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Problem 1: You are the auditor of Suthie Limited (Suthie), a dairy products manufacturer, for the financial year ending 30 June 2018. On 21 July 2018, you learn that Suthie has initiated a recall of a new product line of cheeses as a result of a notification by the NSW Food Authority that these products were in breach of product labelling requirements. Suthie had manufactured a significant stockpile of these cheeses prior to their sales launch on 1 July 2018. Which of the following would be the MOST appropriate action, if any, in relation to Suthie's financial report?
a) Adjust the 30 June 2018 financial report. b) Disclose the information in the subsequent events note in the 30 June 2018 financial report. c) Request Suthie's management to issue revised 30 June 2018 financial report. d) No action would be required.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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