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klio [65]
3 years ago
11

ABC Ltd (ABC) engaged the accounting firm of Ace & King to perform its annual audit. Ace amp; King performed the audit in a

competent, non-negligent manner and billed ABC for $30 000, the agreed fee. Shortly after delivery of the audited financial report, Sam Lloyd, the assistant controller, disappeared, taking with him $40 000 of ABCâ s funds. It was then discovered that Sam had been engaged in a highly sophisticated, novel defalcation scheme during the past year. He had previously embezzled $50 000 of ABCâ s funds. ABC has refused to pay the auditorâ s fee and is seeking to recover the $90 000 that was stolen by Sam. Which of the following is correct?
The auditor cannot recover the audit fee and is liable for $90 000.


The auditor is entitled to collect the audit fee and is not liable for $90 000.


ABC is entitled to recover the $40 000 defalcation of the current year and is not liable for the $30 000 fee.


ABC is entitled to rescind the audit contract and thus is not liable for the $30 000 fee, but it cannot recover damages.
Business
1 answer:
Debora [2.8K]3 years ago
8 0

Answer:

The auditor is entitled to collect the audit fee and is not liable for $90 000.

Explanation:

Ace & King did their job in a competent way, the fact that the company's controller was doing something illegal is not their responsibility. External auditors work with the information that is given to them and their job is limited to analyzing them and making their conclusions about them.

In this case, the controller was the person responsible for giving the information to the auditing company, so he had the chance to direct their conclusions. An external auditor is not responsible for what happens inside a firm, and if someone steals money or assets, he/she is responsible for it.

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Marta, the public relations manager of a local library, is meeting with the news media regarding a new reading program for child
Zolol [24]

Marta is performing the <u>spokesperson</u> role.

<u>Explanation:</u>

By communicating projects, successes and / or perspectives, Public Relation managers build and maintain an advantageous public image for their company or customer, and thus serve as a spokesperson. The role of public relations managers is to answer questions from the press and pitch stories to the media, plan publicity kits and coordinate press conferences. A good PR manager is ultra-engaged and maintains the eye on what's going on in the industries of the clients. They also remain up-to-date about current world events and developments that may affect the industries within which they work.

3 0
3 years ago
Hiku Inc. developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at
mart [117]

Answer:

A) licensing

Explanation:

Based on the information provided within the question it can be said in this scenario the alternative that is being illustrated is known as licensing. This term refers to an agreement in which one business gives permission to another to be able to use the first company's patented product. Which in this scenario is a multi-screen table.

8 0
3 years ago
Vicky keeps a close eye on her company’s internal and external environment to discover possible opportunities for new products a
ddd [48]

Vicky keeps a close eye on her company’s internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition. Vicky is engaged in SWOT analysis.

All the bodily environments on the planet are known as the surroundings. The environment includes the entirety living and everything nonliving. The nonliving part of the surroundings has three essential parts: the surroundings, the hydrosphere, and the lithosphere.

Surroundings especially include ecosystems, hydrosphere, lithosphere, and biosphere. However, it may be more or less divided into two types which include (a) Microenvironment and (b) Macro surroundings. it may also be divided into other sorts inclusive of (c) physical and (d) Biotic surroundings.

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6 0
2 years ago
The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save mo
dmitriy555 [2]

Answer:

$19,385.93

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-48,000.

Cash flow in year 1 = $18,000.

Cash flow in year 2 = $22,000.

Cash flow in year 3 = $25,000.

Cash flow in year 4 = $12,000.

Cash flow in year 5 = $7,000.

I = 9%

NPV = $19,385.93

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

7 0
3 years ago
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Dire
tensa zangetsu [6.8K]

Answer:

5. $232,000.

Explanation:

The computation of the  total conversion costs transferred out of the Canning Department equals to

= Number of units completed and transferred out × Cost per equivalent unit

= 80,000 units × $2.90

= $232,000

In order to find out the total conversion cost, we simply multiplied the number of units completed and transferred out with the cost per equivalent unit

3 0
3 years ago
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