fraudulent financial statements so that investors can feel confident that what they see is really what they get [when looking at public company’s financial statements]. 2. February 15‚ 1994 – After the phone call with George Mallon‚ president and CEO of Mallon Resources‚ Duane Knight did not immediately inform his superiors of the conversation or potential job offer. Here he is violating Section 101-2.04 of the AICPA because he waited to report this interaction. “When a member of the attest engagement
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1. An auditor’s independence is defined as an unbiased‚ free of conflict of interest and impartial reviewing of the results of a company’s financial activities and issuing an opinion on the financial statements. The auditor must remain independent in mind such that he or she may express an opinion on financial statements without being affected by any sort of influences that may distort his or her professional judgement. Moreover‚ the auditor must remain independent in appearance such that his integrity
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Concerned‚ In response to your questions about the rights of public health officials‚ I find that there are a great many details to consider. As I am sure you are aware‚ the United States Supreme Court decision in 1905 on the Jacobson v. Massachusetts case set a legal precedent in situations such as these. The ruling stated that the Board of Health had the right to require citizens to receive vaccinations in order to control a spreading smallpox epidemic . Legally‚ this supports the rights of you and
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Chapter 5 Case -- Stem Corporation (A)* On December 31‚ 2006‚ before the yearly financial statements were prepared‚ the controller of the Stem Corporation reviewed certain transactions that affected accounts receivable and the allowance for doubtful accounts. The controller first examined the December 31‚ 2005‚ balance sheet (Exhibit 1). A subsequent review of the year’s transactions applicable to accounts receivable revealed the items listed below: 1. Sales on account during 2006 amounted to $9
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American Barrick Resources Corporation Case a. Explain the value chain for gold mining firms (how can a mine create a competitive advantage relative to its rivals). What are the factors that may explain exceptional performance of ABX relative to the other gold mines? To create a competitive advantage‚ a mine has to properly manage its exposure to gold price fluctuations. This is not an easy thing to do since there are so many factors to consider: when‚ how much‚ and how to hedge the gold
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Case 10-5 Danle Corporation In November 2008‚ Danle Corporation，a public company engaging in the design‚ development‚ manufacture‚ and assembly of motors，was sued because of safety issue of parts it manufactured. Danle made no disclosure of the lawsuit in Form 10-K since it determined that the risk of potential loss was remote and no amount of potential damages could be reasonably estimated. In October 2009‚ Danle was served a second complaint for the same reason. Danle’s external counsel believed
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potential problems within the corporation? • The controller became aware of the potential problems with the accounts payable system because of the discussion made with the external auditors. • Each branch manager is given the authority to order materials and issue emergency purchase orders directly to the vendors. • Physical counts of raw materials are not performed since there is a cost-effective computerized perpetual inventory system. • COMPUTER RESOURCES: The host computer mainframe
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Mary Mallon is known as Typhoid Mary the most dangerous women in America. She thinks that she is a victim of how she is healthy and can’t have typhoid fever and to spread it too‚ but I think she a villain. Mary Mallon emigrated from Ireland as a teenager‚ she traveled by herself to start a new life in the New York‚ United States in 1883. Later on‚ she has found she was good at cooking‚ then she started working for rich families it was a pretty fair pay for her job. But that did not last long until
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Case Summary Digital Semiconductor was a business unit of Digital Equipment Corporation. John Gavin‚ the DS group controller‚ wanted the finance department to find ways to add value and better support the division because the DS business strategy had many changes over the past five years and the division was still operating at a loss. History: The semiconductor division which was a part of Digital Equipment Corporation expanded rapidly in the 1970s. Digital was financially very successful in 1988
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Mary Mallon‚ nicknamed Typhoid Mary after infecting many people with Salmonella Typhi. In her total life time‚ she directly killed 3-5 people. Mallon also infected 20-30 more people during her career. In 1907 alone‚ over 3000 people fell ill with Salmonella Typhi in New York City. Many believe Mary Mallon was the main cause linked to the Typhoid Epidemic. Mary Mallon was born on September 23‚ 1868 in Cookstown‚ Ireland‚ one of the poorest places to live in that time. According to Mallon‚ she
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