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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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Mcdougald Corporation is a service company that measures its output by the number of customers served. The company has provided
ANEK [815]

Answer:

The spending variance for "Employee salaries and wages" for March would have been closest to $1,200F .

Explanation:

Customers served (q)

Employee salaries and wages ($58,400 + $1,000q)

The spending variance for "Employee salaries and wages" for March would have been closest to

         Actual Results      Flexible Budget     Revenue and Spending Variances

(q)          26                 26      

($58,400 + $1,000q) $ 83,200 $ 84,400    $1,200F

6 0
3 years ago
Vanessa contributed $20,000 of cash and land with a fair market value of $100,000 and an adjusted basis of $40,000 to Cook, Inc.
IRISSAK [1]

Answer:

Vanessa's tax basis in cook inc.           $50,000

Explanation:

Given:

Cash = $20,000

Fair market value = $100,000

Adjusted basis = $40,000

Mortgage executed = $30,000

Now,

For the tax basis

             cash                                          $30,000

add;      Land ( adjusted basis )             $40,000

less ;     Mortgage                                  $20,000

============================================

Vanessa's tax basis in cook inc.           $50,000

============================================

6 0
3 years ago
The Geostar Company, leading manufacturer of wireless communication devices, is considering three cost-reduction proposals in ts
S_A_V [24]

Answer: Alternative 3 will be selected.

Explanation:

The system that should be selected is the alternative that is better than the other alternatives by being higher than MARR if selected.

First compare A1 to A0

The rate of return here is 18% which is higher than the MARR of 15% so Alternative 1 should be chosen over A0 which is to do nothing.

Compare A1 to A2

If A2 is chosen over A1, the incremental return is 10% which is less than the MARR of 15% so A2 should not be chosen over A1. A1 should instead be chosen over A2.

Compare A1 to A3

If A3 is chosen over A1 then the incremental return would be 18%. This is higher than the MARR of 15% so Alternative 3 should be chosen over Alternative 1.

Alternative 3 should be chosen over A1 which should be chosen over A2 and A0.

A3 will therefore be selected.

7 0
3 years ago
Why do you think different college majors pay for themselves at different rates?
Brums [2.3K]
In my opinion, i think this happens because different majors can you get different jobs, where people are making different amounts of money! so if you had a education degree, it would take longer to pay it “off” verses say a law degree! hope that kinda helped :)
3 0
3 years ago
Which feature of a customer relationship management (CRM) application assists with tasks such as controlling inventory and proce
nlexa [21]

Answer:

knowledge management

Explanation:

A customer relationship management individual user knowledge management component aids with activities like inventory control as well as production process.

Knowledge assets of an institution's knowledge and information being created, shared, used, and managed. It is a multimodal approach to achieving organisational goals via the most effective use of knowledge.

6 0
2 years ago
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