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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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JavaPro Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. JavaPro Systems has budgeted
Iteru [2.4K]

Answer:

$429.60 Favorable

Explanation:

Provided information,

Standard Hours for each product = 3 hours

Standard Cost per hour = $14.00

Actual hours used = 198

Actual output = 80 connectors

Standard hours for actual output = 80 \times 3 = 240 hours

Actual Rate = $14.80 per hour

Direct labor cost variance = Standard Cost - Actual Cost

Standard Cost = Standard hours \times Standard Rae

= 240 \times $14 = $3,360

Actual Cost = 198 \times $14.80 = $2,930.40

Variance = $3,360 - $2,930.40 = $429.60

Since actual cost is less than standard variance is favorable.

$429.60 Favorable

3 0
3 years ago
A quality control activity analysis indicated the following four activity costs of an administrative department:
Doss [256]

Answer:

total sales are the internal failure costs is 2%

Explanation:

given data

form to reduce errors =  $15,000

customer complaints = 75,000

Verifying = 30,000

Correcting errors = 60,000

Total = $180,000

sales = $3,000,000

to find out

total sales are the internal failure costs

solution

we know here that internal failture cost is express as

internal failture cost  = correcting error in form   ...........1

internal failture cost  =  $60000

and

internal failture cost as % of total cost is here as

internal failture cost to sale = \frac{internal\ failture\ cost}{sales}   .......2

internal failture cost to sale = \frac{60000}{3000000}

internal failture cost to sale = 2%

so total sales are the internal failure costs is 2%

3 0
4 years ago
A farmer grows wheat, which she sells to a miller for $70. The miller turns the wheat into flour, which she sells to a baker for
Artist 52 [7]

Answer:

a. GDP in this economy is $135.

b. Producer     Value Added

                            (Dollars)

Farmer                     70

Miller                        50

Baker                        15

Total                   $135

c. The total value added for the three producers in this economy does not equal the economy’s GDP.

b. False

Explanation:

Ordinarily, Gross Domestic Product (GDP) is the economic measure of the total value of all the finished goods and services produced within a country's borders in a specific time period, usually a year.  Broadly, it comprises the totality of private consumption, fixed investment, change in inventories, government consumption, and net exports.  On the other hand, value added can be defined as the economic profit made from a business activity.

8 0
3 years ago
William is an IT specialist at Madrid Sales and Services. He is payed $24.00 an hour and works 20 hours a week. He is payed ever
Studentka2010 [4]

Answer:

what in the world is the questionExplanation:

5 0
3 years ago
The 20% off sale is a better deal than the $200 rebate or $150 coupon for the $1,500 dining set. The Porters budgeted $1,250 for
vovikov84 [41]

Answer:20% off is better and it is the only offer which is under the budget.

Explanation:Given,

The original cost of the dining set = $ 1,500,

If there is a off of 20%,

Then the discount on dinning table = 20% of 1500

= $ 300

So, the final amount of the dinning table after 20% off = 1500 - 300 = 1200 < 1250

Thus, it under the budget.

Now, in $ 200 rebate,

The new cost of the dinning table = 1500 - 200 = $ 1300 > 1250,

Thus, it is not under budget.

While, In $150 coupon,

The new cost of the dinning table = 1500 - 150 = $ 1350 > 1250,

Thus, it is not under budget.

5 0
3 years ago
Read 2 more answers
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