Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question 1.
Why would the courts want to limit the ability of third parties to sue auditors who have been negligent? Are there any arguments that this liability should not be limited?
Question 2.
A. Explain the impact that the Pacific Acceptance case had on existing auditing practice.
B. List four of the procedures or practices that were identified in the ruling as being part of a competent audit.
Question 3.
Match the case with the ruling:
Cases: Rulings:
Caparo Industries Pty Ltd v. Dickman
Duty of Care owed to third parties in the absence of a contract where the plaintiff has suffered physical injury
Kingston Cotton Mill Co.
The standards for an auditor's level of skill and care are more exacting today than in 1896
Segenhoe Ltd v. Akins & Ors
Third party liability for auditors under the tort of negligence
AWA Ltd v. Daniels
An auditor's duty of care is owed to shareholders as a group, not to individual shareholders
Donoghue v. Stevenson
An auditor is a watchdog, but not a bloodhound
Twomax Ltd v. Dickson, McFarlane & Robinson
Contributory negligence
Pacific Acceptance Corporation Ltd v. Forsyth
Auditors are liable for any dividends paid out of capital due to auditor negligence
Prepare a common-size income statement and balance sheet for McDonough Products. The first column of each statement should present McDonough Products common-size statement, and the second column should show the industry averages.
Obtain an understanding of the company, its internal control, and its audit risk factors (including the risk of material misstatements due to fraud).
Jane O'Reilly is a staff accountant and earns $39,000 annually. She is married to Sid Metcalf, a full-time student at State University. Sid earned $1,200 from securities his grandmother had given him in 2007.
In audits of high-risk clients, determine which requirements in the AICPA's Code of Professional conduct are most likely to be breached by the auditors. Provide your rationale.
Identify the principles of internal control. Give an example of each principle. Are there any limitations to a sound internal control system?
Define lapping and give an example. What is a substantive test of transactions? How would it be applied to accounts receivable an inventory?
Recently John was approached by the board of Company Ltd with an offer of employment as a director starting in two years time. The only condition was that the audit fees have to be reduced for the current and next year's audit.
What is design management? Why is auditing used in design management? When should design auditing be used? Explain your answer
Discuss briefly the broad responsibilities of the aforementioned parties and conclude with a 500 word overview of the alleged corporate governance failures that surrounded most of the financial failures
These dividends are paid on 7/1/12. For period of 1/1/12 to 12/31/12 Company XYZ has a total loss of $650,000 and the market price of its shares is $12 per share.
Technological changes could have helped in this case. As technology continues to develop and evolve, companies must strengthen their controls.
Evaluate the child credit for the subsequent taxpayer and How much credit would they claim?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd