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Problem 1: Note that reports of this size or longer are issued by the PCAOB each year for all of the national and international auditing firms. Many deficiencies are noted for all of the auditing firms and being addressed by the auditing firms. Many of the areas of concern identified in these reports were addressed in class. For example, see the top of page 13 (first bullet) of the this document.https://pcaobus.org/Inspections/Reports/Documents/2015_Grant_Thornton.pdf.
Required:
1. What assertion was not properly tested and why? How could they correct the situation?
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Telephone and mailing expenses are scheduled to increase by 8 percent even with no change in sales volume. However, these costs are variable with the number of units sold, as are packaging and delivery costs.
After deducting the annual exclusion, the amount of the gift was $100,000. Andrew's uncle paid a gift tax on the property of $24,000. What is the amount of Andrew's basis in the property?
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now that the board members of felicia amp fred are planning to implement a new crystal jewelry product line they are
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