case Note Format Your case analysis should be in the format of a two page (not counting the reference section) single-spaced Executive Summary. The report should follow the following format in sentence/paragraph form using APA format to cite sources. You are required to cite the textbook and at least one...
1. Do you agree with Deloitte's assertion that Adams had no "substantive role" in the 2008 and 2009 Caesars audits? Defend your answer. 2. The SEC applies a principles-based approach to mitigating the risks that may undercut auditor independence. Identify the four guiding principles applied by the SEC to protect the independence of auditors of public companies. 3. Assume Adams had used his personal funds to finance his gaming activities in the Caesars casino. Under those circumstances, would he have...
please help with a detailed, fully explained answer for Question 2. thank you Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...