You have recently graduated from your university and started work with an accounting firm. You meet an old school friend, Kim, for dinner—you haven’t seen each other for several years. Kim is surprised that you are now working as an auditor because your childhood dream was to be a ballet dancer. Unfortunately, your knees were damaged in a fall and you can no longer dance. The conversation turns to your work and Kim wants to know how you do your job. Kim cannot understand why an audit is not a guarantee the company will succeed. Kim also thinks that company managers will lie to you to protect themselves, and as an auditor you would have to assume that you cannot believe anything a company manager says to you.

Compose a letter to Kim explaining the concept of reasonable assurance, and how reasonable assurance is determined. Explain why an auditor cannot offer absolute assurance. Describe the concept of professional skepticism and how it is not the same as assuming that managers are always trying to deceive auditors. Explain to Kim why her perceptions are a perfect example of the expectations gap.

Dr. Smith and his wife are both medical doctors and they just completed their medical residence at a local hospital. While attending your graduation party, Dr. Smith and his wife learned that you just earned your MBA. The Smiths approached you for advice on the legal form of business they should elect for their medical practice they are planning to open. The Smiths are interested in understanding each form of business organization and advantages and disadvantages of each form.

In advising the Smiths, please address the following questions:

1.         Compare and contrast

a.         the forms of business organizations, advantages, and disadvantages.

b.         general partner vs. limited partner?

c.         limited liability partnership vs. a limited liability company?

2.         Explain the advantages and disadvantages of organizing a business as an “S-Corporation?”

3.         Explain if the form of business organization impact the control of the firm and ethical behavior.

Based on your discussion, explain which form of business organization you would advise the Smiths to elect. Defend your response.

Find the historical exchange rate of US dollar to CHF (Switzerland) and explain if the currency has appreciated or depreciated in relation to the US dollar. List some examples as to why this might have happened. For instance, an international event (one event is fine). Approach this from the event side, explore what happened to the exchange rate as an outcome of this particular event.

1. What is the balance of payments? Explain how s trade surplus in China with the US leads to a net capital outflow of investment from China to the US? Using the international macroeconomic model, show the model and describe the relation between output, spending, savings investment, trade balances, government budgets and capital investment across trading nations?

Write a complete java program to get input of a person’s age and their years of current USA citizenship. Tell them if they are eligible to run for US House of Representatives, US Senate, or President. At first, have the program just run once and give the answer for the given inputs. Give the answer in a nice format and be clear which offices the person can run for. Write good and complete pseudo code. Next, put that program in a function and call if from a loop that gets input’s from main (no input or output in the function itself). Have the loop run until the user enters 0 for their age. Finally, modify the input GUI so that the user enters only one number if years of citizenship is the same as age (two numbers when they are different). The rules for eligibility are: President: 35 years old and natural born citizen (age and year’s citizenship match) US Senate: 30 years old and 9 years citizenship US House of Representatives: 25 years old and 7 years citizenship.

Write a complete java program to get input of a person’s age and their years of current USA citizenship. Tell them if they are eligible to run for US House of Representatives, US Senate, or President. At first, have the program just run once and give the answer for the given inputs. Give the answer in a nice format and be clear which offices the person can run for. Write good and complete pseudo code. Next, put that program in a function and call if from a loop that gets input’s from main (no input or output in the function itself). Have the loop run until the user enters 0 for their age. Finally, modify the input GUI so that the user enters only one number if years of citizenship is the same as age (two numbers when they are different). The rules for eligibility are: President: 35 years old and natural born citizen (age and year’s citizenship match) US Senate: 30 years old and 9 years citizenship US House of Representatives: 25 years old and 7 years citizenship.

Issuing Company                    Years to maturity                    Yield

1. General Motors                   10 years                                   6.3 percent

2. NC Dept of Education        15 years                                   3.8 percent

3. US Treasury Strip               20 years, 0 coupon                  2.3 percent

4. York County B&T              15 years                                   5.6 percent                       

5. US Treasury                        10 years                                   3.4 percent

6. US Treasury                        20 years, 3.5 coupon               2.6 percent

7. Apple                                  15 years                                   4.1 percent

Briefly explain why these bonds have different interest rates

Do not use the same answer twice.

1. Bond 1 and Bond 2?

2. Bond 2 and Bond 6?

3. Bond 5 and Bond 6?

4. Bond 3 and Bond 7?

5. Bond 4 and Bond 7?

Foreign financial markets

1. A US investor purchased stock in a Canadian company on May 1, 2018 for C$82.15. The investor sold the stock on June 29 for C$88.75. What is the investor’s percentage return on the investment in Canadian dollars?

2. If the exchange rate for the Canadian dollar wat 1.2940 on May 1 and 1.2268 on June 29, what is the investor’s percentage return on the investment in US dollars?

3. How should an investor whose investment portfolio consists solely of domestic investments expect the risk of the portfolio to change if the investor adds foreign investments to the portfolio? Explain.

4. Name two ways a US investors can include foreign investments in their investment portfolios without the need to buy or sell investments in foreign securities markets.

We still have some room for comment on various financial ratios that you can look up and explain to us. Please take a look above at the financial ratios that have been covered so far in this discussion and pick a new one, show us its formula, and explain what it tells us about an organization's financial health. However, to add yet another fresh question on this topic...

Applying this new knowledge about the various analytical techniques we discussed this week, if you were tasked with analyzing a company, where would you start? What would you look at? How would you approach the process of determining the financial health of an organization and possibly identify items that need to be fixed within the operation?