suppose you are an auditor of a large multinational company. You notice that therehave been large fluctuations in this company's PPE for the past five years, as follows:2016: PPE is $150 million2017: PPE is $320 million2018: PPE is $175 million2019: PPE is $100 million2020: PPE is $250 millionPlease describe some concerns that you might have for the company.In a response post, now pretend you are the CEO of the multinational company. Pleaseaddress the concerns raised in another student's initial post, and provide some reasonsfor the large fluctuations in PPE that would not alarm your auditor and investors.

PPE-Property, plant, and equipment is termed under long term assets held by the businesses which…

Please describe some concerns that you might have for the company. In a response post, now pretend you are the CEO of the multinational company. Please address the concerns raised in another student's initial post, and provide some reasons for the large fluctuations in PPE that would not alarm your auditor and investors.

Please describe some concerns that you might have for the company. In a response post, now pretend you are the CEO of the multinational company. Please address the concerns raised in another student's initial post, and provide some reasons for the large fluctuations in PPE that would not alarm your auditor and investors.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and…

A: Auditing is the process of checking the accuracy and reliability of financial accounts. The auditing…

Q: hat are some of the ethical concerns that come to mind for companies seeking to sell to the bottom…

A: Ethical Issues: Ethical issues in business arise when a moral conflict arises and must be resolved.…

Q: keep confidentiality

A: Revealing the confidential information of previous company's client base to the new employer is…

Q: Suppose that a company called Futuristics, Inc hires you to work in Supply Cha Management. Your new…

A: 4. Activity-based costing could better show us how much it really costs to serve Surfers,…

Q: Imagine you are starting the firm with your Team and you are all college seniors with limited work…

A: A Passionate and Agile Team for [Company Name] Building for Success While our team may be young, we…

Q: 1.New CEO is quite domineering and dictates accounting issues. Answer the following question a.ls…

A: Since you have asked multiple sub parts, we will solve the first three sub parts for you. If you…

Q: mpany to form. She is trying to decide between a corporation, an LLC, or a sole proprietorship.…

A: A person can start a business with the set up of a limited liability company (LLC) or a corporation…

Q: Accenture (which spun off of former accounting firm Author Anderson) wrote an article entitled "Meet…

A: The emergence of new business models and technologies is transforming the way companies operate and…

Q: My own business experience supports this statement. By the time individuals have a few years of…

A: The question is related to the Marginal Costing. The detailed Income Statement is given for the…

Q: Explain the role of the risk manager in fraud detection ?

A: Fraud detection refers to a series of operations aimed at preventing money or property from being…

Q: In a Private Placement, the PPM stands for Primary Price Mandate Pre-emptive Price Monitoring…

A: The private placement is the sale of shares of the private company to the pre-selected investors.…

Q: Explain the ‘audit expectation gap’. What causes the gap?

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: What have you learnt in the BUS 505 course relating to financial accounting? How you can contribute…

A: BUS is the acronym for business units. There are different types of business units which require…

Q: Imagine that you are the new department manager of a corporation within your chosen field: you…

A: Audit: Auditing is the systematic verification of the books of accounts and the voucher documents to…

Q: How would you know if all the necessary disclosures were prepared and contained correct information?

A: Introduction: Accounting policy: Accounting policy can be defined as the rules, regulations and…

Q: Assume that you work for a Fortune 500 level company at corporate headquarters. Due to your…

A: 1. Using job costing or process costing method depends upon the various parameters which helps in…

Q: An accounting firm creates financial statements for a large company. The accounting firm is creating…

A: IPO stands for Initial public offer. This is where a public company decides to have capital from the…

Q: Discuss what is meant when a company takes a “big bath.” In addition, provide an example of “big…

A: Big Bath-The practice of showing poor earnings of a company more worse than they actually are.

Q: ou must negotiate virtually with a vendor in another country. The client relationship is sensitive…

A: Explanation : To negotiate virtually with a vendor in another country it’s better to choose email as…

Concept explainers

Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.

Question

suppose you are an auditor of a large multinational company. You notice that there
have been large fluctuations in this company's PPE for the past five years, as follows:
2016: PPE is $150 million
2017: PPE is $320 million
2018: PPE is $175 million
2019: PPE is $100 million
2020: PPE is $250 million
Please describe some concerns that you might have for the company.
In a response post, now pretend you are the CEO of the multinational company. Please
address the concerns raised in another student's initial post, and provide some reasons
for the large fluctuations in PPE that would not alarm your auditor and investors.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

I need answewr for questions below : Chapter 1: 3. The scribes of ancient Egypt were the forerunners of today's accountants. a. True b. False 13. Arthur Andersen created a CPA firm that eventually disappeared. a. True b. False 21. Forensic‐type fieldwork refers to an attitudinal shift in an auditor's degree of skepticism. a. True b. False 22. Consulting standards may apply to a forensic accountant. a. True b. False 23. Peremptory refers to the fact that a forensic accountant can be proactive. a. True b. False 24. A forensic audit is generally a sampling activity. a. True b. False 27. The smoking gun to convict Al Capone was a cash receipts journal with Capone's name on it. a. True b. False 29. Plagiarism is considered to be fraud. a. True b. False 30. A forensic accountant uses interviews and leveraging techniques designed to elicit sufficient information to prove or disapprove a hypothesis. a. True b. False Page 1 of 44 31. A forensic accountant does not search public…
You need to go the office of DTI if you will register your corporation. true or false? Registering your business trade name is done in the office of SEC C. Mayor’s Office DTI D. Philhealth Office Which of the following is not a benefit of record keeping? It will not help in managing potential risks. It will measure profit and performance. It will protect the rights of the owner. It will not let you know how much you are earning.
1. Would an auditing-standard convergence prevent fraud at the top-executive level? If No, how to deter top executives from engaging in illegal conduct? 2. As an accounting professional, what can you do better than a machine or artificial intelligence? If accounting and auditing standards are 100% rules-based without any judgment, would there be more or less accounting jobs for us?
Shining Glass is switching to a new accounting information system. To expedite the implementation, the managing director asked your consulting team to postpone establishing standards and controls until after the system is fully operational. What will be your response to the managing director’s request? Explain.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You are a CPA and you are the CFO (Chief Financial Officer) of USB Computer Technologies Inc., a company that specializes in customized business software. You have been requested by the board of directors of the company to attend its meeting. During the meeting, one of the directors asked you, "Why audits of our company performed by different auditors (internal, external, government). Before you could answer question, another direfctor mentioned "it would be more cost-efficient if our internal auditors will performed all the audits. " Requirements. Write down your reply to each question of the members of the board of directors. In relation to your answer in number 1, identify the issues that must be explained to the Board.