1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
klio [65]
4 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]4 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.

You might be interested in
Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they
nata0808 [166]

Answer:

The following summarizes the solution to the given problem.

Explanation:

The given values are:

Sales,

= $660,000

Expenses,

= $255,453

Received cash revenues,

= $605,934

(a)

According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.

⇒ Net \ income=Sales-Expense

On substituting the given values, we get

⇒                     =660,000-255,453

⇒                     =404,547 ($)

(b)

⇒ Net \ Income =Received \ cash \ revenues-Expenses

On substituting the given values, we get

⇒                     =605,934-255,453

⇒                     =350,481 ($)

(c)

  • The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
  • It accepts the profits throughout a similar time frame.
5 0
3 years ago
According to the article, what should you do if you suspect your boss of unethical business practices?
Aleksandr-060686 [28]

Answer:

Report it to the right person

Explanation:

According to the article titled "What to do when you spot your employer doing something illegal" written by Catherine Conlan.

It says the best thing to do is to report it to the right person.

This is evident when it is stated in the article that "If you reasonably believe your employer is doing something illegal or unethical, you should first bring it to your supervisor’s attention... If it’s your supervisor you suspect, exhaust the chain of command within the company.

Hopefully, the company will investigate the matter. If no one within the chain of command responds, then there is generally a government agency with whom one can file a complaint,"

8 0
3 years ago
There are ten polluting firms, Firm1,. . . ,Firm10. Each firm emits 100 pounds of pollution prior to any regulations (so there a
aleksklad [387]

Answer:

Answer for the question:

There are ten polluting firms, Firm1,. . . ,Firm10. Each firm emits 100 pounds of pollution prior to any regulations (so there are currently 1,000 pounds being emitted). Each firm has constant marginal abatement costs, but the costs vary across firms. Conveniently, the firms’ names indicate their marginal abatement costs. Firm1’s marginal abatement costs are constant at $1 per pound, Firm2’s marginal abatement costs are constant at $2 per pound,. . . , and Firm10’s marginal abatement costs are $10 per pound.

a. Suppose the regulator wants to achieve a 25% reduction in pollution (250 pounds). What is the cost effective allocation of emis- sions across the ten firms?

b. What are the total abatement costs for society to achieve a 250 pound reduction in emissions?

c. The marginal damage of pollution in this city is given by MD= 4-1/250 X, where X is the total reduction in pollution. What is the optimal level of pollution?

is given in the attachment.

Explanation:

8 0
3 years ago
You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.2 million Czech koruna today i
fredd [130]

Answer: The value of this exchange is $8,816.05.

Explanation:

The problem is dealing with a simple case of arbitrage of exchange rates: Lets assume that

k = koruna

b = baht

Step 1:

Sales Revenue = k2,200,000

(To get USD amount : \frac{2,200,000}{25.36}=$86,750.7886

Purchase Cost = b3,200,000

(To get USD amount : \frac{3,200,000}{41.06}=$77,934.7297

Step 2:

Profit = Sales Revenue - Purchase cost

         = $86,750.7886 - $77,934.7297

         = $8,816.0589

The value of this exchange is $8,816.05.

4 0
4 years ago
Hokey​ Min's Kleen Karpet cleaned 75 rugs in​ October, consuming the following​ resources: ​Labor: 520 hours at ​$17 per hour ​S
Lorico [155]

Answer:

(a) 0.0085 rugs per dollar.

(b) 0.0069 rugs per dollar.

Explanation:

We have been given that Hokey​ Min's Kleen Karpet cleaned 75 rugs in​ October, consuming the following​ resources: ​Labor: 520 hours at ​$17 per hour.

(a) To find the labor productivity per dollar, we will divide number of rugs by amount spent on labor.

\text{Amount spent on labor}=\text{520 hours}\times \frac{\$17}{\text{Hour}}=\$8,840

\text{Labor productivity per dollar}=\frac{75\text{ rugs}}{\$8,840}

\text{Labor productivity per dollar}=\frac{0.0084841628959\text{ rugs}}{\$}

\text{Labor productivity per dollar}\approx \frac{0.0085\text{ rugs}}{\$}

Therefore, the labor productivity is 0.0085 rugs per dollar.

(b) To find the multi-factor productivity, we will divide number of rugs by total cost or expenses.

\text{Cost of solvent}=100\text{ gallons}\times \frac{\$5}{\text{ gallons}}=\$500

\text{Machine rental}=20\text{ days}\times \frac{\$75}{\text{day}}=\$1500

\text{Total expenses}=\text{Labor cost+Solvent cost+Machine rental}

\text{Total expenses}=\$8,840+\$500+\$1500

\text{Total expenses}=\$10,840

\text{Multi-factor productivity per dollar}=\frac{75\text{ rugs}}{\$10,840}

\text{Multi-factor productivity per dollar}=\frac{0.006918819\text{ rugs}}{\$}

\text{Multi-factor productivity per dollar}\approx \frac{0.0069\text{ rugs}}{\$}

Therefore, the multi-factor productivity is 0.0069 rugs per dollar.

7 0
4 years ago
Other questions:
  • The _______________ and the _____________________ along with the Funding Plan should be established early on in the Joint Capabi
    9·1 answer
  • Which of the following is true regarding the contribution margin ratio of a company that produces only a single product? Multipl
    7·1 answer
  • According to the dynamic​ ad-as model, what is the most common cause of​ inflation?
    13·1 answer
  • While a mechanic works on his car, a taxi driver takes Robert to his job as a warehouse laborer. At the end of his shift, he mak
    7·2 answers
  • On January 1, 2016, Brian's stock portfolio is worth $100,000. On September 30, 2016, $5,000 is withdrawn from the portfolio, an
    11·1 answer
  • On August 1, Greene Company purchased merchandise inventory on account with a list price of $25,000 and credit terms of 2/10, n/
    9·1 answer
  • g the three types of unemployment are A. ​voluntary, structural, and cyclical unemployment. B. ​frictional, structural, and cycl
    8·1 answer
  • What is the approximate yield to maturity and the exact yield to maturity (use a calculator) for the $1,000 semi-annual bond? As
    8·1 answer
  • Choose all of the possible causes of structural unemployment
    13·1 answer
  • A Blank______ does not require consumers to do anything other than buy a ticket or fill out a form for a chance to win some type
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!