Dell Company, a CPA firm, conducted an audit for the 2020 financial statements of Perla Corporation. During the course of the audit, the auditors noticed that the management had a known history of violations. This condition that might increase the risk of fraudulent financial reporting is related to the following category: * Management's characteristics and influence
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- 7 In June 2005, IESBA issued a revised Code of Ethics for Professional Accountants. What does the term IESBA stands for? a. Internal Ethics Standards Board for Auditor b. Institutional Ethics Standards Board for Auditor c. Integrity and Ethics Standards Board for Accountants d. International Ethics Standards Board for Accountants Clear my choiceHow can the Asset and Liability Management Committee can proactively manage the liquidityrisk faced by the groupYou work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales…
- 1. Borrowing costs can be capitalized as part of the asset when (a) They are a qualifying asset and the entity has opted for the benchmark treatment under IAS 23. (b) They are a qualifying asset; the entity has opted for the allowed alternative treatment under IAS 23, but it is not probable that they will result in future economic benefits to the entity. (c) They are a qualifying asset; the entity has opted for the allowed alternative treatment under IAS 23, and it is probable that they will result in future economic benefits to the entity, but the costs cannot be measured reliably. (d) They are a qualifying asset; the entity has opted for the allowed alternative treatment under IAS 23, and it is probable that they will result in future economic benefits to the entity, but the costs cannot be measured reliably. 2. Which of the following may not be considered a "qualifying asset" under IAS 23? (a) A power generation plant that normally takes two years to construct. (b) An expensive…Explain the importance of financial statements in a given enterprise.Governance, Risk Management, and Control are interrelated terms. As an internal auditor whose primary task is to evaluate Governance, Risk Management, and Control, you must understand how these concepts interrelate with each other. Name one company (which can be a publicly listed, public company, registered issuer, non-stock, non-profit corporation, partnership, sole proprietor, and yes, even the sari-sari store of your neighbor), and illustrate the inter-relationship of Governance, Risk Management, and Control in your chosen company. Moreover, you may opt to design a simple one-line audit plan how will you evaluate the Governance, Risk Management, and Control of your chosen company.
- Read the Wall Street Journal article, "Boeing Board Accused in Lawsuit of Lax Oversight During 737 MAX Crisis." This lawsuit is a great example of "shareholder activism." Boeing's shareholders took action when they felt the management failed to maximize their long-term value, and the board of directors failed to fulfill its fiduciary obligation to protect the interests of the shareholders. Respond to the following questions based on theories and concepts in Chapter 9. Q3-1. What are the role and duties of the broad of directors in corporate governance? Assuming Boeing shareholders' complaints are true in this lawsuit, in what ways did Boeing's board fail to fulfill its fiduciary duties to the shareholders? Q3-2. Assuming the shareholders' complaints are true, what are some likely reasons that Boeing's board failed to effectively fulfill its duties? Q3-3. We learned in Chapter 9 the importance of making sure the management acts in the best interests of shareholders. After reading the…The article is on the Olympus A scandal Description Describe the main issue in this case as well as the main players and their role Analysis What are the main issues in this case that have led to the collapse of Olympus? Discuss each issue and clearly explain how it contributed. Remember to include accounting-related shenanigans used by managers. Options/Alternatives What options did Woodford have? Prescriptions/Recommendations What recommendations would you make for the company, the accounting profession, and the government? Actions What action/s would you want the company, the accounting profession, and the government and other relevant bodies to take immediately?A CEO has placed you in charge of a new investment opportunity to borrow $5 billion dollars to create a new subsidiary of MCI called MillerCare Insurance. Estimates indicate that in seven years, MillerCare Insurance and its assets will be valued at $8 billion. The best offer for the loan sits at 12 percent. Mr. Miller instructed you to provide guidance to the new insurance firm, if indeed you decide to accept the loan package. How might you advise the top management of the insurance firm in regard to: How the Law of Diminishing Returns impacts the insurance market The dangers of Moral hazard Adverse selection
- Dolla going Ultra Microfinancier launches new business geared towards wealthy DOLLA Financial Services Limited will be launching its newest subsidiary, Ultra Financier Limited, on November 1 to be led by CEO David Henriques. The company was incorporated on August 3, according to the Companies Office of Jamaica records, but only received approval for its formation by its board of directors recently. The subsidiary will be injected with $350 million from Dolla's upsized $1.5-billion secured corporate notes (bond). Dolla is the sole shareholder with 1 million ordinary shares, with Dolla Chairman Ryan-Kwesi Reid, Dolla CEO Kadeen Mairs, Dolla Chief Financial Officer Trevene McKenzie, First Rock Private Equity (FRPE) Managing Director Christopher Yeung and Henriques as directors. "Ultra is going to be lending to high net worth (HNW) individuals. We'll lend between $1 million to $100 million per person and we take luxury assets, prime investments, and properties as collateral. A person can…explain the differences between financial and management accounting. give an example of how management accounting reports would be incorporated into financial accounting reports. describe how accounting information helps shareholders and lenders to make decisions concerning the operations and performance of the entity. explain what challenges face business in relation to ethical behaviour? and if such challenges are the same for accountants.How can it be determined if the company has sufficient short-term assets to meet its short-term debts? a. Inquire with the accountant, though regrettably, thay are on sick leave b. Comparing Current Assets with Current Liabilities c. Assess if there is adequate margin