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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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1. All of the factors below create a change in demand for alcohol except: a. Change in cigarette prices given that cigarettes an
Gnesinka [82]

Answer:

d. Rise in price of alcohol

Explanation:

Change in Quantity demanded occurs due to change in Price. Change in Demand happens due to factors other than price - Income, Substitute & Complementary good's price, Taste.

Change in alcohol demand - due to substitute Cigarette price change , Change [Decrease] in alcohol demand - due to change in taste based on anti drinking sentiments, higher risk of alcohol liver cirrhosis , Change [Increase] in alcohol demand - due to change [rise] in Income : These all are due to factors other than price & hence are 'Change in Demand'

Rise in price of Alcohol leads to 'Change [Expansion] in Quantity Demanded' due to price change [rise] .

5 0
3 years ago
Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You nee
sleet_krkn [62]

Answer: 2.72%

Explanation:

An annuity is a series of payments that is made at equal intervals. Examples are monthly home mortgage payments, regular deposits to a savings account, pension payments.

Number of payment period (NPER) = 12 years

Payment per period (PMT) = $15000

Amount needed, PV = $156000

The formula for an annuity is calculated as:

P = PMT x ((1 – (1 / (1 + r) ^ -n)) / r)

= Rate(12,15000,-156000,1)

Rate = 2.72%

7 0
3 years ago
Jones Manufacturing sells a part to Lear Corporation.Lear puts this part into a radio,which Lear then sells to Ford.From Ford's
AleksandrR [38]

Answer:

d)Tier 2

Explanation:

from the question we are informed about jones Manufacturing sells a part to Lear Corporation.Lear puts this part into a radio,which Lear then sells to Ford.From Ford's point of view, in this case Jones Manufacturing is tier 2. Tier 2 capital can be regarded as second layer of capital which serve as a required reserves of a bankIt contains revaluation reserves as well as hybrid capital instruments

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3 years ago
Often, products enter the Blank______ stage of the product life cycle not due to any error in strategy but because of environmen
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Often, products enter decline the  stage of the product life cycle not due to any error in strategy but because of environmental changes.

<h3>What is product life cycle?</h3>

A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves. There are four stages in a product's life cycle—introduction, growth, maturity, and decline.

<h3>What is the decline stage?</h3>

The final stage of the product life cycle (after introductory stage, growth stage and maturity stage) when sales are dropping because the original need and want have diminished or because another product innovation has been introduced.

The sales of most products will decline at some stage. This can be due to factors such as technological advances, trends, innovation or changing consumer tastes. You will know when your product reaches the decline stage of its life cycle because you will notice a significant downturn in the revenue it generates.

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4 0
2 years ago
Who had ideas that many workers of the industrial era followed?
charle [14.2K]
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