Firm of chartered certified accountants

Assignment Help Cost Accounting
Reference no: EM13557846

1-You are a partner in a medium sized firm of chartered certified accountants. The following opportunities have arisen.

A major audit client, Lilac Co, is seeking loan finance from its bank to fund an expansion into a new factory. The expansion should result in an increase in capacity of 30%. Lilac has conducted market research and is confident that they will be able to sell the added output. The financial director has recently telephoned you and mentioned that the bank are keen to obtain a reference from the audit firm, relating to Lilac's ability to repay the loan and whether the business plan is reasonable. He said 'they just need their forms filled, for their files. They know we can repay. We're one of their best clients.' Your audit team is about to commence the audit for the year ended 31 March 20X8.

Required

Comment on the matters you would consider in relation to giving such a reference to the bank.

2- The finance director of Laurel Co, another audit client, telephoned you yesterday. He recently attended a half-day course on the importance of corporate governance run by your firm. Laurel's long term plans include the possibility of flotation on a stock exchange. The finance director has told the other directors the issues discussed at the course and they feel that it might be a good idea to engage the firm to undertake an assurance engagement to assess risk management and the internal control system at Laurel Co.

Required

Comment on the matters you would consider in relation to accepting and planning such an engagement.

Reference no: EM13557846

Questions Cloud

What is the fundamental source of an electromagnetic wave : This is a conceptual question, The fundamental source of asound wave is a vibrating object, what is the fundamental source of an electromagnetic wave
Explain the procedure for the avogadro''s number : Describe the procedure for the AVOGADRO'S NUMBER. This could be in an outline format or a flow chart format or paragraph format. It should not be copied directly from the manual
Total displacement of the car from its starting point : A car is driven east for a distance of 48km, then north for 32 km, and then in adirection 31°east of north for 25 km. Draw the vectordiagram and determine the total displacement of the car from itsstarting point.
Trouble remembering how to multiply the equations out : It has been a while since I had calculus so I am having trouble remembering how to multiply the equations out. Can anyone do a step - by - step process?
Firm of chartered certified accountants : Comment on the matters you would consider in relation to accepting and planning such an engagement - matters you would consider in relation to giving such a reference to the bank.
Evaluate how long does the ball take to reach the wall : You throw a ball with a speed of 25.0 m/s at an angle of 40.0degrees above the horizontal directly toward a wall. How long does the ball take to reach the wall
How the definition applies to a fraud investigation : Define a forensic audit and explain how the definition applies to a fraud investigation - compare the responsibilities of the auditor in respect of fraud when conducting a statutory audit and when conducting a forensic investigation
Estimate how long does the projectile remain in the air : A projectile is fired horizontally from a gun that is 45.0 mabove flat ground. The muzzle velocity is 250 m/s. How long does the projectile remain in the air
Explain conformers of 2- chloropentane : Draw Newman Projections to show the different conformers of 2- chloropentane, focusing on the C2-C3 bond. Show all six conformers.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Critically discuss major ethical issues raised by awb

Critically discuss the major ethical issues raised by the AWB scandal. You are required to make references to the unit materials and need to do scholar research to support your discussion.

  What factors complicate your ability to compare companies

Effectiveness of the two companies in using their assets to generate sales. What factors complicate your ability to compare the two companies?

  What is the amount of cash on hand

What term is applied to the debit balance in Mas capital account - what is the amount of cash on hand

  What is total amount of taxes that corporation must pay

Its adjusted taxable income for determining the accumulated earnings tax is $178,000. What is the total amount of taxes that the corporation must pay?

  Prepare the necessary adjusting entries - microchip company

A note was signed with principal and 7% interest to be paid on September 30, 2014 - Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,700.

  1or the pair of functions evaluate the domain of f gfx

1.for the pair of functions evaluate the domain of f g.fx 2x -9 gx 4x -3.2.for the pair of functions evaluate the

  Determine the amount of sedato company inventory

Sedato Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.

  Practical problems of extending auditors responsibilities

Briefly outline the extent to which an auditor is responsible for detecting irregularities and fraud and Consider the extent to which it would be reasonable to extend the auditor's responsibilities beyond that and the practical problems of ..

  Question instructions you have been asked to comment on the

question instructions you have been asked to comment on the accounting treatment for various independent transactions

  Questionpizza company purchased salt company common stock

questionpizza company purchased salt company common stock through open-market purchases as

  Evaluate the amount of uncollectible accounts

Identify and analyze the adjustment needed to estimate bad debts. Assume that the balance in Allowance for Doubtful Accounts is $20,000.

  Determine the target cost per unit for the cover

If Fine Line decides to produce the covers, it will need to invest $1,000,000 in new production equipment. Fine Line requires a minimum rate of return of 25% on all investments. Determine the target cost per unit for the cover.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd