The document summarizes key information from Chapter 1 and 2 of an accounting textbook. It includes sample problems and discussions on: [1] interest rates for loans requiring different levels of assurance; [2] costs associated with different loan options for a company; [3] benefits of an audit; [4] evaluating evidence in an audit; and [5] establishing criteria and scope for an operational audit. It also discusses arguments for and against the Sarbanes-Oxley Act and considerations for audits being filed with the SEC.
- Banc of California reported higher 4Q19 net interest margin of 3.04%, an 18 basis point increase driven by lower cost of funds and stable earning asset yields.
- Noninterest expenses declined 5% from a year ago to $47.2 million due to continued expense management.
- Asset quality remained stable with nonperforming loans at 0.73% of total loans and allowance for loan losses coverage at 133% of nonperforming loans.
Theory and Practice: Changes to OMB Single AuditSikich LLP
This document provides a summary of changes to the Office of Management and Budget's (OMB) single audit guidance and implementation of the Uniform Guidance. It discusses key changes such as combining multiple OMB circulars into one comprehensive guidance, the application and effective date of December 26, 2014 for grants initiated by the federal government, and new requirements for financial management systems, subrecipient monitoring, and determining conflicts of interest. The presentation aims to help organizations effectively implement the new single audit guidance and avoid related audit findings.
Please join Unanet's Kim Koster, and BDO's Senior Associate, Tetiana Gervis, CPA , for an informative session to help in understanding your upcoming Incurred Cost Submission (ICS). The webinar will provide Government Contractors with an introduction to Incurred Cost Submissions, overview of preparation techniques and best practices, and common mistakes which could lead to scrutiny from the DCAA. Additionally, we will provide an update on the most recent DCAA audit trends.
You will learn about:
• Current ICS audit landscape
• General overview of the requirements of an ICS
• ICS schedules explanations
• ICS timeline and submission
• Common mistakes when preparing the submission and how these mistakes could lead to inadequacies and/or inquiries from the DCAA
If you would like to join Unanet for an upcoming webinar, please visit us at; https://www.unanet.com/webinars
The document discusses factoring, which is when a business sells its accounts receivable to a third party called a factor in exchange for immediate cash. It defines factoring and outlines the key parties involved, including the client/seller, factor, and buyer. It describes the services factors provide, such as financing, account maintenance, debt collection, and credit risk protection. It then explains the process of factoring transactions and some of the common types of factoring arrangements.
Risk Based Approach Bachir El Nakib July 2009 [Compatibility Mode]bashirnakib
The document discusses building a risk profile and outlines a risk-based approach to anti-money laundering compliance. It covers developing risk-based know-your-customer procedures, identifying different types of risks, and enhancing due diligence for high-risk customers. The document also discusses regulatory concerns, compliance requirements and recent enforcement actions to emphasize the importance of a robust risk-based approach.
1.C Conventional Chenoa Fund Programs OverviewChenoa Fund
This document provides an overview and instructions for Chenoa Fund training programs. It outlines 12 training modules that cover topics like Chenoa Fund programs, income limits, the loan application process, underwriting, locking loans, document drawing, purchasing, servicing, and why to use Chenoa Fund. It also includes details on Conventional and FHA loan products, guidelines for different FICO scores, documentation requirements, fee policies, and other program rules.
Single Audit Webinar Presentation - November 6, 2015Sikich LLP
The document discusses the impact of the Uniform Guidance on performing single audits. Some key points include:
- The Uniform Guidance consolidated and streamlined eight OMB circulars into one set of guidance. It aims to reduce administrative burden while strengthening accountability.
- Major changes under the Uniform Guidance include increasing the threshold for single audits to $750,000, revising internal control and documentation standards for compensation costs, and requiring consideration of an auditor's most recent peer review in the selection process.
- Planning procedures for single audits involve determining federal awards expended, distinguishing between subrecipients and vendors, identifying program clusters using the Catalog of Federal Domestic Assistance, and assessing overall auditee risk
Financial crime hot topics: DPA's and Correspondent BankingBovill
At our February briefing in London, we looked at the evolution of and practical approaches to two current hot topics, Deferred Prosecution Agreements (DPAs) and Correspondent Banking.
- Banc of California reported higher 4Q19 net interest margin of 3.04%, an 18 basis point increase driven by lower cost of funds and stable earning asset yields.
- Noninterest expenses declined 5% from a year ago to $47.2 million due to continued expense management.
- Asset quality remained stable with nonperforming loans at 0.73% of total loans and allowance for loan losses coverage at 133% of nonperforming loans.
Theory and Practice: Changes to OMB Single AuditSikich LLP
This document provides a summary of changes to the Office of Management and Budget's (OMB) single audit guidance and implementation of the Uniform Guidance. It discusses key changes such as combining multiple OMB circulars into one comprehensive guidance, the application and effective date of December 26, 2014 for grants initiated by the federal government, and new requirements for financial management systems, subrecipient monitoring, and determining conflicts of interest. The presentation aims to help organizations effectively implement the new single audit guidance and avoid related audit findings.
Please join Unanet's Kim Koster, and BDO's Senior Associate, Tetiana Gervis, CPA , for an informative session to help in understanding your upcoming Incurred Cost Submission (ICS). The webinar will provide Government Contractors with an introduction to Incurred Cost Submissions, overview of preparation techniques and best practices, and common mistakes which could lead to scrutiny from the DCAA. Additionally, we will provide an update on the most recent DCAA audit trends.
You will learn about:
• Current ICS audit landscape
• General overview of the requirements of an ICS
• ICS schedules explanations
• ICS timeline and submission
• Common mistakes when preparing the submission and how these mistakes could lead to inadequacies and/or inquiries from the DCAA
If you would like to join Unanet for an upcoming webinar, please visit us at; https://www.unanet.com/webinars
The document discusses factoring, which is when a business sells its accounts receivable to a third party called a factor in exchange for immediate cash. It defines factoring and outlines the key parties involved, including the client/seller, factor, and buyer. It describes the services factors provide, such as financing, account maintenance, debt collection, and credit risk protection. It then explains the process of factoring transactions and some of the common types of factoring arrangements.
Risk Based Approach Bachir El Nakib July 2009 [Compatibility Mode]bashirnakib
The document discusses building a risk profile and outlines a risk-based approach to anti-money laundering compliance. It covers developing risk-based know-your-customer procedures, identifying different types of risks, and enhancing due diligence for high-risk customers. The document also discusses regulatory concerns, compliance requirements and recent enforcement actions to emphasize the importance of a robust risk-based approach.
1.C Conventional Chenoa Fund Programs OverviewChenoa Fund
This document provides an overview and instructions for Chenoa Fund training programs. It outlines 12 training modules that cover topics like Chenoa Fund programs, income limits, the loan application process, underwriting, locking loans, document drawing, purchasing, servicing, and why to use Chenoa Fund. It also includes details on Conventional and FHA loan products, guidelines for different FICO scores, documentation requirements, fee policies, and other program rules.
Single Audit Webinar Presentation - November 6, 2015Sikich LLP
The document discusses the impact of the Uniform Guidance on performing single audits. Some key points include:
- The Uniform Guidance consolidated and streamlined eight OMB circulars into one set of guidance. It aims to reduce administrative burden while strengthening accountability.
- Major changes under the Uniform Guidance include increasing the threshold for single audits to $750,000, revising internal control and documentation standards for compensation costs, and requiring consideration of an auditor's most recent peer review in the selection process.
- Planning procedures for single audits involve determining federal awards expended, distinguishing between subrecipients and vendors, identifying program clusters using the Catalog of Federal Domestic Assistance, and assessing overall auditee risk
Financial crime hot topics: DPA's and Correspondent BankingBovill
At our February briefing in London, we looked at the evolution of and practical approaches to two current hot topics, Deferred Prosecution Agreements (DPAs) and Correspondent Banking.
By 1st December 2015, BCBS-IOSCO rules mean that all eligible financial and non-financial counterparties must be able to exchange bilateral Variation Margin (VM) and Initial Margin (IM) with their OTC derivatives counterparties. The consequences of this extend far beyond methodology, requiring a re-evaluation of the whole end to end workflow.
The document provides summaries of regulatory news from February 2019 across multiple jurisdictions and topics:
1) It addresses upcoming issues with implementing aspects of EMIR Refit and discusses reports from ESAs on regulatory sandboxes and innovation hubs. Updated bank risk dashboards show improved capital ratios but weak profitability.
2) New standards for market risk are announced with a simplified approach for smaller banks. EBA and ESMA reports address crypto-asset regulations and need for an EU-wide approach. Another report finds investment costs significantly reduce returns.
3) Draft delegated regulations on sustainable finance and sector views from FCA are published. Guidance is provided on exposures associated with high risk and on ESG disclosure. Reviews
An audit of a bank is different than other audits due to banks dealing in money as raw material and product. Banks must also comply with regulatory requirements. Major areas of a branch audit include loans, deposits, and banking operations. Loans are the largest asset and greatest risk exposure so internal controls are important. Common types of loans include overdrafts, cash finance, term loans, and export financing. Audit procedures involve verifying loan amounts, terms, and classifications.
Strategic analysis of first bank of nigeria plcTimi Oke
First Bank of Nigeria was established in 1894 and has since grown to become the largest bank in Nigeria. It has a vision of being the clear leader and bank of first choice in Nigeria. However, the banking sector in Nigeria is highly competitive with 24 major banks and low switching costs for customers. While First Bank has a strong brand and network, some competitors have developed better banking services and have also expanded across sub-Saharan Africa, giving them access to more opportunities beyond Nigeria. To maintain its leadership position, First Bank will need to continue innovating and expanding its reach beyond Nigeria.
This document provides training on regulatory compliance for tellers at Devon Bank. It begins by explaining that banks must comply with federal regulations set by agencies like the FDIC. It then details specific regulations that tellers must adhere to, including the Bank Secrecy Act, Patriot Act, and regulations around accessibility, privacy, security, and prohibited discrimination. The training emphasizes the importance of compliance and knowing applicable laws and policies to avoid penalties and protect customers. It concludes by having trainees answer practice questions to test their understanding.
IFRS 17 will represent a significant change to insurance accounting, requiring insurers to revamp financial reporting practices and financial statements.
RBC standard incorporates consistent valuation principles for assets and liabilities, a definition of qualifying capital resources and a risk-based capital requirement.
Do they compare?
This multiple choice question document tests understanding of current liabilities and contingencies. It includes questions about the definition and classification of current liabilities, contingencies, and specific current liability accounts such as accounts payable, notes payable, unearned revenue, and payroll liabilities. It also addresses the accounting treatment for compensated absences, contingencies, and the disclosure of short-term debt refinancing arrangements.
High regulatory costs for small and mid sized banksHEXANIKA
Anecdotal evidence from bankers suggests that the cost of complying usually increases with new rules and regulations when large statutory changes are made to financial laws and rules of any country or region[1]. This burden increases significantly when such changes are made especially after a financial crisis. New regulations stemming from the financial crisis has cost the six largest U.S. banks $70.2 billion as of the end of last year[2]. Between the end of 2007 and the end of 2015, regulatory fines rose by more than 100% – or $35.5 billion- according to data from policy-analysis firm Federal Financial Analytics Inc. As per Federal Financial Analytics, the reporting costs come from a mix of requirements that are specific to these banks, e.g. particular capital surcharges that apply to banks with assets over $50 billion but impose the largest cost on the six biggest banks due to their size or risk
This document summarizes recent tax developments from November 20, 2013. It discusses the federal tax legislative updates including Notice 2013-35 on bad debt regulations. It covers charge offs and issues the IRS has with agreeing that GAAP and tax definitions of worthlessness match. It outlines the two conclusive presumptions for charge offs. It also summarizes recent changes to the treatment of holding period costs for OREO according to a Generic Legal Advice Memorandum. Finally, it outlines seven major changes to the Pennsylvania Bank Shares Tax that take effect in 2014, including eliminating the moving average for equity capital and lowering the tax rate.
One of the next major challenges for insurance companies is the migration to IFRS 17, the stakeholders are
to understand the global goals of the standard. This paper is drafted in order to get a global understanding
of the standard and a high level summary of its liability measurement methodology.
Auditing in the CBS Environment was never this easy. Anand Jangid gives an insight to the Indian Chartered Accountants regarding the correct approach and methodological concepts that is to be remembered while auditing any CBS Environment.
This document provides an overview of different types of bank audits conducted in India, including statutory audit, concurrent audit, and RBI audit. It describes the objectives and key areas covered by each type of audit. The statutory audit verifies balance sheet classifications and ensures proper income recognition. Concurrent audit checks daily transactions to fill gaps between statutory audits. RBI audit assesses the bank's financial position, policies/procedures, and ability to repay depositors. The document also lists principal enactments governing bank audits and outlines the stages of an auditing process.
- Everi provides games and payments solutions for the gaming industry and generated $944.6 million in revenue over the last 12 months.
- Their games segment provides gaming machines, content, and systems to casinos, while their payments segment offers cash access and compliance services.
- Recently, Everi has extended several large contracts, expanded into new markets, and launched new licensed game content, driving continued revenue growth.
- They also recently refinanced their debt to reduce interest costs and extended debt maturities.
This document defines various types of banks such as commercial banks, regional rural banks, and development banks. It discusses their basic functions of accepting deposits and lending money. It also outlines the key regulations for bank financial statements and auditing requirements as outlined in the Banking Regulation Act of 1949. Different provisions are applicable for auditing different banks. Non-performing assets are defined as loans that have been classified as substandard, doubtful, or loss based on RBI guidelines. Asset classification and provisioning requirements are also discussed.
This document contains 5 multiple choice questions about financial concepts related to managing working capital, including cash conversion cycles, accounts receivable and payable, and capital structure. Question 1 asks which statement is correct about the working capital financing policy of a company called Swim Suits Unlimited based on its peak and off-peak balance sheet data. Question 2 asks which statement is correct about managing accounts receivable. Question 3 asks about the likely total long-term debt and equity capital for a no-growth firm following a moderate working capital financing policy. Question 4 asks about calculating the cash conversion cycle for a growing firm based on inventory, sales, cost of goods sold, accounts receivable, and accounts payable information. Question 5 asks about the
This document contains 5 multiple choice questions regarding financial statements and ratios. Question 1 asks which statement about a profitable firm's stock price is typically correct. Question 2 asks which statement correctly describes what is shown on the statement of cash flows. Question 3 asks which statement about the relationship between dividends paid and retained earnings is correct. Question 4 asks which statement could explain an increase in cash despite a negative net cash flow from operations. Question 5 provides financial information for a company and asks how much net income exceeded free cash flow.
This document contains 5 multiple choice questions about topics in international finance including:
1) Interest rate parity between Japan and the US for 90-day and 180-day securities.
2) Calculating the forward premium/discount rate between the Israeli shekel and US dollar.
3) Calculating the savings from hedging an exchange rate exposure using a forward contract.
4) Applying purchasing power parity to convert between US dollars and Swiss francs.
5) Calculating the net present value of a foreign investment project taking into account exchange rate risk, political risk, and cash flow repatriation restrictions.
1. The document provides the answers and explanations for 5 multiple choice questions about financial ratios and capital structure.
2. Key points covered include the impact of changes in debt ratio, DSO, and interest expenses on profit margin, ROE, ROA, and other ratios.
3. The correct answers are identified and rationales are given for why the other answer choices are incorrect based on the calculations and impacts of changes in the relevant variables.
The document contains a homework assignment with 5 multiple choice questions regarding financial concepts such as loan amortization, interest rates, present and future value, and calculating savings needed for college tuition. Key details include how interest rates and time periods impact loan payments, the effective annual rate difference between two loan offers, using the future value and present value formulas to calculate savings amounts, and determining the annual savings needed to cover increasing college costs.
This document contains a chapter on homework with 5 multiple choice questions about capital structure and optimal capital structure. Each question has a single correct answer that is identified. The questions cover topics such as the definition of optimal capital structure, how capital structure relates to weighted average cost of capital and stock price, the relationship between operating leverage and fixed costs, and differences in capital structure between industries and firms.
This document contains a chapter on homework that discusses dividend policies and stock repurchases. It provides 5 multiple choice questions with correct answers on these topics:
1. The clientele effect suggests that companies should follow a stable dividend policy.
2. Stock repurchases can be used by a firm that wants to increase its debt ratio.
3. If a firm’s stock price is quite high, it can declare a stock split to bring the price down, and if the price is low, it can declare a reverse split to bring the price up.
4. If a firm follows the residual dividend policy, a sudden increase in profitable projects is likely to reduce its dividend payout.
By 1st December 2015, BCBS-IOSCO rules mean that all eligible financial and non-financial counterparties must be able to exchange bilateral Variation Margin (VM) and Initial Margin (IM) with their OTC derivatives counterparties. The consequences of this extend far beyond methodology, requiring a re-evaluation of the whole end to end workflow.
The document provides summaries of regulatory news from February 2019 across multiple jurisdictions and topics:
1) It addresses upcoming issues with implementing aspects of EMIR Refit and discusses reports from ESAs on regulatory sandboxes and innovation hubs. Updated bank risk dashboards show improved capital ratios but weak profitability.
2) New standards for market risk are announced with a simplified approach for smaller banks. EBA and ESMA reports address crypto-asset regulations and need for an EU-wide approach. Another report finds investment costs significantly reduce returns.
3) Draft delegated regulations on sustainable finance and sector views from FCA are published. Guidance is provided on exposures associated with high risk and on ESG disclosure. Reviews
An audit of a bank is different than other audits due to banks dealing in money as raw material and product. Banks must also comply with regulatory requirements. Major areas of a branch audit include loans, deposits, and banking operations. Loans are the largest asset and greatest risk exposure so internal controls are important. Common types of loans include overdrafts, cash finance, term loans, and export financing. Audit procedures involve verifying loan amounts, terms, and classifications.
Strategic analysis of first bank of nigeria plcTimi Oke
First Bank of Nigeria was established in 1894 and has since grown to become the largest bank in Nigeria. It has a vision of being the clear leader and bank of first choice in Nigeria. However, the banking sector in Nigeria is highly competitive with 24 major banks and low switching costs for customers. While First Bank has a strong brand and network, some competitors have developed better banking services and have also expanded across sub-Saharan Africa, giving them access to more opportunities beyond Nigeria. To maintain its leadership position, First Bank will need to continue innovating and expanding its reach beyond Nigeria.
This document provides training on regulatory compliance for tellers at Devon Bank. It begins by explaining that banks must comply with federal regulations set by agencies like the FDIC. It then details specific regulations that tellers must adhere to, including the Bank Secrecy Act, Patriot Act, and regulations around accessibility, privacy, security, and prohibited discrimination. The training emphasizes the importance of compliance and knowing applicable laws and policies to avoid penalties and protect customers. It concludes by having trainees answer practice questions to test their understanding.
IFRS 17 will represent a significant change to insurance accounting, requiring insurers to revamp financial reporting practices and financial statements.
RBC standard incorporates consistent valuation principles for assets and liabilities, a definition of qualifying capital resources and a risk-based capital requirement.
Do they compare?
This multiple choice question document tests understanding of current liabilities and contingencies. It includes questions about the definition and classification of current liabilities, contingencies, and specific current liability accounts such as accounts payable, notes payable, unearned revenue, and payroll liabilities. It also addresses the accounting treatment for compensated absences, contingencies, and the disclosure of short-term debt refinancing arrangements.
High regulatory costs for small and mid sized banksHEXANIKA
Anecdotal evidence from bankers suggests that the cost of complying usually increases with new rules and regulations when large statutory changes are made to financial laws and rules of any country or region[1]. This burden increases significantly when such changes are made especially after a financial crisis. New regulations stemming from the financial crisis has cost the six largest U.S. banks $70.2 billion as of the end of last year[2]. Between the end of 2007 and the end of 2015, regulatory fines rose by more than 100% – or $35.5 billion- according to data from policy-analysis firm Federal Financial Analytics Inc. As per Federal Financial Analytics, the reporting costs come from a mix of requirements that are specific to these banks, e.g. particular capital surcharges that apply to banks with assets over $50 billion but impose the largest cost on the six biggest banks due to their size or risk
This document summarizes recent tax developments from November 20, 2013. It discusses the federal tax legislative updates including Notice 2013-35 on bad debt regulations. It covers charge offs and issues the IRS has with agreeing that GAAP and tax definitions of worthlessness match. It outlines the two conclusive presumptions for charge offs. It also summarizes recent changes to the treatment of holding period costs for OREO according to a Generic Legal Advice Memorandum. Finally, it outlines seven major changes to the Pennsylvania Bank Shares Tax that take effect in 2014, including eliminating the moving average for equity capital and lowering the tax rate.
One of the next major challenges for insurance companies is the migration to IFRS 17, the stakeholders are
to understand the global goals of the standard. This paper is drafted in order to get a global understanding
of the standard and a high level summary of its liability measurement methodology.
Auditing in the CBS Environment was never this easy. Anand Jangid gives an insight to the Indian Chartered Accountants regarding the correct approach and methodological concepts that is to be remembered while auditing any CBS Environment.
This document provides an overview of different types of bank audits conducted in India, including statutory audit, concurrent audit, and RBI audit. It describes the objectives and key areas covered by each type of audit. The statutory audit verifies balance sheet classifications and ensures proper income recognition. Concurrent audit checks daily transactions to fill gaps between statutory audits. RBI audit assesses the bank's financial position, policies/procedures, and ability to repay depositors. The document also lists principal enactments governing bank audits and outlines the stages of an auditing process.
- Everi provides games and payments solutions for the gaming industry and generated $944.6 million in revenue over the last 12 months.
- Their games segment provides gaming machines, content, and systems to casinos, while their payments segment offers cash access and compliance services.
- Recently, Everi has extended several large contracts, expanded into new markets, and launched new licensed game content, driving continued revenue growth.
- They also recently refinanced their debt to reduce interest costs and extended debt maturities.
This document defines various types of banks such as commercial banks, regional rural banks, and development banks. It discusses their basic functions of accepting deposits and lending money. It also outlines the key regulations for bank financial statements and auditing requirements as outlined in the Banking Regulation Act of 1949. Different provisions are applicable for auditing different banks. Non-performing assets are defined as loans that have been classified as substandard, doubtful, or loss based on RBI guidelines. Asset classification and provisioning requirements are also discussed.
This document contains 5 multiple choice questions about financial concepts related to managing working capital, including cash conversion cycles, accounts receivable and payable, and capital structure. Question 1 asks which statement is correct about the working capital financing policy of a company called Swim Suits Unlimited based on its peak and off-peak balance sheet data. Question 2 asks which statement is correct about managing accounts receivable. Question 3 asks about the likely total long-term debt and equity capital for a no-growth firm following a moderate working capital financing policy. Question 4 asks about calculating the cash conversion cycle for a growing firm based on inventory, sales, cost of goods sold, accounts receivable, and accounts payable information. Question 5 asks about the
This document contains 5 multiple choice questions regarding financial statements and ratios. Question 1 asks which statement about a profitable firm's stock price is typically correct. Question 2 asks which statement correctly describes what is shown on the statement of cash flows. Question 3 asks which statement about the relationship between dividends paid and retained earnings is correct. Question 4 asks which statement could explain an increase in cash despite a negative net cash flow from operations. Question 5 provides financial information for a company and asks how much net income exceeded free cash flow.
This document contains 5 multiple choice questions about topics in international finance including:
1) Interest rate parity between Japan and the US for 90-day and 180-day securities.
2) Calculating the forward premium/discount rate between the Israeli shekel and US dollar.
3) Calculating the savings from hedging an exchange rate exposure using a forward contract.
4) Applying purchasing power parity to convert between US dollars and Swiss francs.
5) Calculating the net present value of a foreign investment project taking into account exchange rate risk, political risk, and cash flow repatriation restrictions.
1. The document provides the answers and explanations for 5 multiple choice questions about financial ratios and capital structure.
2. Key points covered include the impact of changes in debt ratio, DSO, and interest expenses on profit margin, ROE, ROA, and other ratios.
3. The correct answers are identified and rationales are given for why the other answer choices are incorrect based on the calculations and impacts of changes in the relevant variables.
The document contains a homework assignment with 5 multiple choice questions regarding financial concepts such as loan amortization, interest rates, present and future value, and calculating savings needed for college tuition. Key details include how interest rates and time periods impact loan payments, the effective annual rate difference between two loan offers, using the future value and present value formulas to calculate savings amounts, and determining the annual savings needed to cover increasing college costs.
This document contains a chapter on homework with 5 multiple choice questions about capital structure and optimal capital structure. Each question has a single correct answer that is identified. The questions cover topics such as the definition of optimal capital structure, how capital structure relates to weighted average cost of capital and stock price, the relationship between operating leverage and fixed costs, and differences in capital structure between industries and firms.
This document contains a chapter on homework that discusses dividend policies and stock repurchases. It provides 5 multiple choice questions with correct answers on these topics:
1. The clientele effect suggests that companies should follow a stable dividend policy.
2. Stock repurchases can be used by a firm that wants to increase its debt ratio.
3. If a firm’s stock price is quite high, it can declare a stock split to bring the price down, and if the price is low, it can declare a reverse split to bring the price up.
4. If a firm follows the residual dividend policy, a sudden increase in profitable projects is likely to reduce its dividend payout.
The document discusses completing the audit process. It includes concept check questions about identifying contingent liabilities, reviewing legal expenses, and identifying subsequent events. It also discusses management and auditor responsibilities regarding the going concern assumption. Key audit procedures mentioned include examining legal expenses, reviewing subsequent internal statements and board minutes, and assessing whether sufficient evidence was collected based on identified risks. The purpose of the engagement quality review and items that must be communicated to the audit committee are also summarized.
Question 1 1. The American Institute of Certified Public Account.docxmakdul
Question 1
1. The American Institute of Certified Public Accountants (AICPA), the Public Company Accounting Oversight Board (PCAOB), and the International Auditing and Assurance Standards Board (IAASB) have a common goal to:
Verify that the financial statements are free from material errors.
Verify that the financial statements are free from all errors.
Provide financial information to disinterested third parties.
Provide assurance to the public that audits are conducted in a professional manner.
5 points
Question 2
1. How many countries rely on the standards issued by the International Auditing and Assurance Standards Board?
25
Over 100
Only the European countries.
The twelve countries in North America.
5 points
Question 3
1. Which phase of the audit formulation process contains management's assertions of rights and obligations for their manufacturing facilities?
Phase I
Phase II
Phase III
Phase V
5 points
Question 4
1. All of the following requirements became mandatory when Congress passed the Sarbanes-Oxley Act of 2002, except:
Companies are required to establish an independent audit committee.
Prohibition on consulting work that auditors can perform for their audit clients.
Mandatory rotation every five years of the partner in charge of the audit engagement.
Creation of the Committee of Sponsoring Organizations (COSO) to oversee companies who do business on the New York Stock exchange (NYSE).
5 points
Question 5
1. The following individual is responsible for overseeing the day-to-day activities on a specific audit:
Partner
Senior
Manager
Supervisor
5 points
Question 6
1. The second principle of performance developed by the AICPA requires the auditor to do all of the following during an audit except:
Obtain absolute assurance as to whether the financial statements are free from material misstatements.
Determine materiality levels.
Identify risks of material misstatement.
Implement appropriate audit responses to assessed risks.
5 points
Question 7
1. The board of directors' primary objective for the shareholders is to:
Compile financial statements for submission to the Securities and Exchange Commission (SEC)
Supervise the activities of the internal auditors.
Build long-term sustainable growth in shareholder value.
Evaluate potential external auditing companies to select for the annual audit.
5 points
Question 8
1. One of the most significant provisions of the Sarbanes/Oxley Act of 2002 was:
The mandatory requirement to compile financial statements in accordance with the standards provided by the Public Companies Accounting Oversight Board (PCAOB).
Establishment of the American Institute of Certified Public Accountants (AICPA) and their Code of Conduct.
Specifies the education and experience requirements for all members on the board of directors.
Requires the CEO and CFO to certify their company's financial statements.
5 points
Question 9
1. Which of the follow ...
Benefits-of-Financial-Technology-for-Banks_RMA Jan 2017Max Zahner
This document summarizes how community banks can use technology to successfully compete in commercial and industrial lending. It discusses that C&I lending can provide higher returns than other types of lending but is difficult for banks to do well due to the complex underwriting and loan administration processes required. It then describes how adopting new technology can streamline these processes, reducing the time and costs to underwrite loans and conduct loan reviews. This allows community banks to profitably lend to smaller businesses and increase their return on equity through expanding their C&I lending business.
CHAPTER 1 This list below indicated various audits, attestation,.docxzebadiahsummers
CHAPTER 1: This list below indicated various audits, attestation, and other engagements involving auditors.
1. A report on the effectiveness of internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act.
2. An auditor’s report on whether the financial statements are fairly presented in accordance with International Financial Reporting Standards.
3. An engagement to help a company structure a merger transaction to minimize the taxes of the combined entities.
4. A report stating whether the company has complied with restrictive covenants related to officer compensation and payment of dividends contained in a bank loan agreement.
5. A report on the effectiveness of internal controls at a company that provides payroll processing for other companies.
6. An examination report stating whether a company’s statement of greenhouse gas emissions is presented in conformity with standards issued by the World Business Council for Sustainable Development and the World Resources Institute.
7. Evaluating the voting process and certifying the outcome for Rolling Stones Magazine’s “Greatest Singer of All Time” poll.
8. A report indicating whether a governmental entity has compiled with certain government regulations.
9. A review report that provides limited assurance about whether financial statements are fairly stated in accordance with U.S. GAAP.
10. A report about management’s assertion on the effectiveness of controls over the availability, reliability, integrity, and maintainability of its accounting information system.
11. An evaluation of the effectiveness of key measures used to assess an entity’s success in achieving specific targets linked to an entity’s strategic plan and vision.
Required
a. Explain the relationships among audit services, attestation services, and other assurance and no assurance services provided by CPA’s.
b. For each of the services listed above, indicate the type of service from the list that follows.
(1) An audit of historical financial statements.
(2) An attestation service other than an audit service.
(3) An assurance or no assurance service that is not an attestation service.
1-21. Dave Czarnecki is the managing partner of Czarnecki and Hogan, a medium-sized local CPA firm located outside of Chicago. Over lunch, he is surprised when his friend James Foley asks, him, “Doesn’t it bother you that your clients don’t look forward to seeing their auditors each year?” Dave responds, “Well auditing is only one of several services we provide. Most of our work for clients does not involve financial statement audits, and our audit clients seem to like interacting with us.”
a. Identify ways in which a financial statement audit adds value for clients.
b. List other services other than audits that Czarnecki and Hogan likely provides.
c. Assume Czarnecki and Hogan has hired you as a consultant to identify ways in which they can expand their practice. Identify at least one additional service that .
The document is a knowledge level exam paper from the Institute of Chartered Accountants of Bangladesh. It contains questions on assurance, internal control, internal and external audit. The paper covers key concepts in these areas like the two types of assurance engagements, objectives of internal control, components of internal control like control environment and risk assessment process, roles of internal and external audit functions and key differences between them. It provides suggested answers to questions testing understanding of these fundamental assurance, internal control and audit concepts.
An Examination of the Mechanism and Legal Regulation Assuring Audit IndependenceRenzo Del Giudice
Please cite to the respective author of this journal article: Chou, T.K. (2012). An Examination of the Mechanism and Legal Regulation Assuring Audit Independence. UC David Business Law Journal, 12: 225-242.
This document does not contain a summary as it is a collection of fragmented text and does not convey complete ideas or information. The document includes discussions of auditor independence, contingent fees, threats to objectivity, and other audit-related topics but does not integrate these ideas into coherent paragraphs or provide an overall summary.
1. The document contains a quiz on auditing governments and not-for-profit organizations from ACC 410 Week 10. It includes true/false questions, multiple choice questions, and essay questions on topics like the Single Audit Act, Government Auditing Standards, and compliance requirements for federal award recipients.
2. Key standards and laws discussed include the Yellow Book, Government Auditing Standards, Single Audit Act, and Sarbanes-Oxley Act. The quiz questions cover requirements for single audits, auditor qualifications, and assessing compliance in performance audits.
3. Performance audits conducted on government programs focus on evaluating efficiency, effectiveness, and if the program is achieving desired results. The document is a practice quiz to
1. The document contains a quiz on auditing governments and not-for-profit organizations from ACC 410 Week 10. It includes true/false questions, multiple choice, and essay questions on topics like the Single Audit Act, Government Auditing Standards, and compliance requirements for federal award recipients.
2. Key standards and laws discussed include the Yellow Book, Government Auditing Standards, Single Audit Act, and Sarbanes-Oxley Act. The quiz questions cover requirements for single audits, auditor qualifications, and assessing compliance in performance audits.
3. The document is a practice quiz to test understanding of auditing standards and requirements for governments and not-for-profits receiving federal financial assistance.
1. The document contains a quiz on auditing governments and not-for-profit organizations from ACC 410 Week 10. It includes true/false questions, multiple choice questions, and essay questions on topics like the Single Audit Act, Government Auditing Standards, and compliance requirements for federal award recipients.
2. Key standards and laws discussed include the Yellow Book, Government Auditing Standards, Single Audit Act, and Sarbanes-Oxley Act. The quiz questions cover requirements for single audits, auditor qualifications, and assessing compliance in performance audits.
3. The document is a practice quiz to test understanding of auditing standards and requirements for governments and not-for-profits receiving federal financial assistance.
Construction Futures Wales - Project Bank AccountsRae Davies
1. The document discusses Project Bank Accounts (PBAs), which are bank accounts set up to ensure timely payment to contractors and subcontractors on construction projects.
2. The Welsh Government has implemented a policy requiring PBAs for capital projects over £2 million to address issues like contractors waiting over 100 days to be paid.
3. A cost-benefit analysis found that the benefits of PBAs, like improved cash flow, outweigh the costs for all parties involved in construction projects.
Construction Futures Wales Project Bank Accounts - November 2018Rae Davies
1) The Welsh Government is implementing a Project Bank Account (PBA) policy to address poor payment practices in public sector supply chains.
2) Under the PBA policy, PBAs will be a condition of funding for capital projects receiving Investment Panel approval from January 2019 onwards.
3) A PBA is a bank account set up under a trust deed that ensures prompt payments to contractors and subcontractors down the supply chain, preventing payment delays.
The document contains quiz questions and solutions related to Chapter 7 on auditing internal controls. It addresses topics like the responsibilities of management and auditors in assessing internal controls over financial reporting, the objectives of internal control, and an auditor's responsibilities to consider fraud and errors. Key objectives of auditing internal controls are to form an opinion on their effectiveness in preventing material misstatements and to evaluate controls over financial statement disclosures. Auditors must test internal controls rather than rely solely on the work of others.
Annual Report to The Director of Finance by the Purchasing Managerbutest
This document provides a summary of procurement activities and performance for 2009. Key points include:
- Customer and supplier satisfaction surveys showed generally positive feedback on the procurement process.
- Significant contracts were awarded for items like telecoms, data cabling, waste management, and construction projects. Further competitions helped reduce costs.
- Total purchasing savings for the year were £2.4 million, including savings from construction market conditions.
- Spend through purchasing cards increased procurement efficiencies. Engagement with small and medium enterprises increased through supplier classification and information events.
Five college seniors discuss career plans in auditing. The first plans to be an IRS agent focused on taxes. The second wants to work for a CPA firm for experience in auditing and related fields. The third chose a career in internal auditing for exposure to different parts of large companies. The fourth aims to be a GAO auditor for experience in computer risk assessment. The fifth wants to be a certified fraud examiner but is unsure where to begin.
This document contains 5 multiple choice questions regarding corporate valuation and discounted cash flow analysis. The questions calculate the value of company operations based on projected free cash flows, growth rates, and weighted average cost of capital. Correct answers are provided for each question.
This document contains a chapter about forecasting financial statements and additional funds needed (AFN). It includes 5 multiple choice questions about key concepts related to forecasting sales, determining asset and liability ratios, calculating sustainable growth rates, and estimating the impact of dividend payout ratios on AFN. The questions assess understanding of using ratios, accounting for excess capacity, and applying the AFN equation to forecast funding requirements.
This summarizes a homework assignment involving capital budgeting concepts and calculations:
1. The correct statement is that the NPV method, unlike the IRR method, automatically deals correctly with externalities even if they are not specifically identified.
2. Project X has more market risk than Project Y based on their cash flows being more or less correlated with existing projects.
3. If equipment is expected to be sold for more than its book value at the end of a project's life, this will result in a profit and an end-of-project cash flow greater than if sold at book value, other things held constant.
4. The project's NPV is $19,325 based on the
1. The net present value (NPV) method is generally regarded as the best single method for evaluating capital budgeting projects according to academics.
2. Project A has cash flows that occur earlier in the project life compared to Project B, based on their NPV profiles.
3. If a firm relies solely on the payback method with a 4-year cutoff, it will reject too many long-term projects when the economy is weak.
This document contains 5 multiple choice questions about capital budgeting and the weighted average cost of capital (WACC). Question 1 asks which action would reduce a company's need to issue new common stock given it needs to issue stock to fund its capital budget. Question 2 asks which project a company should accept given different WACC rates for different risk levels. Question 3 asks which statement about the cost of preferred stock is correct. Question 4 asks which statement about assigning the same cost of capital to all projects is correct. Question 5 asks which statement is correct about a company assigning the same WACC to divisions with different risk levels.
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This document contains 5 multiple choice questions from a homework assignment on corporate finance concepts. The key points covered include:
1) The constant growth model and its assumptions.
2) Calculating stock prices and dividend yields given growth rates and required rates of return.
3) Characteristics and advantages/disadvantages of preferred stock versus common stock.
4) Calculating stock price using the dividend discount model given growth rates, dividends, betas and risk-free rates.
5) Using the dividend discount model and goal seek in Excel to calculate the required rate of return that sets the estimated stock price equal to the actual price.
This document contains 5 multiple choice questions about portfolio risk and return concepts from capital asset pricing model (CAPM) theory. Question 1 states that the least risky portfolio according to CAPM would invest equal amounts in all stocks. Question 2 says that while Jane's portfolio of 20 stocks has less diversifiable risk than Dick's of 2 stocks, their required returns are the same since they have the same beta. Question 3 notes that a portfolio with a 50-50 allocation of two uncorrelated stocks with different betas will have a beta equal to the weighted average and a required return equal to the market risk premium. Question 4 indicates that the security market line relates a stock's required return to its market risk. Question 5 says that if interest
The document contains 5 multiple choice questions about bond valuation. Question 1 asks which statement is correct about the prices of 3 bonds with the same YTM but different coupon rates if interest rates remain constant. Question 2 asks which statement is correct about the price difference between callable and non-callable bonds of the same maturity and coupon rate. Question 3 asks which statement is correct regarding the relationship between current yield, yield to maturity, and premium/discount bonds. Questions 4 and 5 ask which statement is correct about the impact of different capital structures on bond yields and interest expenses.
1. Homework 1 (Chapter 1 & 2)
Chapter 1
Problem 1-17 (a-e)
a. The interest rate for the loan that requires a review report is lower than the loan that did not
require a review because of lower information risk.
The interest rate for the loan that requires an audit report is lower than the interest rate for the
other two of loans because a review reportprovides moderate assurance to financial statement
users, which lowers information risk, whereas an audit reportprovides further assurance and
lower information risk. As a result of reduced information risk, the interest rate is lowest for
theloan with the audit report.
b. Vial-tek’s annual costs under each loan agreement, including interest and costs for CPA firm’s
services are following:
LENDER CPA COST OF CPA ANNUAL ANNUAL
SERVICE SERVICES INTEREST LOAN COST
Existing loan None 0 $ 332,500 $ 332,500
First National Bank Review $ 20,000 $ 297,500 $ 317,500
City First Bank Audit $ 45,000 $ 262,500 $ 307,500
Given these circumstances, Vial-tek should select the loan from City First Bank that requires an
annual audit. In this situation, the additional cost of the audit is less than the reduction in interest
due to lower information risk.
c. Vial-tek should select the loan from First National Bank due to the higher cost of the audit and
the reduced interest rate for the loan from First National Bank. The following is the calculation
of total costs for each loan:
LENDER CPA COST OF CPA ANNUAL ANNUAL
SERVICE SERVICES INTEREST LOAN COST
Existing loan None 0 $ 332,500 $ 332,500
First National Bank Review $ 20,000 $ 280,000 $ 300,000
City First Bank Audit $ 50,000 $ 262,500 $ 312,500
d. Vial-tek may desire to have an audit because of the many other positive benefits that an audit
provides. The audit will provide Vial-tek’s management with assurance about annual financial
information used for decision-making purpose, includingdetects errors or fraud, and provides
management with information about the effectiveness of controls. In addition, the audit may
result in recommendations to management that will improve efficiency or effectiveness.
2. e. The auditor must have a thorough understanding of the client and its environment, including
the client’s e-commerce technologies, industry, regulatory and operating environment, suppliers,
customers, creditors, and business strategies and processes. This thorough analysis helps the
auditor identify risks associated with the client’s strategies that may affect whether the financial
statements are fairly stated. This strategic knowledge of the client’s business often helps the
auditor identify ways to help the client improve business operations, thereby providing added
value to the audit function.
Problem 1-19 (a-b)
a.The following parts of the definition of auditing are related to the narrative:
(1) Information
Virms is being asked to issue a report about qualitative and quantitative information for trucks.
The trucks are therefore the information with which the auditor is concerned.
(2) Established criteria
There are four established criteria which must be evaluated and reported by Virms:
Existence of the trucks on the night of June 30, 2009
Ownership of each truck by Regional Delivery Service
Physical condition of each truck
Fair market value of each truck.
(3) Accumulating and evaluating evidence
Susan Virms will accumulate and evaluate four types of evidence:
Count the trucks to determine their existence.
Use registrations documents held by Oatley for comparison to the serial number on each
truck to determine ownership.
Examine the trucks to determine each truck's physical condition.
Examine the blue book to determine the fair market value of each truck.
(4) Competent, independent person
Susan Virms, CPA, appears qualified, as a competent, independent person. She is a CPA, and
she spends most of her time auditing used automobile and truck dealerships and has extensive
specialized knowledge about used trucks that is consistent with the nature of the engagement.
3. (5) Reporting results
The report results are including:
Which of the 35 trucks are parked in Regional's parking lot the night of June 30.
Whether all of the trucks are owned by Regional Delivery Service.
The condition of each truck, using established guidelines.
Fair market value of each truck using the current blue book for trucks.
b. There are 2 parts of the audit that will be difficult for Virms:
(1) Evaluating the condition, using the guidelines of poor, good, and excellent. It is highly
subjective to do so. If she uses a different criterion than the "blue book," the fair market
value will not be meaningful. Her experience will be essential in using this guideline.
(2) Determining the fair market value, unless it is clearly defined in the blue book for each
condition.
Problem 1-22 (a-b)
a.The conglomerate should either engage the management advisory services division of a CPA
firm or its own internal auditors to conduct the operational audit.
b. The auditors will encounter problems in establishing criteria for evaluating the actual
quantitative events and in setting the scope to include all operations in which significant
inefficiencies might exist. In writing the report, the auditors must choose proper wording to state
that no financial audit was performed, that the procedures were limited in scope and that the
results reported do not necessarily include all the inefficiencies that might exist.
4. Chapter 2
Problem 2-18 (a-b)
a. The arguments against the Act can be summarized as four arguments:
1. Costs of complying with the Act are excessively high, especially the requirement to
report on internal control over financial reporting, and will discourage companies from
becoming public companies.
2. Relative cost for local audit firms is excessively high.
3. Additional oversight is not needed because sufficient quality controls have already been
implemented by most audit firms.
4. Three other things already provide assurance of adequate quality: a competitive economic
environment, legal liability, and auditing standards.
To support these comments, it can be argued that the profession has generally functioned well
with relatively little controversy and criticism.
The arguments against these comments are followings:
o Reporting on the effectiveness of internal control over financial reporting will provide
benefits in improved controls, resulting in higher quality financial reporting and reduced
losses from fraud.
o The increased confidence in financial reporting will increase access to capital and lower
the cost of capital by reducing information risk.
o Changes in the scope of CPA practices and other threats to audit quality required
government regulation.
o Regulation of public company audits will not affect most audit firms that do not have
public company audit clients.
b. There is no correct answer to this question. Different people reach different conclusions,
depending on the weights put on the various arguments. It needs time to effectively assess both
the costs and benefits of the Act.
Problem 2-20 (a-b)
a.Rossi and Montgomery's primary ethical consideration is their professional competence to
perform all of the audit work for filing with the SEC.
In addition, if Rossi and Montgomery have performed bookkeeping services or certain
consulting services for Mobile Home, they will not be independent under PCAOB and SEC
independence requirements. The firm must also be a registered firm with the PCAOB.
5. b. The filing with the SEC, in addition to normal audited financial statements, will require
completion and registration with the SEC of Form S-1 which includes an audited summary of
operations for the last five fiscal years as well as many additional schedules and descriptions of
the business.
Each quarter subsequent to the filing, Form 10-Q must be filed; and within 90 days of
the end of each fiscal year Form 10-K must be filed with the SEC.
In addition, Form 8-K must be filed whenever significant events have occurred which
are of interest to public investors. These forms must be filed in conformity with Regulation S-X,
which requires considerable disclosures in addition to those normally required in audited
financial statements.
Problem 2-21
Brief Description of GAAS Holmes’ Actions Resulting in Failure to Comply w/ GAAS
General Standards
1. The auditor must have adequate technical 1. It was inappropriate for Holmes to hire the two students to
training and proficiency to perform the audit. conduct the audit. The audit must be conducted by persons
with proper education and experience in the field of auditing.
Although a junior assistant has not completed his formal
education, he may help in the conduct of the audit as long as
there is proper supervision and review.
2. The auditor must maintain independence in 2. To satisfy the second general standard, Holmes must be
mental attitude in all matters relating to the without bias with respect to the client under audit. Holmes
audit. has an obligation for fairness to the owners, management, and
creditors who may rely on the report. Because of the financial
interest in whether the bank loan is granted to Ray, Holmes is
independent in neither fact nor appearance with respect to the
assignment undertaken.
3. The auditor must exercise due professional 3. This standard requires Holmes to perform the audit with
care in the performance of the audit and the due care, which imposes on Holmes and everyone in Holmes'
preparation of the report. organization a responsibility to observe the standards of field
work and reporting. Exercise of due care requires critical
review at every level of supervision of the work done and the
judgments exercised by those assisting in the audit. Holmes
did not review the work or the judgments of the assistants and
clearly failed to adhere to this
6. Brief Description of GAAS Holmes’ Actions Resulting in Failure to Comply w/ GAAS
Standards of Field Work
1. The auditor must adequately plan the work 1. This standard recognizes that early appointment of the
and must properly supervise any assistants. auditor has advantages for the auditor and the client. Holmes
accepted the engagement without considering the availability
of competent staff. In addition, Holmes failed to supervise the
assistants. The work performed was not adequately planned.
2. The auditor must obtain a sufficient 2. Holmes did not obtain an understanding of the entity or its
understanding of the entity and its internal control, nor did the assistants obtain such an
environment, including its internal control, to understanding. There appears to have been no audit at all.
assess the risk of material misstatement of the The work performed was more an accounting service than it
financial statements whether due to error or was an auditing service.
fraud, and to design the nature, timing, and
extent of further audit procedures.
3. The auditor must obtain sufficient 3. Holmes acquired no evidence that would support the
appropriate audit evidence by performing financial statements. Holmes merely checked the
audit procedures to afford a reasonable basis mathematical accuracy of the records and summarized the
for an opinion regarding the financial accounts. Standard audit procedures and techniques were not
statements under audit. performed.
Standards of Reporting
1. The auditor must state in the auditor’s 1. Holmes' report made no reference to GAAP. Because
report whether the financial statements are Holmes did not conduct a proper audit, the report should state
presented in accordance with generally that no opinion can be expressed as to the fair presentation of
accepted accounting principles (GAAP). the financial statements in accordance with generally
accepted accounting principles.
2. The auditor must identify in the auditor’s 2. Holmes' improper audit would not enable him to determine
report those circumstances in which such whether GAAP were consistently applied. Holmes' report
principles have not been consistently observed should make no reference to the consistent application of
in the current period in relation to the accounting principles.
preceding period.
3. When the auditor determines that 3. Management is primarily responsible for adequate
informative disclosures are not reasonably disclosures in the financial statements, but when the
adequate, the auditor must so state in the statements do not contain adequate disclosures the auditor
auditor’s report. should make such disclosures in the auditor's report. In this
case both the statements and the auditor's report lack
adequate disclosures.
7. Brief Description of GAAS Holmes’ Actions Resulting in Failure to Comply w/ GAAS
4. The auditor must either express an opinion 4. Although the Holmes report contains an expression of
regarding the financial statements, taken as a opinion, such opinion is not based on the results of a proper
whole, or state that an opinion cannot be audit. Holmes should disclaim an opinion because he failed
expressed, in the auditor’s report. When the to conduct an audit in accordance with generally accepted
auditor cannot express an overall opinion, the auditing standards.
auditor should state the reasons therefor in the
auditor’s report. In all cases where an auditor's
name is associated with financial statements,
the auditor should clearly indicate the
character of the auditor's work, if any, and the
degree of responsibility the auditor is taking,
in the auditor’s report.
Problem 2-22 (a-f)
a. An audit of a German private company w/ no public debt.
The engagement is like to be conducted under international auditing standards.
b. An audit of a U.S. public company.
The engagement is like to be conducted under PCAOB auditing standards.
c. An audit of a United Kingdom public company that is listed in the U.S. and whose financial
statements will be filed w/ the SEC.
The engagement is like to be conducted under PCAOB auditing standards(reporting in
the U.K. will be under international auditing standards).
d. An audit of a U.S. private company to be used for a loan from a publicly-traded bank.
The engagement is like to be conducted under generally accepted auditing standards.
e. An audit of a U.S. public company that is a subsidiary of a Japanese company that will be used
for reporting by the parent company in Japan.
The engagement is like to be conducted under international auditing standards.
f. An audit of a U.S. private company that has publicly-traded debt.
The engagement is like to be conducted under PCAOB auditing standards(due to the
publicly-traded debt).