1. As the auditor‚ list the concerns you have may suggest fraud‚ is occurring in the company. 1. Conflicts of interest. The owner of the company which is Justin Bieber‚ frequently takes extended vacations with his family and rarely examines the books of his business. He always appoint any of the family members to monitor and take charge the position while he’s not around for business trip and outstation. 2. The participants of the governors are rarely active in managing the direction and strategy
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THE LIMITED LIABILITY COMPANY A popular form of business‚ especially with small businesses‚ is the hybrid form of business‚ the limited liability company (LLC) or a limited liability partnership (LLP)‚ which combine the best features of a partnership and a corporation. In 1988‚ the Internal Revenue Service (IRS) ruled that the LLC may be treated as a partnership for tax purposes‚ while retaining its limited liability for its owners. Since this ruling‚ every state has passed legislation permitting
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Ch8 Student: ___________________________________________________________________________ 1. Delta‚ Northwest‚ and United Airlines have all‚ at one time‚ filed for bankruptcy. True 2. In a classified balance sheet‚ we categorize all liabilities as current. True 3. False A line of credit is an informal agreement that permits a company to borrow up to a prearranged limit without having to follow formal loan procedures and paperwork. True 9. False We record interest expense in the period in
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Jessica Schmitt Auditing Chapter 9‚ problem 9-28 A. Since there are no specific materiality guidelines‚ it is the auditor’s professional judgment that must be used to determine the appropriate preliminary estimates of materiality. I used the guidelines listed on pg 251 in figure 9-2: Statement Percent Guideline Dollar Range (in thousands) Earnings from continuing operations before taxes 3-6 % $12‚500-$25‚100 (rounded) Current Assets 3-6 % $67‚600-$135‚200 (rounded) Current Liabilities 3-6 % $36‚500-$72
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Audit Risk Model Summary First: Let’s think about each of the components of the audit risk model. The auditor selects the overall audit risk they are will to accept‚ assesses inherent and control risk at the account (or account group) level‚ and calculates planned detection risk at the account (or account group) level. Audit Risk (AR) is the probability that the auditor issues a clean opinion when the financial statements are materially misstated. Note that acceptable level of audit risk is
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ACCOUNTING 54-AUDITING 88 4th Street Campus Spring 2015 Tony Viertel CRN: 35238 Section: 581 Units: 3 Class Meeting: Wednesday 6:00 p.m. – 8:50 p.m. Class Room Location: 321 Prerequisite: Accounting II Office: Cloud Hall‚ Room 405 Office hours: Wednesday & Thursday 3:30 p.m. – 4:30 p.m. or by appointment Telephone: (415) 452-7407 E-mail: cviertel@ccsf.edu REQUIRED TEXTS & WEBSITE ACCESS Course Name: Spring 2015 Accounting 54 Course ID: viertel75704 Auditing and Assurance Services‚ 15th ed.‚ Arens
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and Legal Liability with Regard to Private Auditors in Ethiopia”: For the Fulfillment of M.Sc Program in Accounting and Finance Adviser: Johannes Kinfu (Prof) By: Muluneh Beyene Addis Ababa University School of Gradate Studies Department of Accounting and Finance July‚ 2007 Addis Ababa Statement of Certification This is to certify that Muluneh Beyene has carried out his research work on the topic entitled “The Auditors Professional Responsibilities and Legal Liability with Regard
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Donoghue vs Stevenson (1932) is the first case law relevant of liability to third party. However‚ in this case‚ the liability is only established if there are physical harms of loss by third parties (not economic losses) Candler & Crane Chrismas (1951) is the next stage of development‚ where there is liability for financial loss if there is a contractual relationship‚ a fiduciary relationship or a fraud Hedley Byrne & Co Ltd vs Heller & Parties Ltd (1963) is a significant point of development
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Running head: MANAGING CURRENT LIABILITIES Managing Current Liabilities: The Great Balancing Act 06/26/2011 One of the most crucial steps in running a major corporation is ensuring that the balance sheet truly reflects the viability of the company. If investors feel that a firm holds too much debt reflecting in poor financial ratios‚ their stock price may become depressed resulting in angry shareholders. Therefore‚ why do companies engage in leveraging activities and worry about contingencies
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iA Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because‚ similar to a corporation‚ owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership‚ providing management flexibility and the benefit of pass-through taxation. Owners of an LLC are called members. Since most states do not restrict ownership‚ members may include individuals‚ corporations‚ other LLCs and foreign entities
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