The directors also advised the financial accountant to make a provision for:         (i)   bad and doubtful debts of $30,000;         (ii)  annual leave and long service leave of $60,000. The company directors come to you as the taxation adviser of the company and wish to know how each of the items mentioned above are to be treated for taxation purposes.

Petroleum, Inc. is in need of tax consulting services and wants to engage an accounting firm to perform these services on its behalf. The following events have occurred: On December 1, Petroleum, Inc., sent Brick, Waterhouse, & Co. (BW&C) a letter, via overnight delivery, offering to engage BW&C to review Petroleum’s tax situation for the current year for $10,000. In the letter, the company stated that BW&C had ten days to accept. On December 5, BW&C sent an e-mail message that stated, “The price for the tax analysis seems too low. We remain interested in the engagement. Would you consider paying $15,000?” Petroleum received the message without responding immediately. The next day, Smith & Taylor, a BW&C competitor, offered to conduct the tax services for $8,000. On learning of this offer, BW&C immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why BW&C and Petroleum do, or do…

For a publicly owned company, indicate which of the fol-lowing accounting activities are likely to occur at or shortly after year-end. (More than one answer may be correct.)a. Preparation of income tax returns.b. Adjusting and closing of the accounts.c. Drafting of disclosures that accompany the fi nancialstatements.d. An audit of the fi nancial statements by an independentCPA fi rm.

Which of the following users of accounting verifies accounting information to check the Tax compliance by the companies? a. Tax authority b. Regulatory agencies c. Management d. Creditors

The newly qualified accountant of Parmesan Limited is busy finalizing the financial statements of the company for the year ended 28 February 2019. Unfortunately, the accountant only remembers a few statements stated by his university lecturer as the venue in which the lecture took place was newly painted and he felt that watching the paint dry was likely to be more exciting than listening to an accounting lecture. He only remembered the following three statements: 1) The objective of IAS 12 is to account for current and future tax consequences of the recovery of assets and liabilities in the statement of Financial Position. 2) The tax base of an asset is: ·        The amount that will be deductible for tax purposes against any taxable economic benefits that will flow to entity when it recovers the carrying amount of the asset. ·        If those economic benefits will not be taxable, the tax base of the asset is equal to its carrying amount. 3) The tax base of liability is: ·…

You are the auditor and are planning the audit for the financial year ending 30 June 2019. In the audit of personnel expenses account, the amount presented on the financial statement is $12,000,000. Client’s profit after tax is $4,000,000. You determine that misstatements on the financial statement level below 7% of profit after tax will be considered immaterial. Calculate the overall materiality. Does this level of materiality apply to the personnel expenses account?

Which of the following professional services would be considered an attestationengagement?(1) Advocating on behalf of a client about trust tax matters under review by theInternal Revenue Service.(2) Providing financial analysis, planning, and capital acquisition services as apart-time, in-house controller.(3) Advising management in the selection of a computer system to meet business needs.(4) Preparing the income statement and balance sheet for one year in the future basedon client expectations and predictions.

What is the primary purpose of financial accounting? A) To control the spending of a company B) To manage employee payrolls C) To provide financial information to external users for decision-making D) To calculate the company's tax liabilities

Collect the latest annual report of ASX company for the last 2 financial years. Please read the financial statements (balance sheet, income statement, cash flow statement) and notes attached to financial statements on income tax issues very carefully. Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded.

Suppose an auditor has been paid $1,000,000 each year for the past several years by a company to perform the audit of its annual financial statements. This company is the auditor’s largest client. In the current year, the auditor notices that the preliminary income statement excludes certain expenses that typically are shown. When asked, management tells the auditor that these expenses do not reflect the company’s true performance, so they will not be shown in this year’s income statement. Plus, management informs the auditor that it will be paying $1,200,000 for this year’s audit, and management commits to using the auditor for at least five more years. Required: 1. Understand the reporting effect: Does the audit arrangement described above have the potential to jeopardize the auditor’s opinion of management’s decision not to report certain expenses? 2. Specify the options: Are auditors employees of the company who must accept requests of management? 3. Identify the impact: Do…