Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem:
You are the partner in charge of the audit of Drugs4U Ltd, a company which develops, manufactures and sells to the a trade market a wide range of drugs which promote healthy living. The financial year end is 31st December and you are currently reviewing the notes of the planning meeting held between the Finance Director, your audit manager and yourself in November. The company has had a successful year so far with turnover already exceeding HK$500M.
A new accounting package has been introduced by the company. It was developed by the ex IT director who left following an argument with the finance director over the lack of testing of the new software - it was not run in parallel at all due to time and cost. It has been running for under a month and the finance director has not recruited a new IT director because he considers that they are not necessary within the company. He has better things to do.
New shares have been issued to fund a new drug called Argaiv which it is hoped will revolutionize exercise routines worldwide. These totaled HK$10M at nominal / face value and the company received HK$20M from this. The development costs for Argaiv and other products exceed HK$50M and the finance director proposes to capitalize this amount. A HK$75M bank loan has also been taken out - with the security on the loan being the land and buildings which the company owns outright at Sizewell in the United Kingdom. However the land has been suspected of being contaminated with a radioactive metal - the source of which is as yet unknown.
Required:
1) Explain what is meant by 'audit risk'.
2) Identify the factors to be considered and audit work to be undertaken when planning the audit.
Total Word Limit: 1202 Words
List and explain the points of financial impact on a company if it raises the credit standards required of its customers who utilized trade credit offered by the company.
merton enterprises has bonds on the market making annual payments with 14 years to maturity and selling for 972. at
Suppose you have 500 acres of timberland, with young timber worth $40,000 if logged now. This represents 1,000 cords of wood worth $40 per cord net of costs of cutting and hauling.
How does this affect your answers to parts A and B? What required rates of return would make you indifferent to all three options?
The James Clothing Co. pays a constant annual dividend of $3.90 per share. What is one share of this stock worth to you today if you require a 26 percent rate of return.
Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2010 and $1,200,000 in 2011. a. Calculate the inventory turnover for each year.
Assume that (1) all of the MM assumptions are met, (2) both firms are subject to a 40% federal-plus-state corporate tax rate, (3) EBIT is $2 million and (4) the unlevered cost of equity is 10%
a stock has the required rate of return at 16. the most recent divident paid is 2.00 and the expected dividend growth
Analyze the common debt and equity securities, determine which of the relative risks and returns are associated with each. Provide specific examples.
You have been freshly employed & your line manager is asking you to use duration model in order to assess the interest rate risk related to the loan portfolio.
if you have to choose between 2 equally risk annuities each paying 5000 per year for 8 years. one is an annuity due
if a bushel of corn costs pound3.00 and a british pound is worth 1.50 how many dollars would a person receive for
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd