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SSSSS [86.1K]
3 years ago
10

Smith, CPA, is a partner of Johnson Accounting Firm. Johnson audited the books of Hometown Bank. Smith's independence would be i

mpaired under which of the following circumstances?
Business
1 answer:
borishaifa [10]3 years ago
3 0

Answer:

A. Smith is a Director of Hometown Bank

Explanation:

First, the multiple Options

a. Smith is a director of Hometown Bank.

b. Smith has a collateralized automobile loan with Hometown Bank.

c. Smith had an account with Hometown Bank 2 years ago.

d. Smith and a Hometown Bank board member belong to the same church.

Basically, there are 5 characteristics of an auditor whose responsibility is access the financial statement of an organisation and give a true and fair report on the state of the business. One of these characteristics is Independence and Objectivity.

When there are potential risks to the ability of the auditor to give a true and fair view of the audited books, the we say the auditor's independence is impaired.

An auditor's independence is impaired as a result of business relationship with clients. This includes any form of business association with client as manager, employee, director among others.

Based on these definitions, Smith as a director of Hometown Bank and a partner of Johnson Accounting firm risks the impairment of his independence because of the business relationship of being a Director with the client.

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Why is it important for organizations and their managers to pay close attention to fair employment practices?
klio [65]

Answer:

Organizations and managers should pay close attention to fair employment practice so as to reduce the level of incompetent staffs at work.

Explanation:

4 0
3 years ago
Read 2 more answers
depreciation expense and amortization expense represent ______ items requiring adjustments to net income under the indirect meth
vodka [1.7K]

Based on the information depreciation expense and amortization expense represent non-cash items.

Non-cash items has to do with expense that does not involve paying cash.

Depreciation expense and amortization expense are non cash item as no cash payment is involve.

Although this expense may be included in a company profit or loss account or net income but they do not have effect on a company cash flow.

Non cash item like depreciation expenses and amortization expense often have effect on a company overall net income.

Inconclusion  depreciation expense and amortization expense represent non-cash items.

Learn more about non-cash item here:

<em>brainly.com/question/23158497</em>

5 0
3 years ago
Jeff was in a department store standing near a clothing rack. Store security felt that he was acting suspiciously because he was
liraira [26]

Answer:

c. No; the facts of this situation do not provide reasonable grounds for a stop and search. Any attempt to do so by store security could result in a claim of false imprisonment.

Explanation:

According to the situation described in the question above, store security has no right to stop and search for Jeff. Therefore, the letter c is the most correct answer to this question.

Jeff's actions in the store do not provide sufficient reasons for there to be any kind of stop and research, as the facts in the situation do not provide enough information about an illegal act, so if store security forces a situation there could be legal damage to the store .

Therefore, it is essential that stores adopt a theft prevention strategy, with an effective security system and a team prepared to carry out correct approaches.

4 0
3 years ago
The statement of cash flows presents:
Elena-2011 [213]

Answer:

Option C is correct.

Explanation:

The statement of cash flow presents us the information about the cash, where the cash was invested including how much cash we have earned by investing in projects, how much cash the operations has created and how much cash has been created from the financing activities. This statement tells us about the origin of the cash and where the company is spending it.

4 0
3 years ago
Sheila sells land to Elane, her sister, for the fair market value of $40,000. Six months later when the land is worth $45,000, E
77julia77 [94]

Sheila Recognized gain is \$16000

Jacob Recognized gain is \$8000

<u>Solution: </u>

Sheila’s Sale:

Amount noticed              \$40,000

Fixed basis                      (24,000)

                                       -------------

Gain                                 \$16,000

Recognized Gain = \$16,000

Jacob’s Sale:

Amount noticed              \$48,000

Fixed basis                      (40,000)

                                       -------------

Gain                                \$8,000                            

Recognized Gain = $8000

The $40,000 profit base of Jacob is same as the adjusted basis of Elane.

8 0
3 years ago
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