Question 4 (7 points) sived) Question A You are asked by Xavier- the a.docx

•Download as DOCX, PDF•

0 likes•2 views

Question 4 (7 points) sived) Question A You are asked by Xavier, the audit partner, to perform audit planning for a matnd client in a banking and finance industrv. There have been rumours in social medias that the client has been selling some high-risk financial products without proper authorisations from a government. The client h- icen quiet and never responded to the accusations. Xavier asks you to help with t allowing tasks. (i) Explain two inherent risks for the client. (ii) Assume that control risks are in the same direction as inherent risks. Identify the level of detection risk for the client. (iii) Identify audit strategy for the client. ( 4 marks) Question. E You are auditing Enid Ltd, a publicly listed company. Enid s partial firanciat statements are shown in the followine. During the year 2023, Enid changed the depreciation method from straight line to double declining method. Enid also refinanced its debt with a contractual commitment that requires its debt-to-equity ratio to be at least 1 : 1 at all times. (i) Calculate a materiality for the year 2023 and explain your reason. (ii) Explain the practical implication of the change in a depreciation method on you as you are auditing Enid. (3 marks) .

Similar to Question 4 (7 points) sived) Question A You are asked by Xavier- the a.docx

Fin 571 guide 1

sububhavithra

35) Whenever projects are both independent and conventional, then the IRR and NPV methods agree. Which of the following statements is true? A. A mutually exclusive project is one that can be chosen independently of other projects. B. When undertaking one project prevents investing in another project, and vice versa, the projects are said to have a positive payback. C. A conventional project is a project with an initial cash outflow that is followed by one or more expected future cash inflows. D. all of these

Fin 571 guide 1 35) Whenever projects are both independent and conventional, ...

sububhavithra

Fin 571 guide 1 33) Boeing Corporation is a world leader in commercial aircra...

sububhavithra

Fin 571 guide 1 40) There can be a variety of motives for stock repurchases i...

sububhavithra

Fin 571 guide 1 38) Studies show systematic differences in capital structures...

sububhavithra

Fin 571 guide 1 41) There can be a variety of motives for stock repurchases i...

sububhavithra

Fin 571 guide 1 34) Net present value ( NPV) is the difference between ______...

sububhavithra

Fin 571 guide 1 39) A firm cannot simply adopt the industry average debt rati...

sububhavithra

Q_FIN 571 Final Exam.doc Final Exam Please provide your answers as follows in the Assignment newsgroup (Excel spreadsheet is preferred): 1. A 2. B 3. B, etc Chapter 1 The Goals and Functions of Financial Management Multiple Choice Questions 1. What is the primary goal of financial management? A) Increased earnings B) Maximizing cash flow C) Maximizing shareholder wealth D) Minimizing risk of the firm 2. The partnership form of organization A) avoids the double taxation of earnings and dividends found in the corporate form of organization. B) usually provides limited liability to the partners. C) has unlimited life. D) simplifies decision making. 3. Increased productivity due to technology has A) increased corporations' reliance on debt for capital expansion needs. B) created larger asset values on the firm's historical balance sheet. C) made it cheaper (in terms of interest costs) for firms to borrow money. D) helped to keep corporate costs in check. 4. Insider trading occurs when A) someone has information not available to the public which they use to profit from trading in stocks. B) corporate officers buy stock in their company. C) lawyers, investment bankers, and others buy common stock in companies represented by their firms. D) any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. Chapter 2 Review of Accounting 5. When a firm's earnings are falling more rapidly than its stock price, its P/E ratio will: A) remain the same B) go up C) go down D) could go either up or down 6. The net worth of a firm A) is usually the same as the firm's market value. B) is based on current asset costs. C) is based on current liabilities. D) none of the above. 7. A statement of cash flows allows a financial analyst to determine A) whether a cash dividend is affordable. B) how increases in asset accounts have been financed. C) whether long-term assets are being financed with long-term or short-term financing. D) all of the above 8. A firm has $200,000 in current assets, $400,000 in long-term assets, $80,000 in current liabilities, and $200,000 in long-term liabilities. What is its net working capital? A) $120,000 B) $320,000 C) $520,000 D) none of the above Chapter 3 Financial Analysis Multiple Choice Questions 9. The ______________ method of inventory costing is least likely to lead to inflation-induced profits. A) FIFO B) LIFO C) Weighted average D) Lower of cost or market 10. The Bubba Corp. had net income before taxes of $200,000 and sales of $2,000,000. If it is in the 50% tax bracket its after-tax profit margin is: A) 5% B) 12% C) 20% D) 25% 11. XYZ's receivables turnover is 10x. The accounts receivable at year-end are $600,000. The average collection period is 90 days (3 months). What was the sales figure for the year? A) $60,000 B) $6,000,000 C) $24,000,000 D) none of the above 12. A firm ha ...

Q_FIN 571 Final Exam.docFinal ExamPlease provide your answ.docx

catheryncouper

June 2012 Examiner Report

Takshila Learning Pvt. Ltd.

Acct 220 homework and quizzes

arnitaetsitty

FINANCIAL MANAGEMENT,WCM MOST IMPORTANT AND EXPECTED MCQ.pptx

commercemanagement2

1. To prevent fraudulent shipments of merchandise, organizations should: a. Match every receiving slip to an approved purchase order. b. Match every outgoing shipment to a sales order. c. Make sure that all increases to perpetual inventory records are supported by proper source documents. d. All of the above 2. Of the following, which is the best method for detecting the theft of inventory? a. Have the warehouse manager personally oversee bi-monthly inventory counts. b. Have someone from purchasing conduct inventory counts every quarter. c. Have a designated person in customer service follow-up with customers who have complained about short shipments. d. Match vendor addresses against employee addresses. 3. Which of the following procedures would be least helpful in preventing larceny of non-cash assets? a. Segregating the duties of sales and accounts payable b. Installing surveillance cameras in the warehouse and on sales floors c. Creating access logs to track employees that enter restricted areas d. Employing security guards at the entrance of the warehouse 4. Unexplained increases in inventory shrinkage can be a red flag that signals which type of fraud scheme? a. Fictitious refunds b. Inventory larceny c. Sales skimming d. All of the above 5. Which of the following computer audit tests can be used to detect purchasing and receiving schemes? a. Identifying dormant customer accounts for the past six months that show a sale in the last two months of the year b. Calculating the ratio of the largest sale to the next largest sale by customer c. Extracting all inventory coded as obsolete and possessing reorder points within the inventory system d. All of the above 6. Andy Kaplan is a foreman for JCP Enterprises, a regional construction company. He recently ordered some plumbing supplies from the company warehouse for an office building project he is overseeing. When the supplies arrived at the job site, however, he loaded them in his truck and took them home to use in remodeling his master bathroom. What kind of inventory theft scheme did Andy commit? a. False shipments b. Unconcealed larceny c. Asset requisition d. Misappropriation of intangible assets B 1. ___________________ is the offering, giving, receiving, or soliciting of something of value as a reward for a favorable decision. a. Business diversion b. Economic extortion c. Illegal gratuity d. Commercial bribery 2. The offering, giving, receiving, or soliciting of something of value for the purpose of influencing a business decision without the knowledge or consent of the principal is known as: a. Official bribery b. Commercial bribery c. Conflict of interest d. Illegal gratuity 3. To facilitate a bribery scheme, a fraudster might divert company funds to a non-company account from which the illegal payments can be made. This account is called a: a. Slush fund b. Petty cash fund c. Bid pool d. None of the above 4. Identifying trends in over-purchased and/or obsol ...

1. To prevent fraudulent shipments of merchandise, organizations s.docx

jackiewalcutt

authority the right to direct with permission to act. centralization/decentralization the degree of delegation of decision making, authority, and power within an organization. departmentalization organizing people into different departments or divisions in which collections of tasks are place together, such as accounting, marketing, and production. formalization the presence of rules and procedures. job a set or series of tasks performed by an individual on behalf of an organization. job analysis the process of assigning tasks to jobs. job description a formal list of tasks and duties. job design what occurs when managers determine the tasks needed to be done, who will do them, and what selection criteria will be used to choose employees and place them on the job. job specification a list of the eligibility requirements or qualifications needed to perform a job. mechanistic organization characterized by high use of rules and procedures, a greater number of levels in the organization, and formal relationships between workers, and that is, as a result, a less flexible method of operation. mechanization/computerization measures the reliance on computers and technology to maintain operations. organic structures that employ few rules and procedures, have a small number of organizational levels and ranks, allow for informal relationships among workers and supervisors, and are much more flexible and adaptable as a result. organizational design the process by which managers make specific organizing choices that result in the particular kind of organizational structure they will utilize. organizational structure a formal system of task and reporting relationships that coordinates the activities of members so that they work together to achieve organizational goals. organizing the process of bringing people and resources together to create products and services in an efficient and effective manner. responsibility (or accountability) the obligation to complete tasks as assigned. standardization the use of a series of job titles that are exactly the same, and the assignment of workers to perform the same activities. Part 1 A business firm will no longer exist after it has been _________________. paid with dividends restructured with its capital components liquidated reorganized repurchased with its stock The discount rate assigned to an individual project must be estimated according to I. the firm's depreciation rate for a levered firm. II. the actual sources of funding used for the project. III. an average of the firm's overall cost of capital for the past five years. IV. none of the above statements is correct. I only II, III and V only II only IV only III and IV only The net present value (NPV) of a project can be reduced by I. moving each of the cash inflows forward to a sooner time period II. increasing the required discount rate III. increasing the amount of the final cash inflow IV. decreasing the project's initial cost at time z ...

authority the right to direct with permission to act.centralizat.docx

ikirkton

Claimppt

Pankaj Kumar Kar

Questions None of these questions has a style component, thus you don't have to write in complete sentences and well-formed paragraphs. You can use lists where appropriate if you want. 1) You have been approached by a local lumber producer who specializes in buying logs that have been thinned from the local forests around Las Vegas, NM and turning them into high quality lumber for things like flooring and molding in homes and businesses. The firm is a small, closely held corporation where the founder and his family members hold all the stock and, therefore, does not register with the SEC. You will be doing the first external audit that this firm has had done in its short lifetime. You currently are a member of the AICPA and you are a CPA with a license to practice in New Mexico. a) Develop a checklist of five areas or issues that you would want to research before you accepted this firm as an audit client and give an example of where you might go to get some information about each issue. Also, explain why you selected the area or issue, other than it is required by standards. That is, I want an explanation how the information might affect your client acceptance decision. Make your explanation and selections specific to this firm. b) Describe three organizations, boards, or groups that have legal authority to regulate aspects of your audit of this client and discuss how that organization, board, or group would regulate your work on this audit. c) Describe two reasons why this firm might be seeking an audit. I am looking for substantive reasons that show that you understand the importance of auditing in capital markets. That is, I am not just looking for a possible transaction the firm might engage in that might be facilitated by an audit. I want an explanation of how an audit would facilitate that transaction. 2) Each of the following situations involves a possible violation by a member in industry of the AICPA's Code of Professional Conduct. For each situation, indicate whether it violates the Code. If it violates the Code, indicate which rule is violated and explain why. If you don't think it violations a rule, explain why as well. 2. Mitch Rider is the partner-in-charge of the audit of ABC, Inc. Over the years, he has become a golfing buddy of ABC's CEO, Shelly Rhoades. During the current year Rider and Rhoades jointly purchased an exclusive vacation home in North Carolina. The vacation home represents more than 10 percent of Rider's personal wealth. a) You are auditing a firm that you have audited for years. However, the auditee has yet to pay their full fee from last year's audit and you have turned the matter over to a collection agency. b) During the audit of a client, you found that the manager on the job had not reviewed a staff accountant's verification of the auditee's inventory balance at year-end. The client was a manufacturing firm and inventory represented 30% of their assets. c) During the a ...

QuestionsNone of these questions has a style component, thus y.docx

catheryncouper

Edp mcq 3, Entrepreneurship Development Programme MCQS, Dr MAmata rathi

Dr Mamta's Educational Plex Dr Mamata Rathi

(10) 4E AIS (Sat_ 10-12-2022) Ch.5_TB.pdf

ahmed490878

Webinar: Partnering for success in a digital world

The Digital Insurer

Renewing your insurance in today’s market is more difficult and time-consuming than ever before. Due to the hard market, COVID-19 impacts and significant catastrophic losses in the past several years, insurers are imposing more coverage restrictions. Preparing responses in advance to questions underwriters are asking about COVID-19’s impact will put your organization in the best position to successfully negotiate your insurance renewal.

CBIZ BFS Reprint - Underwriter Questions to Expect Post-COVID-19

CBIZ, Inc.

More from HarryXQjCampbellz

Question 69 x Identify the vessels enclosed within the white box- Sele.docx

Question 4 (7 points) sived) Question A You are asked by Xavier- the a.docx

Recommended

Recommended

More Related Content

Similar to Question 4 (7 points) sived) Question A You are asked by Xavier- the a.docx

Similar to Question 4 (7 points) sived) Question A You are asked by Xavier- the a.docx (20)

More from HarryXQjCampbellz

More from HarryXQjCampbellz (20)

Recently uploaded

Recently uploaded (20)

Question 4 (7 points) sived) Question A You are asked by Xavier- the a.docx