Financial reporting to the risks of material misstatement

Assignment Help Risk Management
Reference no: EM13496515

Since 2006, a large number of finance companies in New Zealand have collapsed. Many management and accounting practices impacted the collapse of the finance companies. These practices include the debt funded business model and loans to related parties.

Required:

1. Explain how the following practices impacted the collapses of many finance companies. Citing the appropriate International Standards on Auditing explain also how they in turn exposed the companies' financial reporting to the risks of material misstatement of financial statement:

(a) the debt funded business model

(b) loans to related parties

2 What are the auditor's responsibilities for the following in an audit of financial statements of finance companies? Where appropriate, cite the relevant International Standards on Auditing (NZ).

(a)debtors

(b)relatedparty relationships and transactions

Reference no: EM13496515

Questions Cloud

What total length of wire is required : A solenoid is designed to produce a magnetic field of 2.50×10?2 at its center. It has a radius of 1.70 and a length of 44.0 , What total length of wire is required
What are the only conditions under which the market portfoli : Explain what the following sentence means: The market portfolio is a fence that protects the sheep from the wolves, but nothing can protect the sheep from themselves.
Calculate cost of goods manufactured : Calculate Cost of Goods Manufactured and prepare a schedule to support your calculations based upon the following information for Example Manufacturing, Inc. for January 2012. (See slide 13 of S-V for an example of a schedule):
What is focal length of passengers mirror : In many cars, the passenger's side mirror has the following warning "Objects in mirror are closer than they appear" embossed on the mirror surface. What is focal length of passengers mirror
Financial reporting to the risks of material misstatement : Explain how the following practices impacted the collapses of many finance companies. Citing the appropriate International Standards on Auditing explain also how they in turn exposed the companies' financial reporting to the risks of material miss..
Explain what mass of barium sulfate can be produced : What mass of barium sulfate can be produced when 100.0 ml of a 0.100 M solution of barium chloride is mixed with 100.0 ml of a 0.100 M solution of Iron(III) sulfate
What is the amount of income tax provision : What amount of deferred tax assets or deferred tax liabilities are on the two most recent years on the balance sheet?
On which stocks should you put a sell order in : You know that there are informed traders in the stock market, but you are uninformed. Describe an investment strategy that guarantees that you will not lose money to the informed traders and explain why it works.
What is the resistance of each bulb : Eight 6.5 -W Christmas tree lights are connected in series to each other and to a 120 -V source. What is the resistance of each bulb

Reviews

Write a Review

Risk Management Questions & Answers

  Risk tolerance and factors in setting risk tolerance

Define risk tolerance and factors in setting risk tolerance and define limitations in risk tolerance and potential outcomes.

  How much would you pay for this business today

How much would you pay for this business today assuming you needed a 18% return to make this deal and What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.

  Explain risk management to your new staff

In presentation format (slides), explain risk management to your new staff and distinguish between the 3 factors of financial risk as it pertains to the banking industry.

  How might a project manager assess the risk of things going

How might a project manager assess the risk of things going wrong and take that into consideration of the time needed to complete a project?

  Irr and npv approaches valley corporation is attempting to

irr and npv approaches valley corporation is attempting to select the best of a group of independent projects competing

  Hypothetical healthcare organization ratios

Discuss and explain why one should apply caution when using financial ratios for analyzing a healthcare management's current financial position and future viability.

  Do the benefits of vaccinationoutweigh the risks

Using the research topic: Do the benefits of vaccinationoutweigh the risks? 1. Find 10 sources of information and write about the complete citation for each.Try to complete a set of other sources that is as diverse as possible.

  What is the equilibrium risk premium

What is the equilibrium risk premium

  Identify the major business and financial risks

Identify the major business and financial risks such as interest rate risk, foreign exchange risk, credit, commodity, and operational risks.

  Essential for someone to be a moral agent

What is necessary for someone to be a subject of moral worth and what is the difference between someone being a subject of moral worth and someone being included in the moral community?

  Use this analysis to develop an executive summary of the

use this analysis to develop an executive summary of the findings of your group and one recommendation. this summary

  Explore how to identify and develop high-potential talent

Provide a brief description of the status of the company that led to its determination that a change was necessary and identify the model for change theory typified in the case study of your choice.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd