Explore of each of the questions below and provide your perspective :

1. A company faced by an elastic demand curve will always benefit by decreasing price. True or false? Explain.
2. In 2002 the U.S. Postal Service increased first-class postage rates from 34₵ to 37₵. The service had been losing money. One of the reasons is increased competition from companies such as United Parcel Service and Federal Express. Another reason is the use of faxes and e-mail, as well as electronic bill payment. With this decrease in demand for postal services, why do you think that the Postal Service is seeking a rate increase?

Interest rate. In​ 1972, Bob purchased a new Datsun 240Z for ​$2,500. Datsun later changed its name to​ Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for six times what he originally paid. What was​ Bob's annualized rate of return for the 30 years he owned this​ car? If he keeps the car for another thirty years and earns the same​ rate, what could he sell the car for in​ 2032?

What was​ Bob's annualized rate of return for the 30 years he owned this​ car?

The debate of whether an auditor who performs non-attest services (e.g. Consulting) for an audit client will have their independence impaired has been going on for some time in the accounting profession. While Sarbanes-Oxley Act of 2002 expressly restrict auditors from performing consulting and other non-attest services for their audit clients, the AICPA does not have such stringent restrictions.

Required: Present an argument why you believe that performing non attest services for an audit client would or would not impair an auditor’s independence for audits performed under either the PCOB auditing standards OR the AICPA auditing standards.

Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 1980, of 2100 dollars into an account that pays an effective rate of interest of 7.2 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.35 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal?

Your firm's triennial Peer Review is coming up in a couple of months, and your firm's managing partner has tasked you with the responsibility of updating the firm manual.  He is especially concerned about the chapter setting forth the firm's documentation standards, because it shows 2002 as the most recent revision date. He is certain standards must have changed since then. He wants you to toss out the existing chapter and start afresh. Create a chapter to be incorporated into your CPA firm's training manual. The topic of your chapter is the firm's standards for audit documentation. 

Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 1980, of 2050 dollars into an account that pays an effective rate of interest of 7.5 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.25 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal?

Question 1.

The riskless rate for this period is 3.5%, and the covariance between returns on IBM stock and the S&P500 over this period is 0.02276.

1E. What is the variance of the S&P500 over this period?

1F. What is IBM’s CAPM beta according to this data?

1G. What is IBM’s CAPM cost of equity according to this data?

1H. If IBM’s debt to equity ratio is 0.57, what is their unlevered cost of equity according to this model?

The requirements of SOX have been with the profession for over a decade since enacted in 2002 and has had an impact on the audit profession.

Discuss the impact the following have had on the profession and bring into your discussion:

a. Sarbanes-Oxley (and PCAOB), and

b. Fraud

Matters to consider including in your discussion:

a. Independence / objectivity,

b. value of internal control and risk assessment,

c. periodic performance of analytical procedures,

d. professional judgement,

e. separation of duties,

f. talking to the client, and

g. anything else you want to add to your discussion.

In your opinion, has SOX been effective?

QUESTION 1

Which of the following statements is/are correct? The balance on the financial account of R105 668m in 2009 indicates…
(a) the value of the stock of the assets and liabilities.
(b) the net change in South Africa’s foreign assets and liabilities.
(c) that the flows of inward investment by foreigners exceeded the flows of outward investment by south African residents

QUESTION 2

Which of the following statements is/are correct?
(a) The value of net gold exports was higher in 2009 than in 2002.
(b) There is a declining trend in the relative contribution of gold exports to the balance of trade.
(c) In 1998 gold exports comprised nearly half of all merchandise exports