Matthew Damon has been appointed as a junior auditor of AwesomewaterhouseCoopers (AwC). One of his first tasks is to review the firm’s audit clients to ensure that independence requirements of APES 110 (Code of Ethics for Professional Accountants) are being met. His review has revealed the following:

(1) Jessica Parker is an assurance manager with AwC and it has just been decided to allocate her to the audit of Fresh Foods Limited (FFL). Jessica’s financially dependent daughter, Sarah, who is still in high school has recently used all her inheritance from her grandfather to buy a small parcel of shares in FFL.

Required:

Using the conceptual framework in APES 110 (Code of Ethics for Professional Accountants), identify potential threat(s) to independence & recommend safeguards (if any) to reduce the independence threat(s) identified. Also, provide an objective assessment of whether audit independence can be achieved.

Employees who receive a bi-weekly paycheck get paid __________ times per year.

You are the manager of Drive Thru Burger. You had only one applicant for the position of cashier during your daily dinner rush. However, Ms. Betty, who applied, is a retired elementary school crossing guard in her late 70's and you are afraid that she will not be able to efficiently move customers through the line during dinner rush. What legal precedent must you defer to?

Entry level employees are typically non-exempt, and are compensated based upon a(n) __________ wage. a. hourly b. annual c. minimum d. maximum

4. Indicate which variable is the independent and dependent for each pair. If either could be the independent, answer “reciprocal.” If the two variables do not seem related, answer “unrelated.”

a) Property inspections completed, number of inspectors

b) Property tax rate, property value

c) Consumption of ice cream in a month, average daily temperature in a month

d) Satisfaction with local services, voting in a local election

e) Work commute time, time of day

f) Merit pay, work productivity

g) Flu cases per capita, average age of population

h) Road miles constructed, number of commuters

i) Husband’s income, wife’s income

j) Visitors to a state park, visitors to a nearby national park

k) Season of the year, number of animals dropped at a shelter

l) Drop-out rate from high school, teenage pregnancy rate

m) Donations to a local ballet, Sales tax rate

Headquartered in Plainfield, Indiana is the Chimney Safety Institute of America which, among other things, certifies Chimney Sweeps. There are three steps to becoming certified: purchase (and study) $515 of books, attend an in-person or online review or six-day training school (each of which is several hundred to over a thousand dollars), and pass an exam (again, a few hundred dollars). After this, there is an annual $229 certification fee. The website says that being certified proves “you’re one of the best,” and that certification “is the measure of a chimney sweep’s knowledge about the evaluation and maintenance of chimney and venting systems.” Presumably, the CSIA would argue that its certification protects consumers; given the information presented this week, aside from ensuring high quality chimney sweeps, why else might existing chimney sweeps find it in their interest to protect the certification system? What side effects might the (one-time and annual) fees, training, and exam introduce into the chimney sweep market?

1.

For safety reasons, 3 different alarm systems were installed in the vault containing the safety deposit boxes at a Beverly Hills bank. Each of the 3 systems detects theft with a probability of 0.82 independently of the others. The bank, obviously, is interested in the probability that when a theft occurs,at least one of the 3 systems will detect it. What is the probability that when a theft occurs, at least oneof the 3 systems will detect it? Your answer should be rounded to 5 decimal places.

2.

An engineering school reports that 58% of its students were male (M), 39% of its students were between the ages of 18 and 20 (A), and that 32% were both male and between the ages of 18 and 20.

What is the probability of choosing a random student who is a female or between the ages of 18 and 20? Assume P(F) = P(not M).

Your answer should be given to two decimal places.

• First, are you a team player? Why or why not? How might you improve your ability to function well on an effective team?
• Second, consider a team you have been on at school, volunteering, or at work. Using concepts and vocabulary from our textbook, describe this team, its task and whether you found it to be effective. Explain why or why not? What went right, what went wrong? How might the team's effectiveness been improved?
• Third, comment on the Module 5 Video. Have you ever seen this team at work live? What works so well for them?
• Bonus, using terms from the textbook or outside (cited) research, describe some of the effects a stress-inducing, crisis situation (such as medical teams have faced and are facing during the spread of the current global pandemic) on a team, and identify what can help a team work well in the face of such difficulty and hardship.

Assuming in twenty years after graduating from ERAU you become extremely wealthy. You want to give back to your school and establish a scholarship endowment that will pay $200,000 per year in perpetuity to support ERAU students in need. Assume a conservative rate of return of 5% per year.

1. If the first payment will be made in one year after establishing the endowment, how much should you invest in it?

2. How much do you need to invest in the endowment if you want the first payment to be made in 6 years from establishing it?

3. In how many years your endowment will be depleted?

4. If you plan to save for this endowment (first payment in one year) over 15 year period and your expected personal rate of return is 12%, how much should you invest every year? Assume equal annual payments.

Indicate whether the individual volunteering to donate blood for homologous transfusion should be accepted or deferred.

A. Defer Temporarily        B. Defer for 6 Months    C. Defer Permanently           D. Accept E. Accept After Obtaining Medical Approval

20. _D._ A 65-year-old man whose birthday is tomorrow.
21. _A._ A 45-year-old woman who donated a unit during a holiday appeal 54 days ago.
22. _E._ A 50-year-old physician (Hgb 13.2 g/dL), who visited a country endemic for malaria but did not take prophylactic medicine.
23. _C._ A 25-year-old man who says he had yellow jaundice while in high school.
24. _A._ An 18-year-old with poison ivy on his hands and face.
25. _D._ A 77-year-old man
26. _E._ A 35-year-old runner (Pulse 46)

(Are these answers correct?)

Question1

With which of the following statements would most people in business agree? Rationalize your response

1. The short-run profits of a corporation will almost always increase if the firm takes actions the government has determined are in the nation's best interests.
2. Government agencies and firms almost always agree with one another regarding the restrictions that should be placed on hiring and firing employees.
3. Although people's moral characters are probably developed before, they get into a business school, it is still useful for business schools to cover ethics, including giving students an idea about the adverse consequences of unethical behavior to themselves, their firms, and the nation.
4. Developing a formal set of rules defining ethical and unethical behavior is not useful for a large corporation. Such rules generally can't be applied in many specific instances, so it is better to deal with ethical issues on a case-by-case basis.
5. Because of the courage it takes to blow the whistle, “whistle blowers’ are generally promoted more rapidly than other employees.