You are considering an audit engagement with a new, privately held entrepreneurial company (Moxy, Inc.) headed by Ryan Morris, a charming CEO. The company specializes in chemical lawn treatments. Ryan indicates that his business has really taken off, and he shows you last year’s financial statements, which show a sales growth increase from $1,200,000 to $4,500,000 and gross profit growth from $575,000 to $2,800,000 in just one year. He has had to finance this growth with an $850,000 short-term promissory note, but would like to go public and attract investors. He also gives you the following limited information from his balance sheet:

Required:

(a) Discuss why engagement risk, professional skepticism, and assessment of fraud risk are important in this scenario.

(b) Calculate the current ratios for year one and year two. What concerns do these calculations raise?

(c) Present at least three questions you would like to ask Ryan about the information provided, before making your decision about accepting the client.

answer in your own words, 4 sentences, ty

Interview questions:

What evidence do you have that you have created a positive climate or culture at your current employer?

Give an example of a time when you held an employee/peer accountable for results

MOST POPULAR : Business Analyst Interview Question

1. Describe A Time When You Improved A Business Process

2.Six Ways To Manage Conflicts Between Stakeholders

3.How Do You Conduct A Gap Analysis?

4.What Is Business Process Mapping?

1. Robert started an accounting firm in 2020 and organized as a partnership. Performance of services began on July 1, 2020. The following expenditures were associated with the partnership’s activities in 2020:
   
   

1. What is the total amount of the start-up costs expenditures? What is the total amount of organizational expenditures?
2. Ignore your answer in a. Assume that the total amount of start-up costs expenditure is $48,200 and the total amount of the organizational expenditure is $17,900. What amount of the start-up costs may the partnership immediately expense in 2020? What amount of the organizational expenditures may the partnership immediately expense in 2020?
3. Ignore your answer in a. Assume that the total amount of start-up costs expenditure is $48,200 and the total amount of the organizational expenditure is $17,900. Also, assume that the company immediately expensed $5,000 of start-up costs and $5,000 organizational cost. What amount can the partnership deduct as amortization expense for the organizational expenditures for 2020 (not including the amount it immediately expensed)? What amount can the partnership deduct as amortization expense for the start-up costs for 2020 (not including the amount it immediately expensed)?

Blue Company sold 30,000 units of its only product and incurred a $85,000 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2020’s activities, the production manager notes that variable costs can be reduced 25% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $175,000. The maximum output capacity of the company is 55,000 units per year. Blue Company Contribution Margin Income Statement For Year Ending December 31, 2019 Sales $900,000 Variable $680,000 Contribution Margin $220,000 Fixed Cost $305,000 Net Loss $(85,000) Compute the break-even point in dollar sales for year 2019. (Round your answers to 2 decimal places.) Compute the predicted break-even point in dollar sales for year 2020 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.)

In 2020, Oriental Company sold 800 units at RM500 each. Variable costs were RM250 per unit, and fixed costs were RM200,000. The selling price is expected to increase by 10% for 2021 and unit sold is 1,250 units. Oriental Company is tentatively planning to invest in equipment that would increase fixed costs to RM255,000, while decreasing variable costs per unit by 12%.
Instructions
(a) Compute the break-even point in Ringgit Malaysia (RM) for the year 2020 by using mathematical equation. (Show all workings).                                    
(b) Compute the break-even point in Ringgit Malaysia (RM) for the year 2021 by using mathematical equation. (Shows all workings).                                            
(c) Compute the total sales in Ringgit Malaysia (RM) that the company need to generate, if the company wish to earn net income of RM900,000 in the year 2021 by using mathematical equation. (Shows all workings).                                                                                                                
(d) Compute margin of safety in Ringgit Malaysia (RM) and in ratio for the year 2021. (Show all workings).                                

Which corporation is eligible to make the S election?

A- Foreign corporation.

B- A one-shareholder corporation.

C- An insurance company

D- A US. bank

E- None of the above can select S status.