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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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AVprozaik [17]

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What are brand elements ?

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3 0
2 years ago
An automobile battery manufacturer offers a 39/50 warranty on its batteries. The first number in the warranty code is the free-r
balandron [24]

Answer:

1)

If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.

Option a) 8.23% is the correct option

2)

the required standard deviation is 3.8

Option a) 3.8 is the correct answer

Explanation:

Given the data in the question;

mean μ = 44

standard deviation σ = 3.6

if a battery fails within 39 months of purchase, the manufacturer replaces the battery at no charge to the consumer. If the battery fails after 39 months but within 50 months

1)

If the manufacturer's assumptions are correct, it would need to replace_____ of its batteries free of charge

p( X < 39 ) = P( X-μ/σ < 39-μ/σ )

we substitute

= p( Z < ((39-44)/3.6 ))

= p( Z < -1.39 )

from standard normal table; p( Z < -1.39 ) = 0.08226 ≈ 0.0823

p( X < 39 ) = 0.0823 or 8.23%

Therefore, If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.

Option a) 8.23% is the correct option

2)

The company finds that it s replacing 9.34% of its batteries free of charge. It suspects that its assumption about the standard deviation of the life of its batteries is incorrect. A standard deviation of ______ results in a 9.34% replacement rate.

given that;

P( Z < x-μ/σ ) = 9.34%

⇒ P( Z < 39-44/σ ) = 0.0934 ----- let this be equation 1

now, from standard normal tables

∅( -1.32 ) = 0.0934   ---------- let this equation 2

so from equation 1 and 2

39-44/σ = -132

-5/σ = -1.32

σ  = -5 / - 1.32

σ  = 3.7879 ≈ 3.8

Therefore, the required standard deviation is 3.8

Option a) 3.8 is the correct answer

7 0
3 years ago
Please HELP! Will mark brainliest!!
kifflom [539]

Answer:

I would say safekeeping of employees and guests, as well as eliminating probable threats.

Explanation:

7 0
3 years ago
To find all mentions of your competitor's branded hashtag within a given radius of a store you've opened up in a new city, you s
Alenkasestr [34]
<span>To find all mentions of your competitor's branded hashtag within a given radius of a store you've opened up in a new city, you should set up a geo-search stream. When you set up the geo-search stream, have it filter the hashtag and the desired radios around the stores you wish to track. Tracking this will allow the company to have more insights on their competitors. </span>
3 0
3 years ago
Arbor Corporation reports the following: Sales revenue $183,000; ending inventory $12,600; beginning inventory $15,600; purchase
spin [16.1K]

Answer: Cost of goods sold = $62500

Explanation:

Given that,

Sales revenue = $183,000

Ending inventory = $12,600

Beginning inventory = $15,600

purchases = $64,000

purchases discounts = $4,000

purchase returns and allowances = $1,500

freight-in = $1,000

freight-out = $500

Cost of goods sold = Beginning inventory + purchases - purchases discounts - purchase returns and allowances + freight-in - Ending inventory

= $15,600 +  $64,000 - $4,000 - $1,500 + $1,000 - $12,600

= $62500

4 0
3 years ago
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