Consider the following independent situations relating to the audit of five different audit clients for year ended 30 June 20X8. Assume that all the situations are material.

1. A new client has changed its valuation method of property, plant and equipment. It has adopted the Fair Value Revaluation Model to replace the Historic cost measurement method. Whilst the auditor does not object to the change in the valuation model, the new method has a material effect on the financial statements and has not been disclosed. A special meeting was held between the CFO and the Finance Team and the Lead Partner from the Audit team, but nothing was resolved.

2. A new start-up company specialising in air-drone mail/package delivery has grown strongly in the past year. Over the past three years the company has made consistent losses, borrowed heavily, experienced staff turnover and dealt with some significant regulatory and operational issues. Nonetheless, the current CEO believes the company is turning around and will soon improve profitability. She is a high wealth individual who has invested more funds (equity) into the company, which is fully disclosed. No material misstatements were noted in the Auditor’s report.

3. The Auditors of ROME, a high-profile bank, were unable to obtain sufficient and appropriate audit evidence concerning the carrying amount of ROME’s investment in ITA Pty Ltd as at 30 June 20X8. ITA Pty Ltd is a small firm of five financial planners in total. The auditors were denied access to the financial information of ITA, and they were not allowed to interview ITA’s Management. Consequently, the auditors were unable to determine the correct valuation of ITA Pty Ltd.

4. The introduction of a new accounts receivable system in August 20X7 resulted in numerous errors in accounts receivable. As at the date of the Audit report, management was still in the process of correcting the system errors. As a result of these issues, the Auditors were unable to determine whether any adjustments are required in relation to the recorded or unrecorded inventories and accounts receivables, as well as the elements making up the Income statement and the Cash Flow statement.

For all the above clients, identify the type of audit opinion that should be issued and justify your response.

Write your answers in the table below:  

1. Consolidated Bargains, Inc. has a corporate policy of not allowing employees to use company email for private use.  Joe Bennett is a Consolidated employee who used email to communicate with his attorney asking whether Joe’s wife filed for divorce.  Joe knows that the company policy is that employee emails are randomly monitored to enforce this policy.  Joe’s employer read his email and also read the attorney’s response telling Joe that his wife indeed had filed for divorce.  Discuss whether you think the employer’s action is lawful or unlawful and why.  If unlawful, do you think Consolidated should receive a penalty?
2. Brownlee, Inc. manufactures and sells sports clothing and shoes in the United States.  Brownlee employs over 100 fourteen- and fifteen-year-old teenagers paying them an hourly wage of $7 per hour and allows them to work over 40 hours per week.  Discuss any legal issues you see in this situation.
3. Jack worked as a window cleaner for Tower Cleaning, Inc., which specialized in cleaning windows in high-rise apartments and skyscrapers. Tower cleaning has procedures in place located in the company employment manual that all employees must follow.  Among those procedures are safety checklists including wearing protective gear, harnessing while being lifted up high, communicating with the lift, making logs of malfunctioning equipment, etc.  Jack was scheduled to clean the windows of a skyscraper all the way up to the 20^th floor when he was injured because he dangled from side to side while being lifted. An investigation revealed that Jack was careless and did not follow the company’s procedure manual for properly harnessing before being lifted up high to clean windows. Jack has filed a claim under the state’s Workers’ Compensation. Tower Cleaning denies any liability because Jack was careless and disobeyed company policy.  Discuss any legal implications.   

4. Which of the following medical conditions do not qualify under the Americans with Disabilities Act of 1990?  Please briefly explain your answer for each item.

   a.   An individual born blind seeks employment as a telephone operator.

   b.   A factory worker lost two fingers in a workplace accident and the employer terminated his employment.  

Read the scenario and then answer the question that follows.

Recology CleanScapes, formed when CleanScapes of Seattle merged with San Francisco–based Recology, provides recycling services to about 800,000 residential and commercial customers in four western states. The employee-owned company’s motto is “WASTE ZERO,” and it is an industry leader in the waste reduction and recovery industry. Recology CleanScapes has credited much of its financial success, low employee turnover, and high customer satisfaction to open-book management.

If you were hired as a manager at Recology CleanScapes, which of the following would be parts of your job? Check all that apply.

1) Help employees think like owners, taking responsibility for the financial success of the company

2) Encourage employees to focus on their individual job performance and reward them for individual results

3) Share financial measures such as revenues, expenses, and profits with your employees

HIV is considered a chronic infectious disease. With access to health care and adherence to suggested HAART therapy, people are living normal lives through their late adulthood without AIDS progression. Let's talk a little bit about the rights and responsibilities of a person with a chronic communicable disease like HIV.

1) Currently, military applicants who test positive for HIV are excluded from participating in military service, regardless of the ability to perform. Would you consider this discrimination of a pre-existing condition?

2) Active duty military or reservists that test positive (they are tested biannually) are allowed to stay in the military, and only discharged when soldiers are physically deteriorated or cognitively inept. Recently, multiple men have been forcibly discharged from the military due to a positive HIV test, despite being asymptomatic, overall in 'good' physical and mental health, and adhering to HAART therapy. Do you think there is any rational argument to remove service men and women from duty if they are HIV positive? Is this a violation of the rights of the individuals?

3) What do you think of the scenario where an HIV infected individual is in a combat-zone, receives an injury, and potentially exposes his or her fellow soldiers to their blood during rescue efforts?

4) It is highly recommended that HIV positive pregnant females take HAART therapy throughout their pregnancy. HAART during pregnancy has proven highly efficacious in minimizing the transmission of HIV from mother to fetus throughout pregnancy and during birth. However, it is not legally required for a pregnant woman to take HAART therapy, even when the mother is provided HAART through government funding such as MassHealth. Should a DOTS-like program (remember from the TB lecture) be required for pregnant HIV females?

5)  Persons who inject drugs can substantially reduce their risk of getting and transmitting HIV, viral hepatitis and other blood-borne infections by using a sterile needle and syringe for every injection. In many jurisdictions, persons who inject drugs can access sterile needles and syringes through syringe services programs and through pharmacies without a prescription. However, a largely conservative population views these programs as a promotion of addict behavior. Do you agree with this sentiment? If yes, explain. If no, how can we change these views?

2019 Labor Data for Sparta

What is the current labor force participation rate rounded to the nearest tenth of a percent?

In six months, a cereal company plans to sell 30,000 boxes of “Corn Crisps” for $4.00 per box and will need to buy 15,000 bushels of corn to do so. In doing so, it also incurs non-corn costs of $38,000. The current spot price of corn is $5.10 per bushel, and the effective six-month interest rate is 3 percent. The company will hedge by selling a collar -- i.e., purchasing $5.30-strike call options at $0.37 per bushel and writing $4.90-strike put options at $0.23. What total profit would be earned if the market price of corn in six months is $4.50, $4.90, $5.30, and $5.70, respectively?

1. The goal of reporting realistic figures and never overstating assets or net income applies to the ________.

1. materiality concept
2. conservatism principle
3. disclosure principle
4. consistency principle

2. ABC Company earned revenues of $19,000 and incurred expenses of $4,000. The company declared and paid cash dividends of $1,500. What is the balance in the Income Summary account after closing net income or loss to the Retained Earnings account?

1. debit balance of $19,000
2. credit balance of $4,000
3. credit balance of $15,000
4. balance of $0

3. An invoice of $600 for merchandise purchased is showing 3/15, n/30 as terms of credit. If the invoice is paid on or before the fifteenth day, the amount to be paid is ________.

1. $582
2. $600
3. $618
4. $621

1.A company can choose one of two investment plans, A and B. Under plan A, it can invest $117604 at 6.7% p.a., compounded monthly. Under plan B, it can invest $x at 6.2% p.a., compounded continuously. If the company wants to have the same amount after two years using either plan, what is the value of x ?

(Give your answer correct to two decimal places.)

2.What is the extra amount of interest earned, if $3516 is invested for six years at 5.2% p.a. compounded monthly rather than for six years at 5.2% p.a. simple interest ?

(Give your answer to the nearest cent, omitting the dollar sign.)

Alana and Jose are married and claim 2 exemptions. Last year Alana earned $32,400 and Jose earned $28,600 in wages. Additional tax information for the year is as follows: Interest earned: $2,800; alimony paid: $5,900; contributions to IRA retirement fund: $2,300; state and local income taxes paid: $6,200; contributions to charity: $2,700. Find the taxable income if they file a joint return.

(ps. Standard Deduction in 2018 for MFJ or QW with dependent is $24,000; for S or MFS is $12,000; for HoH is $18,000)

Calculate interest on balances up to 30,000( 3.25% interest) and above 30,000(.25% interest). In this program, we prompt the user for the balance and output the dividends earned. (example a 10,000 deposit earning 1.15% would earn 10,000*1.15%=$115)

In this program we prompt the user for the anticipated balance and then output the dividends earned.

What formula would you create if you prompt the user for the balance and then display dividends earned?(you can use variable constants, if then statements.