The internal auditor of a small company has recommended to the CEO that it invest in a disaster recovery plan (DRP) because of several identified vulnerabilities. Traditional in-house DRP approaches are, however, not a viable option because the company lacks the necessary IT resources to implement and manage these tasks. The auditor has suggested that outsourcing disaster recovery to a cloud-based service provider may be a reasonable alternative. The CEO has no experience with cloud computing and has asked the internal auditor to provide him with more information.

Required:

Prepare a report outlining cloud computing. Your report should address the following:

1. Define cloud computing.
2. List the key features of cloud computing
3. Describe how the services provided under cloud computing relate to disaster recovery planning.
4. Outline the risks associated with this technology

1. a CEO of a company hear about your qualifications as a an IS consultant and approached you for consultation. she told you that currently they don't have a real information systems in their organization. The employees use Excel, Word, and other similar programs to support their organization. She told you that she was informed by a friend of hers that it is possible to lower costs , increase sales, increase efficiency, and sometimes even to gain a competitive advantage by appropriate use of real information systems. (e.g., an ERP software package to manage inventory, accounting, purchasing, sales, production, and other organizational units). Following her friend’s explanation, she decided to install an ERP software package in her company, she found a good one for heading this activity who was highly recommended by a colleague of hers. During the process of interviewing this candidate, she was impressed by his skills and personality and was about to offer him the job. Then the candidate told her that in order for him to accept the offer, she has to appoint him as a CIO and let him have a seat at the executive table. The CEO thought and then realized that appointing the IT manager as the CIO will cost her a lot. The position at the executive level will entitle him to a higher salary, and a lot of other resources. Like all the other “C” level executives receive. On the other hand, as she told you, while the other executive deserve the additional resources since their contribution to the organization and tis operation and performance is well defined and appreciated for a long time. (e.g., the HR, finance, and operation VPs), the contribution of the IT is not as tangible. They just provide some reports, and these reports may not justify the cost. As a consultant that is fully aware of the business perception, and of the difficult economic situation, you realize the importance of cost saving. What will you advise the CEO to do? Please explain.

Read the questions below and answer as if you are the CEO of the company:

1. When a person doesn’t work all the hours they are supposed to during the day, are they defrauding the company?
2. Is allowing a person to work overtime if they don't need to defrauding the company?
3. Why must I learn to balance the cash account when I put the money in the bank to protect it?
4. Do I have a legal obligation to give cash back to someone when I have no idea who that person is?

If you are a CEO of a company, why do you think it is important to apply the "Design Thinking"? how it will change and affect? ( Answer: Write everything you know about design thinking theory using (Empathy, Define, Ideate, Prototype, Test))

Question 1

A US company that has purchased inventory from a German supplier would be exposed to a net exchange gain on the unpaid balance if

a-The amount to be paid was denominated in dollars

b-The Dollar weakened in relation to the Euro and the Euro was the denominated currency

c-The Dollar strengthened relative to the Euro and the Euro was the denominated currency

d-The company signed a forward contract for the purchase of Euros

Question 2

When the affiliated companies sell on credit the commercial balances, the accounts receivable and the intercompany payables:

a-Appear only in the books of the parent in the consolidated statements

b- They appear only in the books of the subsidiary in the consolidated statements

c-Appear in the books of both the parent company and the subsidiary in the consolidated statements

d-They do not appear in the consolidated statements

Question 3

You are the controller of company P and you have been asked to review this situation to see if it is in the best interest of the company. Company P would like to sell bonds to obtain financing. Company P has an 80% interest in company S and interest rates are down. Company S is smaller than company P and has a lower credit rating. Company P wants to reduce interest costs on company debt S. You have decided

a-Intercompany debt is eliminated when the consolidated statements are prepared so it would be a good idea

bThe intercompany debt would not be eliminated when the consolidated statements are prepared, therefore, it shows a high current relation with the parent company.

c-The intercompany debt would not be eliminated when the consolidated statements were prepared, which would show a high current ratio with the subsidiary

d-A parent can not incur debt for a subsidiary

Question 4

A sign of significant influence in the accounting of capital investments would be:

a-Shared management, employees or technology between the investment and the investor

b-Shared external auditor.

c-Greater percentage of ownership by third parties.

d-Great decrease in the market price per common share

Question 5

A company has purchased, for 50,000 FCs, an electric generator from a foreign company. The exchange rates were 1 FC = $ 0.90 on the delivery date and 1 FC = $ 0.76 when the payment was paid. What is the final value registered if the two-transaction method is used?

a- $ 38,000

b- $ 40,000

c- $ 45,000

d- $ 50,000

Question 6

A arm's length transaction, which would be reflected in the consolidated financial statements, would include:

a-A loan to the president of the subsidiary company

b-The purchase of material from a supplier abroad

c-The sale of fixed assets that are no longer needed to the subsidiary

d-Sales of inventory to a subsidiary

Question 7

The equity method of investment accounting would apply in which situation:

a-When 20-50% of preferred shares are owned

b-When a threshold of 15-20% of the ownership of ordinary shares is reached.

c-When consolidation is impracticable.

d - When less than 20% of the ordinary shares are owned, if the investor can exercise a significant influence over the operations of the investees.

Question 8

An economic advantage of a business combination includes

a-Use of duplicate assets

b-Create separate management teams

c-Coordinated marketing campaigns

d-Combination of levels horizontally within the marketing chain

Question 9

Assuming that the functional currency of a foreign subsidiary is not the local currency, which of the following accounts would be re-evaluated at the historical rate?

a-Accounts Payable

b-Notes payable in the long term

c-Lands

d-Sales Income

Question 10

Callie was admitted to the Adams & Beal Partnership four years ago. The association has a deficiency at the end of the year for the current year. How could this deficiency be accounted for?

a-Use the profit and loss ratios to absorb the deficiency

b-Do not account for the loss in the incurred year, this can be compensated with the income in future years

c-Do not account for the loss in the incurred year, this could be compensated with the income in future years or recovered to compensate the income in previous years

d-The losses are not transmitted to the individual partners of an association

New Macomb Wholesale Distributor made the following transactions in year 7.
Record all the transactions in general journal form.

feb 8th Bought inventory on account from Fountain Mfg. company for $18,600.00. terms 3/15, net 60.

feb 10th Paid $375 to Hare transport for shipping charges for inventory we are acquiring

feb 13th Sold merchandise on acct. to Alixx Co. for $92,500. All on acct. sales are with terms 1/10, net 30.
This merchandise cost us $55,500.

feb 16th Fountain Mfg. company issued us a 350.00 credit memo related to our purchase made on feb. 8th.

feb 17th Sold merchandise on acct. to Tyrone Sports Co. for $10,300. This merchandise cost us 9,455.

feb 19th Fully paid what is owed to Fountain Mfg.

feb 20th Alixx Co. returned 1/4 of what they purchased on the 13th.

feb 21st Alixx Co. fully paid what they owe us.

Mar 1st Tyrone Sports fully paid what they owe us.

KCT Farms (KCT) is a private Canadian company that produces markets and distributes a variety of dairy products including cheese, milk, and extended life milk and cream products. The Farm is located in Southwestern Ontario, however, they currently ship products to retailers in Ontario and Quebec. KCT farms incorporated 30 years ago by the Kris Family. The company has a June 30 year-end.

You have been hired to work in KCT’s finance department. In a recent meeting with the CEO, she indicated that the company is looking to obtain additional financing to expand their current operations to other provinces. If that expansion is successful, KCT is hopeful that they will be able to gain attention of international investors and will be able to expand into the US, Europe and beyond. However, for the time being, the company has approached the bank for additional financing. The bank has requested that KCT provide GAAP compliant financial statement. The Kris family does not really know much about GAAP, and what their options are, and has asked that you provide some context.

It is now July 15, 2019 and you are preparing the year-end financial statements and note disclosures. You meet with the CEO and she has asked that you provide assistance prioritizing the issues facing KCT. In your discussion, following contentious issues were identified:

- During the year, KCT sold a parcel of land with a gain of $1.5million. The $4.8 million sales price has been included in sales and the $1.3 million carrying amount has been included in cost of goods sold.

- KCT accounts for its capital assets on an historical cost basis, but has not recorded depreciation on a few specific pieces of equipment. The assets in question include: Land costing $1.2 million a new state of the art manufacturing facility costing $10.5million, and 10 new processing machines costing $200,000 each. The Company’s owners have always felt that depreciation does not represent the true economic value of the equipment, and skewed the overall income in a way that is not meaningful to investors.

- During 2018, an ex-employee sued KCT in the amount of $450,000 for wrongful dismissal. Correspondence between the KCT legal team and the plaintiffs counsel indicates that a settlement of $125,000 would be acceptable to the employee. KCT has not yet agreed, but their legal counsel is suggesting that they go forward with the out of court settlement. If an agreement does not come about, court proceedings would not commence late until 2019. KCT plans to record the amount in the financial statements when the final amount is finalized.

Prepare your report to the CEO that addresses the contentious accounting issues. Provide support for your recommendations. Using the CPA way to solve this Case

A random sample of 40 students taken from a university showed that their mean GPA is 2.94 and the standard deviation of their GPAs is .30. Construct a 99% confidence interval for the mean GPA of all students at this university

Suppose that at a large university 30% of students are involved in intramural sports. If we randomly select 12 students from this university, what is the probability that no more than 4 of these students are involved in intramural sports?

On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,360,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,360,000 and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is re-established.

The following events and transactions occurred during the fiscal year ended June 30, 2020. Record them in the Belvedere Community Trust Fund:

1. On July 1, the original gift of cash was received.
2. On August 1, $2,212,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,867). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1.
3. On August 2, $904,000 in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January 31 and July 31.
4. On October 1, the first semiannual interest payment ($55,300) was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution.
5. On January 31, a cash dividend was received from ABC Company in the amount of $25,000.
6. On March 1, the ABC stock was sold for $921,000. On the same day, DEF Company stock was purchased for $980,000.
7. On April 1, the second semiannual interest payment was received from XYZ Company.
8. During the month of June, distributions were approved by the Board and paid in cash in the amount of $93,000.
9. Administrative expenses were recorded and paid in the amount of $7,000.
10. An accrual for interest on the XYZ bonds was made as of June 30, 2020.
11. As of June 30, 2020, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,213,000. The fair value of the DEF stock was determined to be $976,000.
12. Closing entries were prepared.

Required:
a. The above events and transactions occurred during the fiscal year ended June 30, 2020. Record them in the Belvedere Community Trust Fund.
b. Prepare (1) a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and (2) a Statement of Fiduciary Net Position.

Requirement 1:

On July 1, the original gift of cash was received.

On August 1, $2,212,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,867). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1.

On August 2, $904,000 in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January 31 and July 31.

On October 1, the first semiannual interest payment ($55,300) was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution.

On January 31, a cash dividend was received from ABC Company in the amount of $25,000.

On March 1, the ABC stock was sold for $921,000.

Record the entry for the purchase of DEF Company stock on March 1 for $980,000.

On April 1, the second semiannual interest payment was received from XYZ Company.

During the month of June, distributions were approved by the Board and paid in cash in the amount of $93,000.

Administrative expenses were recorded and paid in the amount of $7,000.

An accrual for interest on the XYZ bonds was made as of June 30, 2020.

As of June 30, 2020, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,213,000. The fair value of the DEF stock was determined to be $976,000.

Record the closing entries.

Requirement 2:

Prepare a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund.

Requirement 3:

Prepare a Statement of Fiduciary Net Position.