The Nanjo Van(NV) Sdn Bhd is a private limited company incorporated in Malaysia. Starting its business in the last 5 years, NV already employs 70 dispatch staffs for delivery services. The company currently owns 15 vans and 20 motorcycles, some were purchased new, and some were acquired second-hand.

Since the pandemic of Covid-19 early 2020, the company suffers from inadequate resources as many trading companies now need transport facilities to sell their products. The company then decides to lease 10 more vans from a lessor in town under a 15-year leasehold agreement. This lease comes with purchase option at huge discounted price and most likely the company will buy the vehicles at the end of the lease term.

Full details of all vehicles owned by the company are maintained in a non-current asset register. But the leasehold vehicles are only recorded in the form of their monthly rentals in expense.

Required:

1. Identify the four (4) most important assertions for the audit of the vehicles owned by Nanjo Van(NV) Sdn Bhd. For each assertion, suggest the most appropriate substantive audit evidence you would gather and evaluate in addressing each assertion.

(10 Marks)

2. List and describe two (2) audit work you should perform on the 10 vehicles which are leased from the lessor in town.

(5 Marks)                      

(Total: 15 Marks)

Problem 14-5 Issuer and investor; effective interest; amortization schedule; adjusting entries [LO14-2]

On February 1, 2018, Cromley Motor Products issued 10% bonds, dated February 1, with a face amount of $60 million. The bonds mature on January 31, 2022 (4 years). The market yield for bonds of similar risk and maturity was 12%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $60,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Determine the price of the bonds issued on February 1, 2018.
2-a. Prepare amortization schedules that indicate Cromley’s effective interest expense for each interest period during the term to maturity.
2-b. Prepare amortization schedules that indicate Barnwell’s effective interest revenue for each interest period during the term to maturity.
3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell’s investment on February 1, 2018.
4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020.

Design your own experiment to demonstrate the probability of states using objects of your choice. Use Probability of States as a guide for experimental design.

1. Han Industries Inc. constructed a building and acquired five assets during the current year.

Construction of Building: Han constructed a building on land that it purchased last year at a cost of $240,000. Construction began on March 1 and was completed on October 1. The payments to the contractor were as follows.

Date          Payment

March 1 $360,000

July 1        275,000

October 1 325,000

Han obtained a $700,000, 8% construction loan on March 1. Han repaid the loan on October 1. Han had $400,000 of other outstanding debt during the year at a borrowing rate of 9%.

Asset 1: Han acquired office furniture by making a $7,500 down payment and issuing a $10,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $5,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $16,200.

Asset 2: Han acquired manufacturing equipment by trading in used manufacturing equipment. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows.

Cost of equipment traded in                    $52,000

Accumulated depreciation on equipment

Asset 3: Four computers were acquired by issuing 500 shares of $1 par value common stock. The stock had a market price of $12 per share.

Assets 4 and 5: Han purchased these assets together for a lump sum of $230,000 cash. The following information was gathered.

Initial Cost onDepreciation to Date onBook Value on

DescriptionSeller's Books            Seller's Books            Seller's BooksAppraised Value

Instructions

Record the acquisition of each of these assets.

Create: A systems approach to the reduction of medication error on the hospital

Here is an example:

A systems approach to the reduction of medication error on the hospital ward Aims. To discuss a potentially powerful approach to safer medication administration on the hospital ward, based on principles of safety developed in other high-risk industries, and consistent with recent national reports on safety in health care released in the United Kingdom (UK) and United States of America (USA). To discuss why punitive approaches to safety on the hospital ward and in the nursing literature do not work. Background. Drug administration error on the hospital ward is an ever-present problem and its occurrence is too frequent. Administering medication is probably the highest-risk task a nurse can perform, and accidents can lead to devastating consequences for the patient and for the nurse’s career. Drug errors in nursing are often dealt with by unsystematic, punitive, and ineffective means, with little knowledge of the factors influencing error generation. Typically, individual nurses are simply blamed for their carelessness. By focusing on the individual, the complete set of contributing factors cannot be known. Instead, vain attempts will be made to change human behaviour – one of the most change-resistant aspects of any system. A punitive, person-centred approach therefore, severely hampers effective improvements in safety. By contrast, in other high-risk industries, such as aviation and nuclear power, the systems-centred approach to error reduction is routine. Conclusions. Accidents or errors are only the tip of the incident iceberg. Through effective, nonpunitive incident reporting, which includes reports of near-misses and system problems in addition to actual accidents, the systems-approach allows the complete set of contributing factors underlying an accident to be understood and addressed. Feedback to participants and targeted improvement in the workplace is also important to demonstrate that incident data are being used appropriately, and to maintain high levels of on-going reporting and enthusiasm for the scheme. Drug administration error is a serious problem, which warrants a well-reasoned approach to its improvement

How has China corrupted manufacturing in the United Sates?

U.S. Financial Contributions to the United Nations: Is It Fair for America?

Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not.

• Consider New York state, does it exclude necessities, why or why not?
• As with all things, one decision can lead to another. Once necessities are excluded, “necessities” must be defined. Research the tax definition of “necessity” in New York (or another if your state does not exclude) and evaluate it.