CONFIDENTTAL ACC 3573 (c) Each of the following situations could have possible violations of the fundamental principles as stated in MIA By-Laws. For each of the following situation state which fundamental principle has been violated and explain the nature of the violation. i. Rosdi Associates, an audit firm has assigned Amir who has over 10 years of experience in auditing information technology base companies to involve in the audit of a new client company, an asset management company. ii. During a company lunch, Ubai openly shared his audit client's salary information with his friends who are not even in the audit engagement team. iii. Maznah is an accountant in charge of preparing financial statements for Norman Inc. Maznah asks for Norman's records to support its payables and receivables, but Norman says it will be too much work to get. Norman says to go with the numbers in the accounting system iv. Due to the overwhelming workload, Ruhaila, Sentosa Holdings' auditor, did not perform the bank confirmation procedures and immediately conclude that there is no further issue with the bank account balance. \( [8 \) marks]
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The fundamental principle that could be violated here is Professional Competence and Due Care. Amir, despite his extensive experience in auditing IT-based companies, may not have the necessary expertise to audit an asset management company. The nature of the Show more…
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Cash budgeting, budgeted balance sheet (Continuation of 6 -42) (Appendix) Refer to the information in Problem $6-42$ Budgeted balances at January 31,2018 are as follows: Customer invoices are payable within 30 days. From past experience, Skulas's accountant projects $40 \%$ of invoices will be collected in the month invoiced, and $60 \%$ will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with $50 \%$ of direct materials purchases paid during the month of the purchase, and $50 \%$ paid in the month following purchase. Fixed manufacturing overhead costs include $ 64,000$ of depreciation costs and fixed nonmanufacturing overhead costs include $ 10,000$ of depreciation costs. Direct manufacturing labor and the remaining manufacturing and nonmanufacturing overhead costs are paid monthly. All property, plant, and equipment acquired during January 2018 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2018 On December $15,2017,$ Skulas's board of directors voted to pay a $ 160,000$ dividend to stockholders on January 31,2018 1. Prepare a cash budget for January $2018 .$ Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and nonmanufacturing overhead. 2. Skulas is interested in maintaining a minimum cash balance of $ 120,000$ at the end of each month. Will Skulas be in a position to pay the $ 160,000$ dividend on January $31 ?$ 3. Why do Skulas's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? 4. Prepare a budgeted balance sheet for January 31,2018 by calculating the January 31,2018 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity.
In each of the following cases involving taxes, explain: (i) whether the incidence of the tax falls more heavily on consumers or producers, (ii) why government revenue raised from the tax is not a good indicator of the true cost of the tax, and (iii) how deadweight loss arises as a result of the tax. a. The government imposes an excise tax on the sale of all college textbooks. Before the tax was imposed, 1 million textbooks were sold every year at a price of \$50. After the tax is imposed, 600,000 books are sold yearly; students pay $\$ 55$ per book, $\$ 30$ of which publishers receive. b. The government imposes an excise tax on the sale of all airline tickets. Before the tax was imposed, 3 million airline tickets were sold every year at a price of $\$ 500$. After the tax is imposed, 1.5 million tickets are sold yearly; travelers pay $\$ 550$ per ticket, $\$ 450$ of which the airlines receive. c. The government imposes an excise tax on the sale of all toothbrushes. Before the tax, 2 million toothbrushes were sold every year at a price of $\$ 1.50$. After the tax is imposed, 800,000 toothbrushes are sold every year; consumers pay $\$ 2$ per toothbrush, $\$ 1.25$ of which producers receive.
Several years ago, two companies merged. One of the concerns after the merger was the increasing burden of retirement expenditures. An effort was made to encourage employees to participate in the 401(k) accounts. Nationwide, 64% of eligible workers participated in these accounts. The accompanying data table contains responses of 30 employees of the company when asked if they were currently participating in a 401(k) account. Complete parts a through d. The data is: Yes No Yes No Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes Yes No No Yes Yes Yes Yes No Yes No Yes No Yes Yes a. Determine the sample proportion of company workers who participate in 401(k) accounts. The sample proportion is ????. (Round to three decimal places as needed.) b. Determine the sampling error if in reality the company workers have the same proportion of participants in 401(k) accounts as does the rest of the nation. The error is?????. (Round to three decimal places as needed.) c. Determine the probability that a sample proportion at least as large as that obtained in the sample would be obtained if the company's workers have the same proportion of participants in the 401(k) accounts as does the rest of the nation. The probability is ????. (Round to four decimal places as needed.) d. Does it appear that a larger proportion of company workers participate in 401(k) accounts than do the workers of the nation as a whole? Support your response. (No, or Yes) because there is a ?????% chance of obtaining a sample proportion greater than the one calculated in part a if the population proportion is 64%.
Sheryl E.
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