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grigory [225]
3 years ago
9

Rocky Point Brewery (RPB) filed an initial public offering in January 2016. RPB engaged Olsen & Alain, CPAs (O&A) in 201

3 to keep the books and prepare monthly and annual financial statements (while the company was privately-held), and terminated those services in December 2015. Under SEC and PCAOB rules, could RPB engage O&A to be their auditors now that it is a public company?
A.) Yes, but only if O&a rescinds any indemnification language existing in their non-audit engagement letters.B.) No, but only if the fees O&A received from these engagements exceeded five percent of the firm's annual revenues.C.) Yes, because the prohibited non-audit services were performed before the period of professional engagement.D.) No, because the prohibited non-audit services were performed during the period covered by the financial statements.
Business
2 answers:
ddd [48]3 years ago
8 0

Answer:

c. No, because the prohibited non-audit services were performed during

Explanation:

LuckyWell [14K]3 years ago
5 0

Answer:

The answer is: D.) No, because the prohibited non-audit services were performed during the period covered by the financial statements.

Explanation:

The SEC states that auditors can not perform certain non audit services to an audit client:

  • Bookkeeping
  • Financial information systems design and implementation
  • Appraisal or valuation services, fairness opinions, or contribution-in-kind reports.

Between 2013 and 2015, O&A performed the following services; bookkeeping  and preparing monthly and annual financial statements. When RPB goes public in January 2016, it presented financial statements provided by O&A, so O&A can not be RPB's auditors.

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Vadim26 [7]

The mass culture theory result from viewing cinema as a social institution.

Films that are widely disseminated and accessible can readily reach popular culture or mass culture.

Institutions in the theater or, more broadly, the arts have traditionally been on the front lines of managing societal crises or revolutions. Theatres serve as first responders, metaphorically, by providing locations and settings for enlarged depictions of the risks and challenges that society faces.

MASS CULTURE: Typically, the term "mass culture" refers to a culture that results from the centralized production methods used by the mass media.

The mass culture theory result from viewing cinema as a social institution.

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7 0
2 years ago
What is the advantage of having only one inbox?
Alik [6]
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3 years ago
Read 2 more answers
The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat
koban [17]

Answer:

Risk-free rate (Rf) = 8%

Return on market portfolio (Rm) = 15%

Beta (β) = 1.2

Ke = Rf + β(Rm - Rf)

Ke = 8 + 1.2(15 - 8)

Ke = 8 + 1.2(7)

Ke = 8 + 8.4

Ke = 16.40%

Earnings per share (EPS) = $10

Current dividend paid (Do) = 40% x $10 = $4

Retention rate (b) = &6/$10 x 100 = 60% = 0.6

ROE (r) = 20% = 0.2

Growth rate (g) = b x r

                         = 0.6 x 0.2

                         = 0.12 = 12%

Current market price (Po)

= Do<u>(1 + g) </u>  

        Ke - g

= $4<u>(1 + 0.12)</u>

     0.1640 - 0.12

= $4<u>(1.12)</u>

      0.044

= $101.82

             

Explanation:

First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).

Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.

7 0
4 years ago
Analogy: ______ is to voluntary as ______ is to involuntary.
dexar [7]
<span>Somatic and autonomic system are the two major components of peripheral nervous system.</span><span>
Analogy: somatic is to voluntary as autonomic is to involuntary.
</span>The somatic nervous system is responsible for movement of voluntary muscles and the process known as a reflex arc. The autonomic nervous system <span>controls vital functions,—as digestion, respiration, circulation.</span>
3 0
4 years ago
What nominal return was received by an investor when inflation averaged 3.46% and the real rate of return was 2.5%
Colt1911 [192]

Answer:

Nominal rate of return= 0.0596 = 5.96%

Explanation:

Giving the following information:

Inflation averaged 3.46%

The real rate of return was 2.5%

<u>To calculate the nominal rate of return, we need to use the following formula:</u>

Real rate of return= nominal rate of return - inflation rate

Nominal rate of return= real rate of retunr + infaltion rate

Nominal rate of return= 0.0346 + 0.025

Nominal rate of return= 0.0596 = 5.96%

7 0
3 years ago
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