Watts and williams a cpa firm audited the accounts of

Assignment Help Accounting Basics
Reference no: EM13602748

Watts and williams a cpa firm audited the accounts of sampson skins. the firm knew that sampson wanted that number of copies of the auditors report to furnish to the bank and other potential lenders auditirs supplied sampson with 20 copies upon completing the audit.

The balance sheet was misstated by $800,000.00.instaed of having a $600000 net worth the corporation was insolvent. assets were overstated by $500000 and a nonexisting accounts receivable of $300000 and inventory. the boxes were empty.Martinson relied on the audited financial statement loaned Sampson $200,000 he seeks to recover his loss from Watts.

Required: State whether each of the following is True or False . Explain

a. If Martinson alleges and proves negligence on the part of Watts and Williams , he will be able to recover his loss.
b If Martison alleges and proves constructive fraud he will recover his
lose.
c Martison does not have contract with with Watt and Williams.
d Martinson is a third party beneficiary of the contract, Watts and Williams made with Sampson Skins.
e .unless actual fraud on the part of Watts and Williams can be shown, Martinson can not recover.

Reference no: EM13602748

Questions Cloud

If so how would you as the leader responsible for the : the drive to incorporate sustainability into every corporations operations is a growing trend in the global economy.
Which products if any should be processed furtherif all : lamar corporation uses a joint process to produce products a b and c. each product may be sold at splitoff or processed
Kinsley and sons has sales of 185 million they had earnings : kinsley and sons has sales of 185 million they had earnings of 13 million. the web sales department is considering a
Ring company can sell a maximum of 1000 units of each size : ring company manufactures two tables small and large. the following data is available small large selling price per
Watts and williams a cpa firm audited the accounts of : watts and williams a cpa firm audited the accounts of sampson skins. the firm knew that sampson wanted that number of
The product normally sells for 160 per unit texas company : texas company produces and sells 22000 units of a single product. costs associated with this level of production are as
Marquita filters produces an air filter for use in jet : marquita filters produces an air filter for use in jet aircraft. parts are added at several points in the production
Case study -narda corporation agreed to sell all of its : case study -narda corporation agreed to sell all of its capital stock to effie corporation for three monthly payments
Proton company which begin operations in 2009 invests its : proton company which begin operations in 2009 invests its idle cash in trading securities. the following transactions

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the total cost of the departmental work in process

Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were 30% completed at the end of the period, and the following manufacturing costs were debited to the departmental ..

  On april 1 10000 shares of 5 par common stock wereissued at

on april 1 10000 shares of 5 par common stock wereissued at 22 and on april 7 5000 shares of 50 par preferredstock were

  Restructuring of the bank

As stipulated, your company is having financial difficulty and has asked the bank to restructure its $3 million note outstanding. The present note has 3 years remaining and pays a current interest rate of 10%.

  Record the treasury stock transactions

Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes.

  Cardinal corporation have in the assets

What basis will Cardinal Corporation have in the assets acquired from Finch Corporation?

  What is the dollar value of the widget inventory at the end

abigail corporation produces widgets. in 2008 its first year of operations the company produced 100000 widgets and sold

  How did mr mandoff keep his new investments at such a high

how did mr. mandoff keep his new investments at such a high rate of return and keep paying off investors and giving to

  Walters inc produces electronic storage devices and uses

walters inc. produces electronic storage devices and uses the following three-part classification for its manufacturing

  Lila battle has determined that the annual demand for

lila battle has determined that the annual demand for number 6 screws. lila who works in her brothers hardware store is

  Trout company is considering introducing a new line of

trout company is considering introducing a new line of pagers targeting the preteen population. trout believes that if

  Show the theoretical understanding

Show the theoretical understanding of the above stated issues, defining them and using references where required - how the companies are managing their Risk, Short Term Financial Policy,

  Determine the categories of debt and equity securities and

identify the categories of debt and equity securities and describe the accounting and reporting treatment for each

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