Consider each of the following independent and material situations. In each case:

• the financial report date is 31 December 2019;

• the field work was completed on 12 February 2020;

• the directors declaration and the audit report were signed on 19 February 2020; and

• the completed financial report accompanied by the signed audit report were mailed to shareholders on 18 March 2020

A. You are an auditor pf PP Limited (PP), a company specialising in industrial property development. On 10 February 2020, you become aware that a major overseas investor has informed the management of PP of their intention to withdraw their investment in a proposed major development. On the basis of its discussions with the investor and previously pledged funds from them, PP has incurred substantial costs in feasibility studies, structural engineering reports and architectural plans. A significant portion of these costs has been capitalised. The management is dependent on finding a new investor to be able to meet these expenses and to continue with the project.

B. You are the auditor of XY Limited (XY), a manufacturing client. XY has plans to upgrade its manufacturing process and plans to finance this by a sale of property which is superfluous to its needs, situated next to its head office. The property has been subdivided for the purposes of the sale and placed on the market in December 2019. On 25 January 2020, the state government approved a plan for the construction of an express freeway. The plan will result in the appropriation of a portion of the property owned by XY and subdivided for the purpose of sale. Construction of the freeway will begin in late 2020. No estimate of the compensation payment is available.

C. You are an auditor of Q limited (Q), a major public company involved in the property development industry. Prior to signing your audit report you sought a letter of comfort from Q’s bankers that the bank would continue to support Q by providing finance over the coming year. The bank agrees that it would continue to provide finance. It was your view that without such support Q had severe cash flow problems and the financial report would need to be modified with respect to a going concern assumption. On 15 March 2020, the company’s bankers wrote to you advising that the company had breached its loan covenant with the bank in February 2020 and that the loan facility was now due and payable and would not be renewed.

D. You are the auditor of Turbo Limited (Turbo), a professional services client. On 15 January 2020, Turbo settled and paid a personal injury claim to a former employee as the result of an accident that occurred in September 2017. The company had not previously recorded a liability for the claim. E. You are the auditor of Charge Limited (Charge), an automobile parts manufacturer. On 2 February 2020, Charge agreed to purchase for cash the outstanding shares of Electronic Fuel Injection Limited. The acquisition is likely to double the sales volume of Charge.

Required: For each of the events A to E:

2. Determine whether additional audit evidence needs to be obtained. If so, describe the nature of the audit evidence to be obtained and the audit procedures used to obtain it.

Consider each of the following independent and material situations. In each case:

• the financial report date is 31 December 2019;

• the field work was completed on 12 February 2020;

• the directors declaration and the audit report were signed on 19 February 2020; and

• the completed financial report accompanied by the signed audit report were mailed to shareholders on 18 March 2020

A. You are an auditor pf PP Limited (PP), a company specialising in industrial property development. On 10 February 2020, you become aware that a major overseas investor has informed the management of PP of their intention to withdraw their investment in a proposed major development. On the basis of its discussions with the investor and previously pledged funds from them, PP has incurred substantial costs in feasibility studies, structural engineering reports and architectural plans. A significant portion of these costs has been capitalised. The management is dependent on finding a new investor to be able to meet these expenses and to continue with the project.

B. You are the auditor of XY Limited (XY), a manufacturing client. XY has plans to upgrade its manufacturing process and plans to finance this by a sale of property which is superfluous to its needs, situated next to its head office. The property has been subdivided for the purposes of the sale and placed on the market in December 2019. On 25 January 2020, the state government approved a plan for the construction of an express freeway. The plan will result in the appropriation of a portion of the property owned by XY and subdivided for the purpose of sale. Construction of the freeway will begin in late 2020. No estimate of the compensation payment is available.

C. You are an auditor of Q limited (Q), a major public company involved in the property development industry. Prior to signing your audit report you sought a letter of comfort from Q’s bankers that the bank would continue to support Q by providing finance over the coming year. The bank agrees that it would continue to provide finance. It was your view that without such support Q had severe cash flow problems and the financial report would need to be modified with respect to a going concern assumption. On 15 March 2020, the company’s bankers wrote to you advising that the company had breached its loan covenant with the bank in February 2020 and that the loan facility was now due and payable and would not be renewed.

D. You are the auditor of Turbo Limited (Turbo), a professional services client. On 15 January 2020, Turbo settled and paid a personal injury claim to a former employee as the result of an accident that occurred in September 2017. The company had not previously recorded a liability for the claim. E. You are the auditor of Charge Limited (Charge), an automobile parts manufacturer. On 2 February 2020, Charge agreed to purchase for cash the outstanding shares of Electronic Fuel Injection Limited. The acquisition is likely to double the sales volume of Charge.

Required: For each of the events A to E:

3. If no action is taken by management, determine the most appropriate audit report to be issued.

7. According the critical theory perspective, the main cause of the abuses by MCN’s lies in which of the following?

A. The lagging technological level of developing countries

B. the corrupt local government protect the interest of the MCN’s

C. The greedy owners/capitalists of the MCN’s do not care

D. The global system itself is exploitive

8. Which of the following is the critical theory’s understanding of Western development?

A. Modernization normally means Westemization

B. Other countries cannot develop like Western countries because geography and demography appear to favor the Western countries

C. It is not a product of Western ideas, institutions, and competition, but rather a consequence of the systematic exploitation of other countries.

D. Other countries have to implement the Western rules and institutions of specialization

9. Which of the following is NOT one of the reasons that the realist perspective attributes for the ascendance of Europe?

A. Europeans have a unique religion

B. European population grew vigorously which made the Europeans to explore more space to grow grain and raise animals.

C. Europe had a large choice of wild plants and animals available for domestication.

D. Europe had the decentralized competition for “ships and firepower”

10. According to the world systems theory, a division of labor exists between different groups of states. Which of the following states produce most of the leading products, which enjoy an initial monopoly?

A. Semi-peripheral states

B. Core states

C. Developing states

D. Peripheral states

What amount of goodwill did Hershey recognize in the combination? Prepare a schedule that computes the goodwill recognized in the acquisition as the difference between the consideration transferred for Amplify and the fair values of the individually identified assets and liabilities acquired.

Thoughts on Bankruptcy Law? Is it appropriate to have a legal mechanism in place whereby legally acquired debt is able to be eliminated through the legal process? What are the pros and cons of this concept from the standpoint of the creditor and the debtor?

It's not unusual for one company to buy another company in order to obtain technology that the acquired company has developed or is in the process of developing.

Required: Explain the accounting treatment of purchased technology.

At least 350 words

How could Marie have acquired herpes? (Hint: there are multiple possibilities). 3. What can Marie do to cope with her current outbreak? 4. How might she discuss this situation with Christina?

Da Vinci's Mona Lisa was assessed for insurance in 1962 and it was valued at around 110 million. If the CPI in 1962 was 28.152 and the CPI in September 2020 is 258.310. What is the value of the Mona Lisa in September 2020 dollars?

1. 3,096.70 million

2. 1,009.32 million

3. 660.00 million

4. 11.99 million