1. Should auditors insist that their clients accept all proposed audit adjustments‚ even those that have an “immaterial” effect on the given financial statements? Defend your answer. The auditors should not insist that their clients accept all proposed audit adjustments. The auditor’s main duty is to provide reasonable assurance to verify the accuracy and compliance of client’s financial statements‚ to ensure that it conveys data and information of events occurred within the accounting period
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CASE: MAKING NORWICH TOOLS LATHE INVESTMENT DECISIONS PAR T A: PAYBACK PERIOD years cash flows 0 1 2 3 4 5 (660‚000) 128‚000 182‚000 166‚000 168‚000 450‚000 PBPA LATHE A cumulative cash flows cash flows LATHE B cumulative cash flows 128‚000 310‚000 476‚000 644‚000 1‚094‚000 (360‚000) 88‚000 120‚000 96‚000 86‚000 207‚000 88‚000 208‚000 304‚000 390‚000 597‚000 4.04 PBPB 3.65 ACCEPTABILTY OF EACH PROJECT: Lathe A will be
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months. They would launch and run business for another six months until when they decide to either expand or not and continue to run business for six more months. At the end of 18 months‚ Bernard would definitely sell his interests. According to the case‚ Bernard’s value of original opportunity was $68.465K. Subtracted by the initial investment of $90K‚ the NPV was $21.535K. Thus‚ he planned to pass the opportunity. But his friends offered him alternatives which may generate positive outcomes to the
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Short Assignment 1 * What was the positioning challenge Apple faced? Competitors enter market * In 1981‚ IBM entered PC market used Microsoft’s DOS OS and microprocessor and will be Apple best rival for the start on 1981. Jobs forced out in 1985. * In 1985‚ Compaq and IBM do a research and development (R&D) and make move Apple into the mainstream by becoming low-cost producer and joint venture with IBM. This’s one of Apple failure moment and Apple Gross margin drop to 34%. *
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1. Is Eye Vision’s arrangement with Holland Hospital within the scope of ASC 985-605‚ Software: Revenue Recognition? In this case‚ the main content of the Eye Vision’s arrangement with Holland Hospital include embedded software medical equipment and an initial option to purchase a two-year separately priced maintenance agreement. In this case‚ because“Eye Vision has never sold‚ nor does it offer to sell‚ the Clear View Laser without the embedded software because the software is necessary to perform
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Introduction: BP has been operating in Russia since the early 1990s. In 1997‚ it purchased a 10 per cent stake in Sidanco‚ the Russia’s 4th largest oil company. The stake was subsequently increased to 25 per cent plus one share in 2002. In 2003‚ BP merged its interests in Russia with those of TNK to create TNK-BP‚ a hugely successful joint venture employing around 50‚000 people and operating in nearly all of Russia’s major hydrocarbon regions. Since its formation‚ TNK-BP went on to become Russia’s
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Case Study: British Telecom: Searching for a winning strategy Tuomo Summanen Michael Pollitt Judge Institute of Management November 2002 1. Introduction The development of the telecommunications market in the United Kingdom and the corporate strategy and development of the incumbent‚ British Telecom‚ represents an interesting object of analysis for several reasons. First‚ the UK telecommunications market was - along with the U.S. market - among the first telecommunications market that
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*Microsoft’s Financial Reporting Strategy 1. What are the factors that likely explain the difference between Microsoft’s market value of equity and its reported book value of equity? The most obvious reason for the difference between the market value of equity and the book value of equity is the inability to record certain intangible assets such as brand value‚ customer loyalty‚ and perhaps most importantly‚ human capital. These intangible assets are likely to provide tremendous earnings
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Answer 1. SWOT analysis of The Fashion Channel The Fashion Channel (TFC) is a 24*7 cable TV network which is exclusively dedicated to fashion. It was found in 1996 and since then it has been witnessing continuous upswing. According to an annual demographic survey‚ TFC is having approximately 110 million subscribers of cable & satellite television. But‚ due to increasing competition with other fashion channels‚ it is in the need for developing a modern and updated brand strategy. SWOT analysis
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Units Unit Cost Total Cost From the Beginning Inventory 1840.00 20.00 36800.00 From the first purchase 600.00 20.25 12150.00 From the second purchase 380.00 21.00 7980.00 2820.00 56930.00 From the Second purchase 420.00 21.00 8820.00 From the third purchase 400.00 21.25 8500.00 From the second purchase 200.00 21.50 4300.00 1020.00 21.20 21620.00 Units Unit Cost Total Cost From the Beginning Inventory 1020.00 21.20 21624.00 From the first purchase 700.00 21.50 15050.00 From the second
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