The risk management of Societe General took measures to close a trader's open position within three trading days. After having closed the position the bank published the news that a trader caused a loss og 5 billion EUR. 1. Briefly explain why the news was not disclosed on the day of detection but three days later.

The risk management of Societe General took measures to close a trader's open position within three trading days. After having closed the position the bank published the news that a trader caused a loss og 5 billion EUR. 1. Briefly explain why the news was not disclosed on the day of detection but three days later.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The June disbursements of Lovely Company shows a total of P2,566,400. The following errors, however, were discovered relating to two checks issued by the company and cleared by the bank during the month of June.*Check #12345 was drawn for P32,300 but was erroneously recorded as P23,300.*Check #12543 was drawn for P20,000 but was erroneously recorded as P2,000. How much is the correct disbursements per books?
None
Fred's Supply's month end bank statement shows a balance of $32,000. Outstanding checks were $10,000, and the $5,000 deposit on the last day of the month is not yet shown on the bank statement since it was made after 4 p.m. Bank service fees of $35 and a returned check (NSF) of $49 were shown on the statement are not yet recorded on the books. What is the correct (reconciled) month-end cash amount? Respond in a whole number, no commas and no dollar signs.
The Cash account of ReeseCorporation had a balance of $3,540 at October 31, 2018. Included were outstanding checkstotaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement.The bank statement, which came from Turnstone State Bank, listed an October 31 balance of$5,570. Included in the bank balance was an October 30 collection of $600 on account froma customer who pays the bank directly. The bank statement also showed a $30 service charge,$10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50.Prepare a bank reconciliation to determine how much cash Reese actually had at October 31.
You are the audit senior working on the audit of Tesco Ltd for the year ended 30 June 2020. While completing your risk assessment of Tesco, you note that the company appears to have a significant debt-recovery problem. The majority of Tesco’s accounts receivable are outstanding for more than 60 days. Tesco’s provision for doubtful debts is currently calculated at 1 per cent of accounts receivable at month-end. In the previous two financial years, Tesco wrote off $380 000 and $425 000 worth of accounts receivable, respectively. In those years, sales were $3 500 000 and $5 650 000, respectively. REQUIRED: (A) Identify the two key assertions most at risk of material misstatement in relation to accounts receivable and provide explanation why each of these assertions is at risk. (B) Describe the substantive procedures you will perform at year end to obtain sufficient audit evidence for each assertion identified in (A).
A company’s draft financial statements for 2021 showed a profit of $630,000. However, the trial balance did not agree, and a suspense account appeared in the company’s financial statements.Subsequent checking revealed the following errors:1 The cost of an item of plant $48,000 had been entered in the cash book and in the plant account as $4,800.2 Bank charges of $440 appeared in the bank statement in December 2021 but had not been entered in the company’s records.3 One of the directors paid $800 due to a supplier in the company’s payables ledger by a personal cheque. The bookkeeper recorded a debit in the supplier’s ledger account but did not complete the double entry for the transaction.4 The payments side of the cash book had been understated by $10,000. Which of the above items would require an entry to the suspense account in correcting them? What would the company’s profit become after the correction of the above errors?
Epsilon Corporation has unadjusted cash in bank balances of P1,000,000 and P900,000 at the beginning and end of the month, respectively. Book debits totaled P1,800,000. An analysis with recent bank statements showed deposits in transit of P350,000 at the start of the month, deposits in transit of P220,000 at the end of the month, outstanding checks of P80,000 at the beginning of the month, and outstanding checks of P70,000 at the end of the month. Credit memos were P200,000 last month while it is P50,000 for this month. Bank service charge totaled P30,000 last month. A P120,000 customer check deposited this month was returned by the bank due to insufficient fund. How much is the unadjusted total bank credit for the month?
On Dec 31, 20A, the bank statement on ABC company has an ending balance of 747,000. The ff data were assembled in the course of reconciling the bank balance: -The bank erroneously credited ABC company for 4,200 on Dec 23 -During the month, the bank charged back NSF checks amounting to 4,600 of which 1,600 had been redeposited by Dec 27. -Collection for Dec 31 totaling 20,600 was deposited on Jan 2, 20B -Checks outstanding on Dec 31 amounted to 60,400 Note collected by the bank for ABC company was 16,000 and the corresponding bank charge was 1,000. What is the unadjusted cash in bank per ledger on Dec 31, 20A?
During the month of July, Clanton Industries issued a check in the amount of $756 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:

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