You are an Audit Senior currently planning the 30 June 20X8 audit of Steel Limited, an Australian-owned company that produces and exports steel to India. At a recent planning meeting with Steel Limited’s senior staff, you obtained the following overview of this year’s operations:

Tight checks by Australian custom officials to halt the smuggling of scrap steel have delayed several shipments of steel. These delays have angered Indian customers who are threatening to deduct 20% from the amounts owing as compensation for lost production time.

One of Steel Limited’s customers, Construction Limited, is claiming that the latest batch of steel it received was found to have very high levels of cheap additives such as boron. Such additives used to reinforce concrete can affect the metal’s strength when it is welded. Boron can make welds more likely to crack, weakening structures. Construction Limited is refusing to pay its account, which is allegedly five months overdue. Steel Limited has claimed to have launched an investigation into the allegations, but as yet not been able to substantiate them.

70% of the suppliers from which Steel Limited sources it’s iron ore stock are owned by US firms, which demand payment in $US prior to the iron ore being supplied. In January, Steel Limited upgraded its accounts payable system to a fully integrated package that automatically updates the general ledger when creditor entries are made. Some problems have been experienced with the creditors ledger, which is split into $US and $AUD amounts. In some cases, $US amounts have been recorded as $AUD, resulting in inaccurate creditor balances. Month-end rollovers have also proved problematic, with creditor balances being incorrectly re-set to zero at the first of every month. This has required each creditor’s history to be re-entered manually each month, a time-consuming process that is taking accounting staff away from their normal duties.

During the period, the Australian dollar has remained steady against the Indian Rupee, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and payment is received in $US one month after the shipment is delivered. It takes around six weeks for the charter vessels to travel from Steel Limited’s shipyard at Ausfold Bay to India. A recent downturn in the Indian economy is affecting forward orders, which have fallen by 15%.

Required: Prepare a memorandum to the audit manager, outlining your risk assessment relating to Steel Limited. When making your risk assessment:

(a) Identify three (3) key account balances from the information provided that are subjected to an increase in audit risk. Briefly explain what factors increase the audit risk associated with the three (3) accounts identified. In your explanation, please mention the key assertion(s) at risk of material misstatement and the components of the audit risk model affected for each account identified.

(b) Identify how the audit plan will be affected and recommend specific audit procedures to address the risks associated with each account identified.

Suppose that the restaurant market is a perfectly competitive industry in long run equilibrium. Each of the identical restaurants has the same (long run) cost function: T C = 225 + q 2 , where q is the volume of sales by each establishment. Each of the identical firms therefore have the same marginal cost: MC = 2q. (a) What is the average cost function for the identical restaurants? (b) How much does each individual firm produce in the long run competitive equilibrium? (c) What price do you expect to observe in the long run competitive equilibrium? Page 2 (d) If the market quantity demanded at the price you solved for in (b) is 3,000, how many restaurants do you expect to observe in the marketplace? (e) What can you say about the economic profits earned by each of the individual restaurants? Does the same statement hold true for accounting profits? Why or why not?

5a. Suppose that any given individual firm in this same perfectly competitive industry has the following:
?? = 0.6?3 − 1.9?2 + 5? + 30

??? = 0.6?2 − 1.9? + 5 + 30/?

?? = 1.8?2 − 3.8? + 5

Also, assume the market price is P* = 10.

Find the quantity that the individual firm would produce at this price. Round your answer to the nearest
whole number. Show work. You will have to use the quadratic formula.

5b Using your rounded quantity, what is the short-run profit or loss earned by a typical firm in this industry
at this market price? Don’t round your profit answer. Show work

6. Draw a graph showing this single firm (the ATC and MC functions) and its profit or loss. To do this, you
will also have to show the price, quantity chosen by the firm, and the average costs of production at that
output level. Label everything clearly.

Consider the following schema:

product (pname, price, category, manufacturer)

Purchase (buyer, seller, store, product)

Company (cname, stock price, country)

Person(per-name, phone number, city)

Write a suitable SQl for the following:

Ex #1: Find people who bought telephony products.

Ex #2: Find names of people who bought American products

Ex #3: Find names of people who bought American products and they live in Seattle.

Ex #4: Find people who have both bought and sold something.

Ex #5: Find people who bought stuff from Joe or bought products from a company whose stock prices is more than $50.

“WakeUP”, a Mississippi company that produces coffee products, sells their products throughout the United States and is considering expanding its business into Europe. If so, they will have income derived from sales to US Customers and income derived from sales within Europe. Assess the impacts that selling their products abroad will have to WakeUP and any tax incentives that will apply to their situation.

Case Study – THE CROWN PRINCESS

Given Facts:  Company: Matrix Systems, Inc., large conglomerate with over 35,000 employees  Competitor Company: Trilinear Systems Inc., small and quite aggressive company outfit  Alice Miller, MBA graduate from Stanford, graduating in the top one percent of her class, capable and hardnosed, ambitious and quite good in her interpersonal relations.  She showed that she was a very high potential employees resulting from putting her to a fast track promotions.  In her third year at Matrix, she was put in charge of a top secret, highly technical government contract  After 3 months, Alice was put in charge of this project and her Boss started to receive 7 resignations from key technical people working on the contract.  If they left, there was no way that matrix could fulfill and worst, all these 7 employees applied for the competitor company Trilinear and the company was seriously thinking of hiring them  Mr. Baker figured out that they were mad not to Alice but to the crown princess problem Questions:

1. What should Mr. Baker do as HR Manager?

2. What should Alice do? Remember, it's hard to stay on the fast track when you are a loser, and she will end up a big loser in this situation.

3. Is it a good idea to have crown princess and fast tracks for minorities and females? Why or why not?

4. Matrix has 10 levels of management in its organization. If it hired talented people at the lowest level and they spent 5 years in that level learning the job, it would take 50 years to get on the top. What besides the track /crown princess option does Matrix have?

Gabe and Dana are married and file jointly. For 2019, Gabe earned $150,000 and Dana earned $20,000 working part time as a party planner. They have two young children, a 4-year old son, Mike, and a 6-year old daughter, Chrissy. In order to work, they paid the following for day care to have their children watched and cared for:

​How much was their child and dependent care tax credit for 2019?

The director of publications for a university is in charge of deciding how many programs to print for football games. Based on the data, the director has estimated the following probability distribution for the random variable X= number of programs sold at the university football game:

X 25,000 40,000 55,000 70,000

P(X) 0.1 0.3 0.45 0.15

a)Compute the expected number of program sold at the university football game.

b)Compute the variance of program sold at the university football game.

c) Each program cost $1.25 to print and sells for $3.25. Any programs left unsold at the end of the game are discarded. The director has decided to print ether 55,000 or 70,000. Which of these two options maximizes the expected profit from program?

The director of publications for a university is in charge of deciding how many programs to print for football games. Based on the data, the director has estimated the following probability distribution for the random variable X= number of programs sold at the university football game:

X 25,000 40,000 55,000 70,000

P(X) 0.1 0.3 0.45 0.15

a)Compute the expected number of program sold at the university football game.

b)Compute the variance of program sold at the university football game.

c) Each program cost $1.25 to print and sells for $3.25. Any programs left unsold at the end of the game are discarded. The director has decided to print ether 55,000 or 70,000. Which of these two options maximizes the expected profit from program?