Homework Answers
Option B ------- Related Party transactions
Same is to be considered as related party transaction since officer of the company holds the pre existing relationship with company, much before the transaction held. Transaction is not done at arm's length price. Conflict of interest arises since purchased at an excess of asking price of land.
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An independent auditor finds that the Simmer Corporation purchased land owned by an officer of the...
Multiple Choice Questions!! Please choose the correct answers wisely. 1) During the audit the independent auditor...
Multiple Choice Questions!! Please choose the correct answers wisely. 1) During the audit the independent auditor identified the existence of a weakness in the client's internal control and communicated this finding in writing to the client's senior management and those charged with governance. The auditor should : a) Consider the weakness a scope limitation and therefore disclaim an opinion. b) Suspend all audit activities pending directions from the client's audit committee. c) Withdraw from the engagement. d) Consider the effects...
25. In a large public corporation, evaluating internal control procedures should be responsibility of: Multiple Choice...
25. In a large public corporation, evaluating internal control procedures should be responsibility of: Multiple Choice a.Accounting management staff who report to the CFO. b. Operations management staff who report to the chief operation officer. c. Security management staff who report to the chief facilities officer. d. Internal audit staff who report to the board of directors. 28. Management philosophy and operating style would have a relatively less significant influence on a firm's control environment when: Multiple Choice Accurate management...
U YUSUN DE VOUS attempt View previous attempt Palomino Corporation purchased land from its 60%-owned subsidiary....
U YUSUN DE VOUS attempt View previous attempt Palomino Corporation purchased land from its 60%-owned subsidiary. Salmon Inc, in 2016 at a cost $30,000 greater than Salmon's book value. In 2019, Palomino sold the land to an outside entity for $40,000 more than Palomino's carrying amount. The 2019 consolidated income statement reported again on the sale of land of Multiple Choice O $70.000 558.000 $42.000 < Prev 9 Next > You received no credit for this question in the previous...
Required information Parent Corporation purchased land from St Corporation for $220,000 on December 26, 20X8. This...
Required information Parent Corporation purchased land from St Corporation for $220,000 on December 26, 20X8. This purchase followed a series of transactions between P-controlled subsidiaries. On February 15, 20X8, S3 Corporation purchased the land from a nonaffiliate for $160,000. It sold the land to S2 Company for $145,000 on October 19, 20X8, and S2 sold the land to S1 for $197,000 on November 27, 20X8. Parent has control of the following companies: Subsidiary Level of Ownership 80 percent 70 percent...
5-1 -2 -4 545. Multiple Choice Questions Select the best answer for each of the following...
5-1 -2 -4 545. Multiple Choice Questions Select the best answer for each of the following questions. Explain the reasons for your selection a. Which of the following is not a financial statement assertion made by management? (1) Existence of recorded assets and liabilities. (2) Completeness of recorded assets and liabilities. (3) Valuation of assets and liabilities. (4) Effectiveness of internal control b. Which of the following business characteristics is not indicative of high inherent risk? (1) Operating results that...
Question 5 (20 marks)Your firm, WWW LLP, is the auditor of Walnut Ltd. The auditor’s report...
Question 5 (20 marks)Your firm, WWW LLP, is the auditor of Walnut Ltd. The auditor’s report below was drafted by Beanie Junior, a staff accountant at the firm. Walnut Ltd. is a publicly-held company (incorporated under the Canada Business Corporations Act and traded on the Toronto Stock Exchange) with a year end of December 31, 2018. The report was submitted to the engagement partner who reviewed the audit working papers and properly concluded that an unmodified opinion should be issued....
Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee
1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...
Hide-It (HI), a family-owned business based in Tombstone, Arizona, builds custom homes with special features, such...
Hide-It (HI), a family-owned business based in Tombstone, Arizona, builds custom homes with special features, such as hidden rooms and hidden wall safes. Hide-It has been an audit client for three years. You are about to sign off on a “clean” opinion on HI’s current annual financial statements when Art Hyde, the VP-Finance, calls to tell you that the Arizona Department of Revenue has seized control of a Hide-It bank account that includes about $450,000 of company funds; the account...
Review the Audit report (found in the 10-K) for the following two companies. Highlight or summarize...
Review the Audit report (found in the 10-K) for the following
two companies. Highlight or summarize
differences between the reports (other than the name of Company,
Audit Firm, Financial statement
period covered).
Note:
1. Each Company may have two audit reports (one opinion on
financial statements and one for
audit of internal controls) or the two opinions may be combined
into one report.
2. You are not required to review the entire 10-K. Find the
audit report in the 10-K...
B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements...
B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements for becoming a CPA include all but which of the following A) Uniform CPA examination requirement B) Educational requirements C) Character requirements D) Experience requirement 2) The International Standards on Auditing (ISAs) A) are issued by the AICPA B) override a country's regulations governing the audit of a company C) has many of the same standards as the Auditing Standards Board (ASB) D) must...
U YUSUN DE VOUS attempt View previous attempt Palomino Corporation purchased land from its 60%-owned subsidiary. Salmon Inc, in 2016 at a cost $30,000 greater than Salmon's book value. In 2019, Palomino sold the land to an outside entity for $40,000 more than Palomino's carrying amount. The 2019 consolidated income statement reported again on the sale of land of Multiple Choice O $70.000 558.000 $42.000 < Prev 9 Next > You received no credit for this question in the previous...
Required information Parent Corporation purchased land from St Corporation for $220,000 on December 26, 20X8. This purchase followed a series of transactions between P-controlled subsidiaries. On February 15, 20X8, S3 Corporation purchased the land from a nonaffiliate for $160,000. It sold the land to S2 Company for $145,000 on October 19, 20X8, and S2 sold the land to S1 for $197,000 on November 27, 20X8. Parent has control of the following companies: Subsidiary Level of Ownership 80 percent 70 percent...
5-1 -2 -4 545. Multiple Choice Questions Select the best answer for each of the following questions. Explain the reasons for your selection a. Which of the following is not a financial statement assertion made by management? (1) Existence of recorded assets and liabilities. (2) Completeness of recorded assets and liabilities. (3) Valuation of assets and liabilities. (4) Effectiveness of internal control b. Which of the following business characteristics is not indicative of high inherent risk? (1) Operating results that...
Review the Audit report (found in the 10-K) for the following
two companies. Highlight or summarize
differences between the reports (other than the name of Company,
Audit Firm, Financial statement
period covered).
Note:
1. Each Company may have two audit reports (one opinion on
financial statements and one for
audit of internal controls) or the two opinions may be combined
into one report.
2. You are not required to review the entire 10-K. Find the
audit report in the 10-K...
B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements for becoming a CPA include all but which of the following A) Uniform CPA examination requirement B) Educational requirements C) Character requirements D) Experience requirement 2) The International Standards on Auditing (ISAs) A) are issued by the AICPA B) override a country's regulations governing the audit of a company C) has many of the same standards as the Auditing Standards Board (ASB) D) must...
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