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!
Impulse Pty Ltd (Impulse) is an entertainment system manufacturer that was established in 2005. Your audit firm King & Queen have been the auditor of Impulse since its formation. The audit report for the year ended 30 June 2012 was unqualified. Although Impulse had been suffering liquidity problems with a drop in both debtors' turnover and inventory turnover, King & Queen did not consider that any additional audit work was necessary in regard to the valuation of these assets. In August 2012, Impulse obtained a large loan from a finance company, Easy Finance Limited (EFL), to provide additional working capital. However, Impulse continued to experience severe trading problems and was placed in liquidation in December 2012.
King & Queen has been notified by EFL's solicitors that they are taking action against your firm based on the audit of the 30 June 2012 financial report. EFL claim that the cause of Impulse's failure related to the inadequate provision for doubtful debts and a fall in the value of inventories on hand, and that these problems were evident at 30 June 2012, but had not been adequately dealt with in the financial report due to your negligence. They also claim that they would not have given the loan to Impulse if the 2012 financial report had been qualified.
Required
(a) Would King & Queen be liable to EFL? Provide specific case references to support your answer.
(b) Would your answer change if EFL had written to King & Queen advising you that they intended to make a loan to Impulse and were relying on the 2012 audited financial report to assist them in making their decision?
Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are control and creativity compatible?
Explain what operating leverage, ROE, EVA are and how they measure performance. Pick another performance measure of your choice and explain it as well. Give the advantages and disadvantages of each of these measures.
what are the types of differences that exist between us gaap and ifrs. in addition to just identifying the u.s. ifrs
Which one of the following is the service in which the CPA firm issues a written communication that expresses a conclusion about the reliability of a written assertion that is the responsibility of another party?
Prepare a response to the graduate's concerns. You should include a description of what an internal control is, the relationship between internal control components, organisational objectives and the different divisions of the organisation, and a ..
Identify and explain how some parts of the Corporations Act allow certain business conducted at company meetings to stand notwithstanding that the meeting has not strictly complied with all the legal requirements of the Act.
Can a nonprofit (not-for-profit) organization release restrictions on a "strike fund" and use it in the general fund for current year activity? Why or why not?
Show a qualified opinion on the financial statements because of the client imposed scope limitation.
What are some major components of an internal control system? Are these components always necessary?
The company's debt agreement with Western Financial Services requires the company to furnish the lender a report by our firm on KCN's compliance with various restrictive debt covenants.
answer the subsequent questions regarding the federal governments financial statementsa. who issues the audit
The profession has argued for decades about the advisability of mandatory reporting on internal control by public companies and by governmental entities. In the 1970s and 1980s,
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