* In this case‚ we have to look at the Civil Liability Act 2002 (NSW) to determine who was negligent and in specific‚ we use s 5B(1)‚ s 5B(2) and s 5R of the Civil Liability Act 2002 (NSW); s 5B(1) for the reasonable foreseeability test‚ s 5B(2) for determining if the standard of reasonable care has been breached and s 5R for contributory negligence. * Where both the parties seem to have been negligent‚ it is important to determine who is more at fault and for this purpose we need to use the
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incremental changes for each line item over the last three years. 3. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation‚ calculate the estimated effect of this misstatement on net income before taxes for 20X4. 4. Indicate whether you believe that the difference calculated in part (c) is material. Explain your answer. (50-100 words). Comparative income statement
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I. BACKGROUND – SECURITIES MARKETS AND REGULATION A. The Basics 1. Two types of securities transactions: a. Primary market transactions – issuer sells securities to marketplace b. Secondary market transaction – between two outside investors 2. How we protect consumers: a. Disclosure b. Process rule c. Bans d. Education e. Intermediaries ( profit-driven incentive to ensure quality 3. What is different
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Part I: Understanding Auditor Responsibilities Chapter 4 Professional Liability Learning Objectives: By studying this chapter‚ students should be able to: 1. Discuss the liability environment in which auditors operate‚ the factors that have led to litigation against auditors‚ increasingly including shareholder class actions‚ and the effects of lawsuits on audit firms. 2. Describe the causes of legal action against auditors and identify parties that may sue auditors. 3. Explain
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more susceptible to theft than an inventory of coal. 3. Confirmation of accounts receivable by an auditor fails to detect a material misstatement. 4. Disbursements have occurred without proper approval. 5. There is inadequate segregation of duties. 6. A necessary substantive audit procedure is omitted. 7. Notes receivable are susceptible to material misstatement‚ assuming there are no related internal controls. 8. Technological developments make a major product obsolete. 9. An auditor complies with
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assertion is not materially misstated when in fact such misstatement does exist. If auditors want to decrease DR‚ they had better collect more evidence and make sure the validity of evidence. Audit Risk: auditors may unknowingly fail to appropriately modify their opinion on financial statements that are materially misstated. If AR should be keep in low level‚ which means the other risks also should be low. Inherent Risk: The risk of material misstatement of a financial statement assertion‚ assuming there
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Lydia Lam – 10849469 – Tut1‚ 07 – 2:00 – 3:00pm A) Deegan explains that an agency relationship arises when the principal delegates the decision-making authority to an agent. An example of such a relationship is when the owner of a company delegates the decision-making authority to the manager. The costs of divergent behaviour that arises as a result of the agency relationship are referred to as agency costs. Furthermore‚ Watts and Zimmerman (1978) developed the theory of positive accounting which
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manslaughter where the perpetrator or the person doing the killing never meant to kill anyone‚ but because they did something dumb or legally referred to at criminally negligent or reckless. . This means that the perpetrator did not intend to kill anyone‚ but still killed the victim through behavior that was either criminally negligent or reckless. In order for what happened to be considered involuntary manslaughter‚ there are three things that have to be true. The first thing‚ which seems obvious‚
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What Is Negligent Death? Negligent death is when a person is killed due to the misconduct or negligence of another person. It is often referred to as wrongful death. The family members of the deceased person may opt to file a wrongful death claim. For example‚ if a parent lost a child in a car accident‚ then he or she may be able to file a lawsuit against the responsible party. There are several elements that must be present in a wrongful death case. Those elements include death of a person‚ negligence
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Nonroutine transactions. B. Estimation transactions. C. Susceptibility to theft. D. Expected effectiveness of controls. 13. The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does not exist in an account balance when‚ in fact‚ such misstatement does exist is referred to as A. Audit risk B. Inherent risk C. Control risk D. Detection risk 14. Evidential matter concerning proper segregation of duties ordinarily is best obtained by A. Preparation of
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