You are an Audit Senior currently planning the 30 June 20X9 audit of Technology Limited, an Australian-owned company that produces and exports computer chips to China. At a recent planning meeting with Technology Limited’s senior staff, you obtained the following overview of this year’s operations: Tight checks by Australian custom officials have delayed several shipments of computer chips. These delays have angered Chinese customers who are threatening to deduct 20% from the amounts owing as compensation for lost production time. One of Technology Limited’s customers, Blue Chip Limited, is claiming that the latest batch of computer chips it received was found to be faulty. Blue Chip Limited is refusing to pay its account, which is allegedly seven months overdue. Technology Limited has claimed to have launched an investigation into the allegations, but as yet not been able to substantiate them. Technology Limited has suffered significant cash flow problems because another major customer, Creative Limited (Creative), is experiencing financial difficulties. As a result, Creative is taking well over 120 days to pay outstanding amounts, despite Creative’s terms of trade being payment within 30 days. Creative makes up 40 per cent of Technology Limited’s sales and the board has been reluctant to take any action that might adversely affect those sales. Consequently, Technology Limited has had to increase its dependency on its line of credit, and this has caused it to temporarily breach the debt to equity ratio required in its loan covenant with Big Bank Limited. One of Technology Limited’s major suppliers went bankrupt one month ago, causing major product shortages. To overcome the problem, Peter James, the husband of the finance director, Natalie James, provided electronic components used in the production of computer chips to Technology Limited through his private company Norton Limited. Norton Limited demands payment in $US prior to the electronic components being supplied. There is no formal agreement in place with Peter James, however, the goods are being provided at competitive prices. You are concerned about the electronic components that Peter James’ company is supplying, because his products are new to the market and you have heard some of Technology Limited’s staff complaining that they are of poor quality. Due to increased competitive pressure, Technology Limited has recently moved the manufacture of some of its computer chips to Bangladesh. Technology Limited saves around 25 per cent in costs compared to the equivalent Australian made items. However, the manufacturing process takes longer and on a few occasions late delivery from Bangladesh has resulted in lost sales. Last month, a protester suffered a broken leg, allegedly because he was hit by a company truck. The protester is now suing Technology Limited for damages, claiming the contractor was in fact an employee of Technology Limited at the time of the accident, and was acting on Technology Limited’s instructions. Technology Limited is fighting the case and appears to have a reasonable chance of winning; however, the adverse publicity being generated is making the company nervous about its sales in the future. During the period, the Australian dollar has remained steady against the Chinese Yuan, 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 Technology Limited’s shipyard at Bigmantle Bay to China. A recent downturn in the Chinese economy is affecting forward orders, which have fallen by 15%. Required: Prepare a memorandum to the audit manager, outlining your risk assessment relating to Technology Limited. When making your risk assessment: (a) Identify two (2) balance sheet accounts from the information provided that are subjected to an increase in audit risk. Briefly explain what factors increase the audit risk associated with the two (2) account balances 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 balance identified. (b) Identify how the audit plan will be affected and recommend specific audit procedures to address the risks associated with each account balance identified.
In: Accounting
Family History Taking/Pedigree Construction
Assignment
Mary Jones Fictitious Family History
Mary Jones, age 47, is presenting to the family practice office as
a new patient due to a change in her insurance coverage. Her
history is as follows; in the past she has had 2 normal screening
mammograms (last one performed 14 months ago) and all past pap
smears have been negative (the last one performed 13 months ago).
She has had two full term pregnancies and one documented
miscarriage. She is currently an administrator in a community
hospital. She exercises regularly and has no chronic health
conditions. She has been married for 13 years.
For this assignment you will need to construct Mary Jones’s family
pedigree. In order to do this, you will first need to take a family
history. Please provide a list of detailed questions you would ask
Mary to construct her family pedigree. Once you have completed your
questions you will then use the information below to construct the
pedigree.
The following bulleted text contains information about Mary’s
family members (you can choose / make up the ancestral backgrounds
of the different family branches)
• Mary’s 1st child: Cathy Baker, age 31, healthy, has a son and
daughter ages 10 and 4. Cathy lives out of state, infrequently
communicates with her mother, was adopted and raised by her
paternal grandparents. There is no information about Cathy's
biological father's health other than he is alive as are his
parents. Nothing else is known about his family history.
• Mary’s Twin son and daughter, age 8, o Son, Derrick - (twin A)
has Down syndrome, is healthy (used to have problems with ear
infections but this has resolved), no structural heart anomalies,
wears glasses, is mainstreamed in 2nd grade classes with full time
teacher aide, receives speech services in school o Daughter, Tammie
- (twin B) healthy, in 2nd grade, good student
• Miscarriage was two years prior to delivery of the twins. The
miscarriage occurred during the 1st trimester. Gender is unknown.
No testing was performed on fetal tissue.
• Husband, David Jones, is 50 years old and healthy. He does not
have children from previous relationships.
• Mary has no brothers or sisters.
• Her mother, Martha Stewart, is 70 years old, has insulin
dependent diabetes, started taking insulin in early 50s, is obese,
and on medications for high blood pressure o Her mother had 5
siblings - 2 are still living: Sister, Hannah, died at age 8
years from pneumonia Sister, Susan, died in her mid 70s from
complications of diabetes. She had 1 son who is in his 50's,
apparently healthy and he has 4 adult children - health status and
number of offspring unknown Brother, Bill Junior, died at age 3
from pneumonia Living sister; Debbie, is in her late 60s, is also
obese and takes insulin injections. She has 4 children: 3 boys and
1 girl - health status and number of children unknown Living
brother; Mike, is in his early 60's, is on dialysis, is an
alcoholic, has two sons - health status and number of children
unknown (birth order: Hannah, Susan, Martha, Bill, Debbie,
Mike)
• Her father, Bill Stewart, died last year at age 69, COD - liver
failure, was also said to have an enlarged heart, rarely drank
alcohol, was slender in build, was on medication for arthritis in
the hips and knees. O Bill's only brother, David, is 67 years old,
and has arthritis. He has one son who is healthy and he has 2
sons.
• Mary’s Maternal grandmother, died in her 60's due to female
cancer
• Mary’s Maternal grandfather, died in his 60's, cirrhosis of the
liver, was an alcoholic
• Mary’s Paternal grandmother died in her 80's, heart failure
• Mary’s Paternal grandfather, died in his late 50's, lung cancer,
heavy smoker
I will rate it with thumbs up.
I need answers.
In: Biology
Taggart Transcontinental pays no dividends, but spent $4 billion on share repurchases last year. Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year. Taggart currently has 2 billion shares outstanding. Taggart's market capitalization is closest to:
A. $25 billion
B. $31 billion
C. $40 billion
D. $50 billion
In: Finance
PLEASE SHOW WORK:
1- You love travelling and have decided to join the 7 continent
travel club. Over the course of the next 7 years, you will go on a
guided tour on each of the seven continents. The cost for the trip
the first year is $12,000 and is payable today. After that, the
trip costs will increase 3% per year for the 6 remaining years. The
club gives three options for payment.
Assuming a 5% interest rate, which option would you choose?
A) Seven (7) annual payments beginning with the $12,000 payment
today. The payments will increase 3% per year.
B) One payment of $78,000 today and no additional payments for the
remaining 7 years.
C) One payment of $108,500 7 years from today.
2- You plan to take a year off to hike the Appalachian Trail.
You believe that it will cost $4,500 to buy gear and food for the
trip. You have $4,000 in your savings account and the
bank pays an interest rate of 4% APR compounded quarterly. you have
enough money for your trip?
A) Less than one year
B) Between 1 and 2 years
C) Between 2 and 3 years
D) Between 3 and 4 years
3- You receive $8,000 every six months beginning six months from
today for 10 years and an additional $2,500 10 years from today. If
the interest rate is 3.0% (EAR), which of the following is closest
to the present value (PV) of this stream of cash flows?
A) $137,499
B) $139,360
C) $144,148 D) $146,191
In: Finance
The following are misstatements that have occurred in Fresh Foods Grocery Store, a retail and wholesale grocery company:
|
1. |
On the last day of the year, a truckload of beef was set aside for shipment but was not shipped. Because it was still on hand the inventory was counted. The shipping document was dated the last day of the year, so it was also included as a current year sale. |
|
2. |
The incorrect price was used on sales invoices for billing shipments to customers because the wrong price was entered into the computer master file of prices. |
|
3. |
A vendor invoice was paid even though no merchandise was ever received. The accounts payable software application does not require the input of a valid receiving report number before payment can be made. |
|
4. |
Employees in the receiving department took sides of beef for their personal use. When a shipment of meat was received, the receiving department filled out a receiving report and forwarded it to the accounting department for the amount of goods actually received. At that time, two sides of beef were put in an employee's pickup truck rather than in the storage freezer. |
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5. |
An accounts payable clerk processed payments to himself by adding a fictitious vendor address to the approved vendor master file. |
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6. |
During the physical count of inventory of the retail grocery, one counter wrote down the wrong description of several products and miscounted the quantity. |
|
7. |
A salesperson sold an entire carload of lamb at a price below cost because she did not know the cost of lamb had increased in the past week. |
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8. |
A vendor's invoice was paid twice for the same shipment. The second payment arose because the vendor sent a duplicate copy of the original 2 weeks after the payment was due. |
Read the requirements
|
A. |
For each misstatement, identify one or more types of controls that were absent. |
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b. |
For each misstatement, identify the transaction-related management assertions that have not been met. |
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c. |
For each misstatement, suggest a control that may have prevented or detected the misstatement. |
a. For each misstatement, identify one or more types of controls that were absent. (Each control may be used more than once.)
Controls Options
|
i. |
Adequate separation of duties |
|
ii. |
Proper authorization of transactions and activities |
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iii. |
Adequate documents and records |
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iv. |
Physical control over assets and records |
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v. |
Independent checks on performance |
|
1. |
On the last day of the year, a truckload of beef was set aside for shipment but was not |
|
|
shipped. Because it was still on hand the inventory was counted. The shipping |
||
|
document was dated the last day of the year, so it was also included as a |
||
|
current-year sale. |
||
|
2. |
The incorrect price was used on sales invoices for billing shipments to customers |
|
|
because the wrong price was entered into the computer master file of prices. |
||
|
3. |
A vendor invoice was paid even though no merchandise was ever received. The |
|
|
accounts payable software application does not require the input of a valid receiving |
||
|
report number before payment can be made. |
||
|
4. |
Employees in the receiving department took sides of beef for their personal use. When |
|
|
a shipment of meat was received, the receiving department filled out a receiving report |
||
|
and forwarded it to the accounting department for the amount of goods actually |
||
|
received. At that time, two sides of beef were put in an employee's pickup truck rather |
||
|
than in the storage freezer. |
||
|
5. |
An accounts payable clerk processed payments to himself by adding a fictitious vendor |
|
|
address to the approved vendor master file. |
||
|
6. |
During the physical count of inventory of the retail grocery, one counter wrote down |
|
|
the wrong description of several products and miscounted the quantity. |
|
7. |
A salesperson sold an entire carload of lamb at a price below cost because she did not |
|
|
know the cost of lamb had increased in the past week. |
||
|
8. |
A vendor's invoice was paid twice for the same shipment. The second payment arose |
|
|
because the vendor sent a duplicate copy of the original 2 weeks after the payment |
||
|
was due. b. For each misstatement, identify the transaction-related management assertions that have not been met. (Each transaction-related management assertions may be used more than once.) |
Transaction - related Management Assertions
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Misstatements |
Transaction related management |
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1. |
On the last day of the year, a truckload of beef was set aside for shipment but was not |
|||||||||||
|
shipped. Because it was still on hand the inventory was counted. The shipping |
||||||||||||
|
document was dated the last day of the year, so it was also included as a |
||||||||||||
|
current-year sale. |
||||||||||||
|
2. |
The incorrect price was used on sales invoices for billing shipments to customers |
|||||||||||
|
because the wrong price was entered into the computer master file of prices. |
||||||||||||
|
3. |
A vendor invoice was paid even though no merchandise was ever received. The |
|||||||||||
|
accounts payable software application does not require the input of a valid receiving |
||||||||||||
|
report number before payment can be made. |
||||||||||||
|
4. |
Employees in the receiving department took sides of beef for their personal use. When |
|||||||||||
|
a shipment of meat was received, the receiving department filled out a receiving report |
||||||||||||
|
and forwarded it to the accounting department for the amount of goods actually |
||||||||||||
|
received. At that time, two sides of beef were put in an employee's pickup truck rather |
||||||||||||
|
than in the storage freezer. |
||||||||||||
|
5. |
An accounts payable clerk processed payments to himself by adding a fictitious vendor |
|||||||||||
|
address to the approved vendor master file. |
||||||||||||
|
6. |
During the physical count of inventory of the retail grocery, one counter wrote down |
|||||||||||
|
the wrong description of several products and miscounted the quantity. |
|
7. |
On the last day of the year, a truckload of beef was set aside for shipment but was not |
|
|
shipped. Because it was still on hand the inventory was counted. The shipping |
||
|
document was dated the last day of the year, so it was also included as a |
||
|
current-year sale. |
||
|
8. |
An accounts payable clerk processed payments to himself by adding a fictitious vendor |
|
|
address to the approved vendor master file. |
c. For each misstatement, suggest a control that may have prevented or detected the misstatement. (Use each letter corresponding to a control only once. Misstatements 4., 7., and 8. require two controls be selected.)
|
A. |
Include a control in the accounts payable software that requires the input of a valid receiving report number before the software will process a payment on an accounts payable. |
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B. |
Require a receiving report be attached to the vendor's invoice before a payment is made. |
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C. |
Fence in the physical facilities and prohibit employees from parking inside the fencing. |
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D. |
Carefully coordinate the physical count of inventory on the last day of the year with the recording of sales to make certain counted inventory has not been billed and billed inventory has not been counted. |
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E. |
Make sure that the salesperson has a current price list. |
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F. |
Require the accounting department to maintain perpetual inventory records and take physical counts of actual sides of beef periodically. |
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G. |
Changes to the computer master file of prices are reviewed when the master file is updated. |
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H. |
Require that payments only be made on original invoices. |
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I. |
Restrict the accounts payable clerk from being able to make changes to the approved vendor master file. Only allow purchasing personnel to input changes to that master file. |
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J. |
Counts by qualified personnel and independent checks on performance. |
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K. |
Require independent approval of all transactions, including the price, before shipment is made. |
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Control(s) to |
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Misstatements |
prevent or detect |
|||||
|
1. |
On the last day of the year, a truckload of beef was set aside for shipment but was not |
|||||
|
shipped. Because it was still on hand the inventory was counted. The shipping |
||||||
|
document was dated the last day of the year, so it was also included as a |
||||||
|
current-year sale. |
||||||
|
2. |
The incorrect price was used on sales invoices for billing shipments to customers |
|||||
|
because the wrong price was entered into the computer master file of prices. |
||||||
|
3. |
A vendor invoice was paid even though no merchandise was ever received. The |
|||||
|
accounts payable software application does not require the input of a valid receiving |
||||||
|
report number before payment can be made. |
||||||
|
4. |
Employees in the receiving department took sides of beef for their personal use. When |
|
||||
|
|
||||||
|
a shipment of meat was received, the receiving department filled out a receiving report |
||||||
|
and forwarded it to the accounting department for the amount of goods actually |
||||||
|
received. At that time, two sides of beef were put in an employee's pickup truck rather |
||||||
|
than in the storage freezer. |
||||||
|
5. |
An accounts payable clerk processed payments to himself by adding a fictitious vendor |
|||||
|
address to the approved vendor master file. |
||||||
|
6. |
During the physical count of inventory of the retail grocery, one counter wrote down |
|||||
|
the wrong description of several products and miscounted the quantity. |
||||||
|
7. |
A salesperson sold an entire carload of lamb at a price below cost because she did not |
|||||
|
know the cost of lamb had increased in the past week. |
||||||
|
8. |
A vendor's invoice was paid twice for the same shipment. The second payment arose |
|||||
|
because the vendor sent a duplicate copy of the original 2 weeks after the payment |
||||||
|
was due. |
||||||
In: Accounting
2. Complete the following sentences:
i. If the unemployment rate is rising and the labor force participation rate is rising, then the unemployment rate rose because
ii. If the unemployment rate is falling and the labor force participation rate is falling, then the unemployment rate fell because
iii. If the unemployment rate is rising and the labor force participation rate is falling, then the unemployment rate rose because
3. Classify the following individuals as employed (E), unemployed (U) or out of the labor force (NFL). If the individual is unemployed, identify the type of unemployment.
a. A college graduate spends the summer following graduation on a volunteer service trip to Venezuela before beginning her job search.
b. A college student advertises her willingness to pet sit but no one purchases her services.
c. A part-time college instructor is only able to find two classes to teach this semester, though he would like to work full-time.
d. After completing nursing school, Sarah has spent three months searching for a job in rural Missouri.
e. Mike lost his job at the financial services company when the country experienced a recession. He continues to search for a new position.
f. Recently, Mel has reduced Flo’s hours at the diner from 40 hours per week to 25 hours per week. Flo is frantically searching for a new full-time job while she continues to work at the diner.
g. Recently, Mel has reduced Flo’s hours at the diner from 40 hours per week to 25 hours per week. Flo is frantically searching for a new full-time job while she continues to work at the diner.
h. Melanie lost her position with a contemporary dance company when the new artistic director added the requirements that dancers be accomplished tap dancers. Melanie is searching for another position, because she never learned to tap.
In: Economics
QUESTION
1. What does a change in the quantity demand / supply imply and what is its difference from a change in demand / supply?
2. Consider the table below and answer the following questions
|
Price of A |
Quantity Demanded for A |
Quantity Supplied of A |
|
10 |
32 |
4 |
|
20 |
28 |
7 |
|
30 |
24 |
10 |
|
40 |
20 |
13 |
|
50 |
16 |
16 |
|
60 |
12 |
19 |
|
70 |
8 |
22 |
3. Draw the supply and demand curves
4. Why does supply curve have an upward slope and demand curve have a downward slope? Explain.
5. Determine Equilibrium Price and Quantity for Good A
6. Determine the amount of surpluses and shortages at P=30 and P=60
In: Economics
Question 2
Consider the demand schedule for the product produced by a monopolist in Table 2.
Table 2:
|
Quantity Demanded |
Price (RM) |
Total Revenue |
Marginal Revenue |
|
1 |
325 |
||
|
2 |
300 |
||
|
3 |
275 |
||
|
4 |
250 |
||
|
5 |
225 |
||
|
6 |
200 |
||
|
7 |
175 |
||
|
8 |
150 |
||
|
9 |
125 |
||
|
10 |
100 |
||
|
11 |
75 |
||
|
12 |
50 |
||
|
13 |
25 |
||
|
14 |
0 |
a) Complete the table.
[14 marks]
b) What do the data in the table indicate about the relationship between total revenue and
marginal revenue?
[3 marks]
c) What do the data in the table indicate about the elasticity of demand?
[3 marks]
[Total marks: 40]
In: Economics
7. FIFO Method: Perpetual Inventory System
Assume the following data with regard to inventory for Vegan Company:
| Aug. 1 | Inventory | 40 | units @ $10 per unit | $ 400 | ||
| 8 | Purchase | 50 | units @ $11 per unit | 550 | ||
| 22 | Purchase | 35 | units @ $12 per unit | 420 | ||
| Goods available for sale | 125 | units | $1,370 | |||
| Aug. 15 | Sale | 45 | units | |||
| 28 | Sale | 25 | units | |||
| Inventory, Aug. 31 | 55 | units | ||||
Calculate the cost of ending inventory and cost of goods sold according to the FIFO method under the perpetual inventory system.
| FIFO Method | |
| Cost of ending inventory: | $ |
| Cost of goods sold: | $ |
In: Accounting
Write a C program (using Code::blocks) that outputs a formatted header line and creates 10 children processes each of which displays a line of the output as shown below. Notice the values of Child no and x, they have to be the same as shown here while the processes PIDs values are based on the what your system assigns to these processes.
Child
PID
PPID X
0
13654 13653 5
1
13655 13653 10
2
13656 13653 15
3
13657 13653 20
4
13658 13653 25
5
13659 13653 30
6 13660
13653 35
7
13661 13653 40
8
13662 13653 45
9
13663 13653 50
In: Computer Science