Should pvc have accepted boat and the gift

Assignment Help Auditing
Reference no: EM13487366

Ocean Adventures Limited is a large importer/wholesaler of luxury cruise boats and is currently experiencing financial difficulties. Their audit firm is PVC Partners but they have not paid the audit fees for the past three years. The audit partner recently threatened to resign from the audit if the outstanding fees were not paid. To prevent this occurring, Ocean Adventures offered to supply AUDITRUS with a nine-metre cruise boat as payment. The partner accepted this offer in full consideration of the outstanding fees, even though the boat was only worth 75% of the balance.

As a gift, Ocean Adventures also gave the partner a 15% shareholding in an unrelated company. At present these shares are worth $21,500.

Q: What if any, issues exist in this situation? Should PVC have accepted boat and the gift (consider each one separately in your answer).

 

Reference no: EM13487366

Questions Cloud

Explain the catalyst to the active site of the reaction : What is the reason for using a phase transfer catalyst? a)It is used to transfer the catalyst to the active site of the reaction b)It serves as a proton transfer agent which moves protons from a base to an acid
Prepare closing entries and post : Prepare annual adjusting entries and post to the ledger accounts and Prepare closing entries and post
At what speed will the water strike the building : A fireman d = 59.0 m away from a burning building directs a stream of water from a ground- level fire hose at an angle of ?i = 29.0° above the horizontal, at what speed will the water strike the building
Explain what is the molar absorptivity of the vitamin : A solution of a specific vitamin has ?max = 273 nm and a concentration of 6.51 × 10-7 M. The absorbance of the solution at 273 nm is A = 0.180. What is the molar absorptivity of the vitamin at 273 nm? (sample pathlength = 1.00 cm)
Should pvc have accepted boat and the gift : As a gift, Ocean Adventures also gave the partner a 15% shareholding in an unrelated company. At present these shares are worth $21,500.
Explain the reason for using a phase transfer catalyst : What is the reason for using a phase transfer catalyst? a)It is used to transfer the catalyst to the active site of the reaction b)It serves as a proton transfer agent which moves protons from a base to an acid c)It is a small molecule which attac..
With what speed does the car then strike the tree : The driver of a car slams on the brakes when he sees a tree blocking the road. The car slows uniformly with acceleration of -5.90 m/s2 for 4.45 s, With what speed does the car then strike the tree
What sections of the act are bought into question : What is the issue in this situation and what sections of the Act are bought into question? Is there something that should be in place with the audit firm?
Prepare journal entries to record the december : Prepare journal entries to record the December 2012 transactions, post those entries to t-accounts and prepare journal entries for the required adjusting entries.

Reviews

Write a Review

Auditing Questions & Answers

  Distinguish forensic accounting from fraud examination

Write a report on the article bellow, including if described in the article - items to report on: perpetrator info, why the fraud was committed (motive), amount of loss (damages), and any other interesting facts;

  You are a manager at a cpa firm and you have been asked to

you are a manager at a cpa firm and you have been asked to write an article on audit planning for the firms monthly

  Public role of auditors in america

In a discussion between Peters and Ferrel, Two auditing students, Peters made the following statement: "A CPA is a professional person who is licensed by the state for the purpose of providing an independent expert opinion on the fairness of finan..

  Compute the direct labor rate and labor efficiency variances

Compute price and usage variances for direct materials, compute the direct labor rate and labor efficiency variances and compute the fixed overhead spending and volume variances. Intercept the volume variance.

  Heres another exercise this time in the opposite direction

heres another exercise this time in the opposite direction. this one may be a little more challenging. expenses paid

  Deal with the problems faced by alabama industries

What sort of prevent control could be used to deal with the problems faced by Alabama industries? Explain how the control would work ?

  Annual dividends-total dividends and common stock

Calculate the amount that would be received by an investor who has owned 170 shares of preferred stock and 260 shares of common stock since 2011 if a $0.35 per share dividend on the common stock is paid at the end of 2014.

  Internal control components-definition-application

What internal controls components are common among long-term assets and liabilities, and equity accounts? What components are unique to each? How can an auditor assess these controls?

  Audit program outlines and audit issues

Audit program outlines in detail what an auditor plans to do and the expected required time to accomplish each task. An audit engagement may involve more than one audit program.

  Benefits and limitations of audit

Explain the economic benefits provided by a financial statement audit. Explain the inherent limitations that might prevent auditors from finding every potential material misstatement in financial statements.

  Auditing and assurance

Show the audit inherent risk and rate the risk as low, medium or high.

  Merits and demerits internal external auditor

What are the advantages and disadvantages of the primary types of auditors? Which type interests you the most? Please explain.

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