For each of the following situations, state the key threats to auditor independence (from the five threats identified in SECTION 300 of APES 110).

Situation 1: An employee of an audit client who has influence over the preparation of the financial report, resigns and takes up a position with the audit firm.

Situation 2: A member of the assurance team resigns and takes up a position as a director with an audit client.

Situation 3: A member of the assurance team serves as the company secretary of an audit client.

Situation 4: An audit firm is concerned about losing a significant client.

Situation 5: An audit partner has a longstanding friendship with the CFO of the audit client.

1. State whether the following are true or false. Explain your statement.

1. A finding that small firms earn higher returns than large firms would provides evidence against the weak form of the efficient market theory. (5 marks)
2. Proponents of the EMH typically advocate a passive investment strategy. ( 5 marks)

(T / F) Please state True or false for the following questions and explain your reasons.

1. A transitory fiscal expansion with fixed exchange rates raises the stock of foreign exchange reserves of the central bank. True or false, and why?
2. Permanent increases in the money supply are more effective in raising the level of income under a flexible exchange rate system than under a fixed exchange rate system. True or false, and why?

Determine the ground electronic state of the BeC molecule. Explain your answer.

The answer requires the molecular orbital diagram as well as an electron configuration.

QUESTION 4

State whether each of the following are TRUE or FALSE, and explain your reasoning for the answer:

1. The binomial distribution is defined by its mean and standard deviation.

2. As the sample size increases, the standard error of the mean decreases.

3. If the population distribution is unknown, in most cases the sampling distribution of the mean can be approximated by the normal distribution if the samples contain at least 10 observations.

(b)       Suppose the following trend line and seasonal indices were obtained from four (4) years of sales data (in $ million) for a multinational grocery chain from 2012 to 2015.

Trend line:        y_t = 112 + 2.6t

Seasonal Effect:

1. Interpret fully the seasonal indices for the first and second quarters.

   (1 mark)

2. Forecast the sales value in the fourth quarter for the next year (2016).

(1 mark)

state and explain the three most popular theories of industrial relations.support your explanation with their practical assumptions

20marks

Sometimes a data dictionary is called as ‘the database designer’s database’. State and explain your opinion regarding this term and support your position using real-life scenarios.

Explain the role of pressure gradients in the cardiac cycle. Your answer should state the relationship between pressure gradients and blood flow. For each phase of the cardiac cycle, describe how pressure changes influence the direction of blood flow and the opening and closing of valves in the heart.

. State the social/cognitive perspective on personality, and explain in your own words the concepts proposed by Bandura and Rotter. Give a detailed personal example of how one of these concepts applies to you

State whether the following statements are true or false, and explain your answer if you judge the statement to be false (a statement must always be true to be considered true).

            i) In an efficient market all investments should have the same long-run average return

            ii) In an efficient market all investors should have the same long-run average return

            iii) Stocks exhibiting positive or negative abnormal returns indicates market inefficiency

iv) Evidence of irrational behavior on the part of some investors proves that efficient market hypothesis is false