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Business Law

Dollar Value for fair pricing; Lawyers and length of cases

Question # 1 When doing business with a foreign company, would you take into consideration the conversion rate of the dollar in order to determine a "fair" price for the products or would you simply charge what the goods are worth? Why or why not? Question # 2 It seems as if some lawyers use the media and trials to mak

Securities Act

Read the below and answer in regards to article: Do you feel the Acts were appropriate actions for the government to take? Where they effective? "The Securities Act of 1933 in its time was the first federal legislation that addressed issues that deal with sale of securities. Before this federal legislation it was the states

Differences between secured and nonsecured transactions

Please help with the following problem. Transactions between two parties may take the basic form of either secured or nonsecured. Compare and contrast the two and describe in detail the risks of each. Level: Master Accounting and CPA.

insider trading with a window washer

Ms. Johnson is an independent window washer who has been hired to wash the windows of the Jensen headquarters building. While scrubbing on a window on the 67th floor, she hears (through a ventilation screen) the president and the chairman of the board discussing, in confidence, that the corporation has discovered a new growth ho

Legal or Illegal pursuant to US law

Are the actions undertaken by the companies or individuals in the following scenarios legal or illegal pursuant to U. S. law? Please explain each of your answers. Scenario # 1 A cash payment of $100 made by an agent of Chicago Chemicals Co., a U. S. corporation, to a processing clerk in the Chilean Office of Business Licensi

Reviewing Privacy Policies of two competitors' web sites

Visit two competitors' web sites. Locate the Web page at each site where customers can purchase something online with a credit card or by using another electronic payment method. Locate the privacy policy that tells how those companies will use the customer information they collect. 1. Write a summary in your own words of

Ressorp Inc

Answer the question as if you are counsel for Reardon: Ressorp, Inc. in Japan agreed to sell 700 television sets to Reardon, a wholesaler, in the United States for US$ 144,417.00. Ressorp, Inc. and Reardon expressly agreed that Reardon would not pay for the television sets until Reardon both received and sold the merchandise

Jolly Canning Co. Case Study

Answer the question as if you are counsel for Jolly Canning Co in 200 to 300 words The Jolly Canning Co. in Hawaii agreed to sell 10,000 cases of canned green beans to the Merry Produce Co. in New York. The terms were FOB Bigport in Hawaii. The parties agreed that the governing rules were Incoterms 1990. Jolly, by mistake, de

Sarbanes-Oxley Act of 2002: Accounting Issues

Please complete the following questions: 1. What accounting issues does the Sarbanes-Oxley Act of 2002 address? 2. How do the act's provisions change the behavior of senior corporate executives and accounting professionals? 3. Do you think this is an effective solution or will it create additional paperwork? Explain.

Brooks Corporation sells computers under a 2 year warranty contract.

Brooks Corporation sells computers under a 2 year warranty contract that requires the corporation to replace defective parts and to provide the necesary repair labor. During 2010 the corporation sells for cash 400 computers at a unit price of 2,500. On the basis past experience, the 2 year warranty costs are estimated to be $155

Financial Management

Question 1. Otel Corporation entered into an agreement with its investment banker to sell 15 million shares of the company's stock with Otel netting $270 million dollars from the offering. The out-of-pocket expenses incurred by the investment banker were $5,000,000. a. What profit or loss would the investment banker incu

Employment law: FMLA, OSHA, employers' responsibilities, employee protections

Write a paper in which you explain the application and implication of each the following laws for your employer. Analyze at the following employee safety, health, and welfare laws: Family and Medical Leave Act (FMLA) Worker's compensation Occupational Safety and Health Act (OSHA) Other applicable laws Answer the f

General Law

QUESTIONS 1. Precedent is defined as: a. A past judicial decision relied on as authority in a present case . b. The process for compelling witnesses to appear before a court and give testimony c. To decide a case; settle by judicial decree 2. Does the following job posting demonstrate a valid BFOQ? Now hirin

Discrimination question

Assume you manage a work facility (retail store, factory, warehouse) and you have a case of racial discrimination and one of disability discrimination. What differences may exist in how you would investigate the cases and act on them? What actions would you recommend to resolve the cases?

specific performance or compensatory damages

Read the following scenarios and explain whether the court will likely grant specific performance or compensatory damages. a. Buffy contracts to sell her home to Dixie for $200,000. Before the deal closes, Barney offers to purchase the house for $225,000. Buffy refuses to sell the property to Dixie. b. Sinbad contracts to

employee training

Discuss the importance of training employees on the following: 1. Legal Requirements/Compliance 2. Employee Growth

Agency problem

How does the agency problem affect accountants? How has SOX changed the situation?

Business law: Joe's Pizzeria and Sub Shack agreement to purchase adjoining lot

Joe's Pizzeria and Sub Shack wishes to expand its restaurant and enters into an agreement with the owner of the adjoining lot, Sam Seller, to purchase the land and begin construction. A condition precedent to the contract is Joe's ability to obtain financing from First Bank. Joe dutifully applies for the construction loan, but,

Which one of the following is among the three components of audit risk? a. incurrence risk b. occurrence risk c. rejection risk d. control risk 2. The Hochfelder Case is important because it limited auditor liability under: a. the 1933 Securities Act. b. the 1934 Securities Exchange Act. c. common law. d. RICO. 3. Which of the following is an INCORRECT statement concerning one of the field work standards? a. Audit planning includes the development of audit strategies. b. Audit planning is aimed primarily at effectiveness, with little effect on efficiency. c. Understanding of the internal control structure is necessary in order to plan the audit. d. The auditor must have a reasonable basis, in the form of gathered evidence, for expressing an opinion. 4. An auditor would be most likely to issue a "summary of findings" in connection with which one of the following types of services? a. a financial statement audit b. consulting services c. an operational audit d. a review 5. Making sure that the detail of and accounts receivable file agrees with the general ledger before the file is used to produce confirmations is an example of which of the following audit procedures? a. Confirmation. b. Recalculation. c. Reperformance. d. Vouching. 6. The auditor has some control over: a. the assessed level of inherent risk. b. the actual level of inherent risk. c. both the actual level and the assessed levels of inherent risk. d. neither the actual level nor the assessed level of inherent risk. 7. Concerning such matters as the integrity of management, errors, and illegal acts, the auditor should plan the audit with an attitude of: a. cautious mistrust. b. professional skepticism. c. seasoned pessimism. d. adversarial pursuit. 8. Incompatible duties are those that allow an irregularity to be perpetrated: a. and concealed by a single employee. b. and concealed through collusive actions. c. by a single employee. d. by accounting personnel. 9. In making judgments about materiality at the account balance level, the auditor must consider the relationship between it and financial statement materiality. This should lead the auditor to plan the audit to detect misstatements that: a. are individually material to the statements taken as a whole. b. are individually immaterial to the statements taken as a whole. c. may be immaterial individually, but may aggregate with misstatements in other accounts to a material level. d. bring the cumulative total of known misstatements to the level of materiality established by management. 10. Which one of the following is NOT an inherent limitation in an entity's internal controls? a. mistakes in judgment b. collusion c. cost versus market d. breakdowns 11. Use of auditor judgment or of a risk matrix is necessary in revising planned detection risk whenever: a. risk assessments are not quantified. b. assessed control risk at the account balance level does not support the planned level of control risk. c. control risk is assessed above the minimum. d. control risk is assessed below the maximum. 12. The auditor has decided to use PPS sampling in the confirmation of individual sales transactions with customers. The population and the logical sampling unit are most likely to be, respectively: a. all customer accounts and the individual dollars in the accounts. b. customer accounts with debit balances and individual dollars in the accounts. c. the sales invoice file and the individual dollars on the invoices. d. all recorded sales during the year and individual sales invoices. 13. Which of the following is NOT considered an access control? a. the use of a librarian b. management review of computer utilization reports c. parity check d. the use of passwords 14. Which of the following is NOT an element of a computer-based system? a. software b. data c. procedures d. organizational personnel 15. The use of computer systems in accounting creates more areas where errors can occur. Which of the following should be of most concern? a. errors on customer invoices b. customer credit reports c. conversion of source data to computer-readable format d. accounts receivable master file Fill in the Blank - Type your response after the question Point Value: .25 each 16. Differences exist between the Securities Act of 1933 and 1934. More cases have been brought against auditors under the 1934 Act because it applies to annual filings and: 17. The type of risk that is independent of the audit of the financial statements and therefore cannot be changed is: 18. Occasionally, employees will work together to conceal fraud. This is known as: 19. Sometimes the auditor does not have the book value of the individual items in the sample. In this case, the sampling technique to be used is: 20. According to the Sarbanes-Oxley Act of 2002, the establishment and maintenance of internal controls is the responsibility of: True or False - Highlight those statements which are TRUE Point Value: .25 each 21. The fact that a company's management does not place a high priority on the entity's values creates a high-risk condition. 22. The AICPA provides a broad range of services to its members and the accounting profession. Membership into this organization is mandatory for Certified Public Accountants. 23. In order to fully understand the internal controls of an organization, the auditor must consider circumstances and judgment. 24. The steps for assessing the risk of material misstatement in the financial statements include evaluating the types of misstatements that might occur and evaluating the likelihood and magnitude of potential misstatements. 25. Computer abuse and computer fraud essentially mean the same thing. 26. A CPA Risk Advisory service consists of decision makers who are not a member of management or a board of directors. 27. Internal control can provide absolute assurance to a company's management and board of directors regarding the entity's ability to achieve objectives. 28. The auditor has a responsibility to determine if substantial doubt exists, as of the date of the audit report, regarding the entity's ability to continue as a going concern for the following year. 29 (skip) 30. What is generalized audit software? What are the tasks for which auditors would use it? What are the advantages and disadvantages of using generalized audit software? Will this software be more appropriate for auditing your organization's computer information system, or would it be necessary to develop customized audit software? What type of software will work best for your work environment? Please explain. 31. What is the difference between assurance and attestation services? Please provide examples of each. 32. Is it probable that the use of information technology will eventually eliminate the audit trail, making it impossible to trace individual transactions from their origin to the summary total on the financial statements? Please explain. How do the AICPA and the PCAOB want the auditor to address controls in the light of this technological shift? 33. What are internal controls? Why are they importa

1. Which one of the following is among the three components of audit risk? a. incurrence risk b. occurrence risk c. rejection risk d. control risk 2. The Hochfelder Case is important because it limited auditor liability under: a. the 1933 Securities Act. b. the 1934 Securities Exchange Act. c. common law. d. RICO.

law of one price

A logical starting point for understanding how exchange rates are determined is a simple idea called ___________, which states that if two countries produce an identical good, the price of the good should be the same throughout the world no matter which country produces it. Gresham's law the law of one price

EPA aerial photographs

Dow chemical company operated a 2,000-acre chemical manufacturing facility at Midland, Michigan. The facility consisted of numerous covered buildings, with manufacturing equipment and piping conduits between various buildings plainly visible from the air. Dow maintained elaborate security around the perimeter of the complex to

The Details of SOX and Who it Affects

What organizations are subject to Sarbanes-Oxley? What provisions affect these organizations most? How could Sarbanes-Oxley requirements drive a business to become de-listed from stock exchanges and no longer operate as a publicly traded company? How do other regulations similar to Sarbanes-Oxley apply to government entities or