1.) You are called upon to conduct an investigation concerning a possible embezzlement at a large company of over one million dollars. The source of the information regarding the alleged embezzlement is anonymous, but a check on your caller ID indicates that the call came from a large CPA firm which you know conducts independent audits. No other information is given and you have no suspected target mentioned. What steps, and in what sequence, would you take to conduct a thorough investigation.

2.) Assume that you decided to conduct interviews of personnel as part of your investigation in #1 above. Who would you interview, where would you conduct such interviews, and what would be your question sequence?

3.) While conducting your investigation in #1, why is it important to obtain evidence? What is evidence? What types of things can be considered as evidence? What does the term “chain of custody” mean and why is it important in fraud investigations?

4.) During the course of your investigation in #1, would you consider reviewing any public records? If so, what records, from what agencies, and why?

QUESTION:

Do you think the US should adopt IFRS. Why or why not? I really just want your opinion about changing from US GAAP to IFRS. What will be the pros and cons?

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At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:

At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows

Depreciation methods and useful lives:

Buildings—150% declining balance; 25 years.

Machinery and equipment—Straight line; 10 years.

Automobiles and trucks—150% declining balance; 5 years, all acquired after 2014.

Leasehold improvements—Straight line.

Land improvements—Straight line.

Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2018 and other information:

On January 6, 2018, a plant facility consisting of land and building was acquired from King Corp. in exchange for 32,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $246,000 and $574,000, respectively.

On March 25, 2018, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $234,000. These expenditures had an estimated useful life of 12 years.

The leasehold improvements were completed on December 31, 2014, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2020, was renewable for an additional four-year term. On April 30, 2018, Cord exercised the renewal option.

On July 1, 2018, machinery and equipment were purchased at a total invoice cost of $332,000. Additional costs of $11,000 for delivery and $57,000 for installation were incurred.

On August 30, 2018, Cord purchased a new automobile for $13,200.

On September 30, 2018, a truck with a cost of $24,700 and a book value of $10,400 on date of sale was sold for $12,200. Depreciation for the nine months ended September 30, 2018, was $2,340.

On December 20, 2018, a machine with a cost of $20,500 and a book value of $3,150 at date of disposition was scrapped without cash recovery.

Required:

1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2018. Do not analyze changes in accumulated depreciation and amortization.

2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2018.

1.

                                                       Cord company

                                    Analysis of changes in plant assets

                                      For the year ending december 31, 2018

2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2018.

                                              Cord company

                              Depreciation and amortization expense

                                 For the year ending december 31 2018

Free cash flow valuation   Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public​ offering, managers at Nabor have decided to make their own estimate of the​ firm's common stock value. The​ firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.

The​ firm's weighted average cost of capital is

13 %

and it has

$2,480,000

of debt at market value and

$500,000

of preferred stock at its assumed market value. The estimated free cash flows over the next 5​ years, 2016 through​2020, are given in the​ table,

. Beyond 2020 to​ infinity, the firm expects its free cash flow to grow by

5 %

annually.

a.  Estimate the value of Nabor​ Industries' entire company by using the free cash flow valuation

model.

a.  The value of Nabor​ Industries' entire company is

​$ ? nothing.​(Round to the nearest​ dollar.)

5. Following information is available for two companies. Analyze the information and answer the questions: a. M G Industries manufactures various types of industrial chemicals. The company had a total asset turnover of 2.5 times for the year ended 31st March 2019. The sales for the year were ₹ 35,50,000. Total assets were ₹ 12,35,890 as on 31st March 2018. Assume that compared to 31st March 2019, total assets were projected to increase by 12% by 31st March 2020. The company projected a total asset turnover of 2.8 times for the year ending 31st March 2020. Given this information, what are the projected sales for year ending 31st March 2020? b. An airline company has taken many aircrafts on lease. Its EBIT for the year ended 31st March 2019 was ₹124.68 crores. Interest coverage ratio was impressive at 5.6 times. However its fixed charges coverage ratio was only 1.4 times. The fixed charges were lease rentals for the aircrafts. Given this information, calculate the lease rentals for the year.

A study considered the question, "Are you a registered voter?" Accuracy of response was confirmed by a check of city voting records. Two methods of survey were used: a face-to-face interview and a telephone interview. A random sample of 93 people were asked the voter registration question face to face. Of those sampled, seventy-eight respondents gave accurate answers (as verified by city records). Another random sample of 83 people were asked the same question during a telephone interview. Of those sampled, seventy-three respondents gave accurate answers. Assume the samples are representative of the general population. (a) Let p1 be the population proportion of all people who answer the voter registration question accurately during a face-to-face interview. Let p2 be the population proportion of all people who answer the question accurately during a telephone interview. Find a 95% confidence interval for p1 – p2. (Round your answers to three decimal places.) lower limit upper limit (b) Does the interval contain numbers that are all positive? all negative? mixed? Comment on the meaning of the confidence interval in the context of this problem. At the 95% level, do you detect any difference in the proportion of accurate responses from face-to-face interviews compared with the proportion of accurate responses from telephone interviews? Because the interval contains only positive numbers, we can say that there is a higher proportion of accurate responses in face-to-face interviews. Because the interval contains both positive and negative numbers, we can not say that there is a higher proportion of accurate responses in face-to-face interviews. We can not make any conclusions using this confidence interval. Because the interval contains only negative numbers, we can say that there is a higher proportion of accurate responses in telephone interviews. . (c) Test the claim that there is a difference in the proportion of accurate responses from face-to-face interviews compared with telephone interviews. Use α = 0.05. (i) What is the level of significance? State the null and alternate hypotheses. H0: p1 = p2; H1: p1 < p2 H0: p1 = p2; H1: p1 > p2 H0: p1 > p2; H1: p1 = p2 H0: p1 = p2; H1: p1 ≠ p2 . (ii) What sampling distribution will you use? What assumptions are you making? The Student's t. We assume that both population distributions are approximately normal with known standard deviations. The Student's t. We assume that both population distributions are approximately normal with unknown standard deviations. The standard normal. We assume that both population distributions are approximately normal with known standard deviations. The standard normal. We assume that both population distributions are approximately normal with unknown standard deviations. What is the value of the sample test statistic? Compute the corresponding z or t value as appropriate. (Test the difference p1 − p2. Round your answer to two decimal places.) (iii) Find (or estimate) the P-value. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value. WebAssign Plot WebAssign Plot WebAssign Plot WebAssign Plot. (iv) Based on your answers to parts (i)-(iii), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α? At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant. At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant. (v) Interpret your conclusion in the context of the application. Fail to reject the null hypothesis, there is sufficient evidence to suggest that the proportion of accurate responses from face-to-face interviews differs from the proportion for telephone interviews. Reject the null hypothesis, there is sufficient evidence to suggest that the proportion of accurate responses from face-to-face interviews differs from the proportion for telephone interviews. Reject the null hypothesis, there is insufficient evidence to suggest that the proportion of accurate responses from face-to-face interviews differs from the proportion for telephone interviews. Fail to reject the null hypothesis, there is insufficient evidence to suggest that the proportion of accurate responses from face-to-face interviews differs from the proportion for telephone interviews.

Jake was the owner of Top Flight Furnishings, Inc., a small corporation. Jake is the CEO, and there are no other officers. Jake used the company’s bank account as his own, used the company’s cars, and regularly took home furnishings from the store. Jake also failed to maintain liability insurance on the business. After several accidents where chair legs bought at Top Flight were falling off and causing injuries to customers, a group of customers sued the company. However, because Jake had been spending all the company’s money and had let its insurance policy lapse, the business was broke, and the customers wanted to hold Jake personally liable. Jake argues that because the business is a corporation, the liability lies with the corporation, not with him. Who is correct, Jake or the customers? Why or why not?