is the following action or situation a violation of the AICPA Code of Professional Conduct? CPA Poirot bought a home in 2021 and financed it with a mortgage from Busey Bank. Busey recently merged with ABC Bank, and Poirot is the audit manager in charge of the ABC Bank Audit in 2020. OA Yes. OB. No.
Q: Required: a) Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not…
A: The unadjusted trial balance is prepared before the passing of adjusting journal entries. Adjusting…
Q: Presidio, Incorporated, produces one model of mountain bike. Partial information for the company…
A: A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or…
Q: 1. How should the $25 Referral Credit be recorded in Runway’s income statement? 2. When would Runway…
A: International Financial Reporting Standards (IFRS) are those accounting standards which have been…
Q: Which of the following are steps in process costing? Question 5 options: A) Visualize the…
A: Process costing is the method which is used by the entities to determine and allocate the costs of…
Q: The following additional information is available December 31, 2021: 1) Store Supplies on hand on…
A: Explanation - There are statements of the organization which show different accounting financials.…
Q: [The following information applies to the questions displayed below.] At the beginning of the year,…
A: Depreciation shows the reduction in the value of fixed asset over its useful life. It reduces the…
Q: withheld for income taxes and a final tax liability of $3,600. Would you be entitled to a/an (refund…
A: Taxes are withheld with employers temporary but final tax liability depends on the actual tax…
Q: 979/quizzes/1127207/take D Question 18 A company has the following information for its inventories…
A: Inventory - Inventory is an asset reported in the current assets of the balance sheet. Inventory…
Q: You just completed your taxes and had $3,79 withheld for income taxes and a final tax liability of…
A: A tax refund seems to be the difference between the total amount of tax paid and the total amount of…
Q: quivalent Units and Product Cost Report--Weighted Average Method The following data (and…
A: Requirement:- a)calculation of Equivalent units for materials and conversion as follows under:-…
Q: III. The following are transactions of Sha Warm a Spa for the month of June. 2017 June 1 Mr. Sha…
A: The primary reporting of the daily transactions in the books of accounts is done in the form of…
Q: Wyatt Company acquired 30% interest in the voting stock of Staples Inc. for $650,000. During the…
A: ANSWER:- $ 54,000 is correct answer $54,000 amount will wyatt company report on its income statement…
Q: 7. The total assets of the partnership will increase upon admission of a new partner by purchase of…
A: Since multiple questions have been posted, as per the guidelines only the first question will be…
Q: Bluebird Bakery produces bread sticks and uses a standard cost accounting system. The primary direct…
A: Solution: Standard price per pound = $1.20 Actual price per pound = $1.35 Actual quantity of flour…
Q: Smart Company prepared its annual financial statements dated December 31, 2020. The company applies…
A: As per LC&NRV inventory valuation rule, closing inventory is to be valued at lower of cost or…
Q: t of Jabari Steel Company had 800 tons in beginning work in process inventory (60% complete) on…
A: Answer : Calculate Equivalent units for conversion cost : Beginning Work in process = 800*40% = 320…
Q: There is a link between organisational ethics and the business model. In this case study the author…
A: Making information available to everyone is called "democratizing information." Google and Facebook…
Q: 12 13 9 10 5 6 4 3 1 2 33 34 35 36 24 25 26 27 28 29 30 31 32 22 23 19 20 21 16 17 DATE Oct. 2 15 14…
A: Trial balance is the statement that accumulates the balances of all ledgers. It has three columns…
Q: Cricket Inc. uses a standard cost accounting system and applies manufacturing overhead based on…
A: Variable manufacturing overhead rate = Variable manufacturing overhead cost / Machine hours…
Q: Brit Industries has two divisions, Division A and Division B. In 20Y8, Division B reports operating…
A: Solution: Return on investment of Division B for 20Y8 = 12% Turnover of Division B for 20Y8 = 3…
Q: Treating an immediate expense as a capital expenditure: O overstates expenses and understates net…
A: Immediate expense is directly charged in the income statement reducing the net income for the…
Q: Meow Foods had 2,000 25-pound bags of cat food in beginning inventory. During 2020, the company…
A: Variable costing is a managerial accounting cost concept. Under this method, manufacturing overhead…
Q: On the 30 January 2020, a retailer received an invoice worth RM17 500 including transportation cost…
A: If a customer buys in bulk, the supplier will give them a trade discount. If the consumer pays the…
Q: Linda, who files as a single taxpayer, had AGI of $280,000 for 2022. She incurred the following…
A: Allowable deductions are confined to revenue expenditure wholly and exclusively incurred in the…
Q: EJ-2 Presented below is the subsidiary Accounts Receivable account of Martha Nott. Date 2017 Sept. 2…
A: Subsidiary Accounts Receivable Account is the details of a particular customer's account balance…
Q: Beene Distributing is considering a project that will return $270,000 annually at the end of each…
A: Cash flow refers the amount of cash and cash equivalent which the company receives or gives out by…
Q: Required information [The following information applies to the questions displayed below.] AMP…
A: The value of qualified property is less than the threshold of $2,590,000 under 179 deduction.…
Q: On April 1 Sampson Corporation purchased $50,000 of Anston Company's 6% bonds at a purchase price of…
A: Cash received for interest is based on stated rate of interest and face value of bonds. Interest…
Q: Universal Semiconductors switched from the double-declining-balance depreciation method to…
A: Under straight-line depreciation method, depreciation expense is allocated equally over the useful…
Q: Please not that the accumulated Depriciation for 2020 using both methods does not agree to my…
A: Note - Your observation is correct the calculation for 2020 should match with the balance available…
Q: Horn Industries uses a standard cos on machine hours. Here are data re
A: Manufacturing overhead variance shows the difference between the actual performance and standard…
Q: [The following information applies to the questions displayed below.] Ray and Matlas own 50 percent…
A: The other name of the tax basis is called cost basis. When some asset is sold and the determination…
Q: Interval Answer: A. B. C. Monthly D. on day 1st of every 1 O An unscheduled journal entry O…
A: Recurring Transfer means a transfer or Basic Payment scheduled for a fixed amount at regular…
Q: An internet investment club asks Jose, a successful stockbroker, to advise its members. The club…
A: Yes, Jose is guilty of embezzlement. Embezzlement is defined as the illegal use of funds that have…
Q: Inc. for the year 20X1: Accounts receivable (January 1, 20X1) Credit sales during 20X1 Collections…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: Cliff's basis in his Aero Partnership interest is $13,900. Cliff receives a distribution of $26,600…
A: Liquidation of a partnership firm means shutting down the partnership business. In this case, the…
Q: oration is owned 100% by Nick hill and had taxable income in 2018 of $550,000. Nick is also an…
A: Corporation - A company is a separate legal entity from its shareholders. Many of the same legal…
Q: account relating to the business as at December 31, 201 $ from instrument contracts come enses: s &…
A: A schedule of tax liability refers to the form of a document that reflects compiled list of all the…
Q: Bennet Company purchased a patent from Arnold Company on January 1, 2021 for $450,000. Arnold…
A: A product or a technique that gives, in general, a new way of doing something, or offers a new…
Q: Jon owns 100 % of Jon, Inc (J). Jis liquidated and Jon receives land with a FMV of $500,000 and a…
A: Capital gain refers as profit earned on the sale of an asset which has increase in value over the…
Q: 1. What is the unit product cost under variable costing? 2. What is the unit product cost under…
A: Variable costing and absorption costing both is managerial accounting cost concept. The main…
Q: Required: a) Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not…
A: Explanation - There are statements of the organization which show different accounting financials.…
Q: Distinguish between the terms tolerable misstatement and preliminary judgment about materiality. How…
A: Tolerable misstatement is an amount of error that is considered acceptable when preparing financial…
Q: On January 2, 2018, Keystone Company borrowed $60,000 from Bank Three. The loan was to be repaid in…
A: Solution: Total borrowings = $60,000 Annual payments = $10,000 Balance borrowings at Dec, 31, 2019 =…
Q: A swap a. is not traded on an organized exchange and is customized to meet the needs of the…
A: A swap is a derivative contract in which one party exchanges or swap the cash flow/value of one…
Q: Riemer, Incorporated has four departments. Information about these departments is listed below.…
A: The expenses incurred by a business, either one-time or on an ongoing basis, for the purpose of…
Q: A/C Name Belvidere Pharmaceuticals D-Town Division Trial Balance as of December 31, 2021 Cash…
A: Financial Statements - Financial Statements includes Income Statement, Statement of Owner's Equity…
Q: Which of the following are reasonable ways to deal with excess demand? (select ALL correct answers)…
A: Excess capacity (or unutilized capacity) happens when a company operates or produces at a…
Q: At Bahama Foods, the break-even point is 20,000 units. If fixed costs total $60,000 and selling…
A: The variable cost can be calculated on the basis of the break-even point formula. The break-even…
Q: Calculate the cash surrender value for Lee Chin, age 38, who purchas stopped paying premiums. (Use…
A: In insurance there are premiums to be paid each year and if you stop payment of insurance premium…
Aa.27.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Below here were subsequent event that occurs in your client. Consider that all events were has material effect on client’s financial statement. The auditor is auditing financial statement for the year ended December 31, 2020 and is completing the audit in March 15, 2021.4) On February 15, 2021, the civil court decided that Client Company must pay compensation loss due to defect product sold to their customer. lawsuits started in court since June 20205) On February 20, 2021, a major of client customer which has large amount of outstanding A/R suddenly fill for bankruptcy6) On April 1, 2021 fire rage accident destroy client warehouse and the loss were materialQuestions:Indicate type 1 subsequent event, type 2 subsequent event, or not subsequent event. What kinds of action, client need to do? Adjust, disclose, or no need to do adjust/disclose for every point form 1) to 6). Provide the reason why it should be adjusted or disclose or neither.Mrs. Hubbard, a mother of two, has been selected for an audit. Advise her on what to do to prepare for the audit and what to do if the audit does not turn out favorably. Question content area bottom Part 1 To prepare for the audit: (Select all that apply.) A. Mrs. Hubbard should hire an accountant or tax attorney, if necessary. B. Mrs. Hubbard should anticipate probable questions and develop responses. C. Mrs. Hubbard should gather all supporting documents. D. Mrs. Hubbard should reexamine the areas where the IRS raised questions.An accountant is hired by a company to do an audit on their financial statements. The accountant does everything she is asked. 16 days after the audit, the CFO is arrested for embezzlement. The stockholders sue the accountant, suggesting that she should have discovered the embezzlement during the audit. Should the court find that the accountant is negligent? Group of answer choices A. Yes, because an accountant is hired to determine if there is embezzlement B. Yes, but only if it is shown than an ordinary accountant would have also uncovered the embezzlement C. No, because the accountant was hired by the CFO, so therefore it would have been a conflict of interest D. Yes, because the accountant was hired by the CFO, therefore it is likely the accountant is also guilty
- Question 1 For each of the following scenarios, indicate whether in your opinion it is a violation of the HKICPA Code of Ethics. Specifically, for each scenario, choose one of the following options: (1) not likely to be a violation; (2) likely to be aviolation; or (3)clearly a violation. For each scenario, clearly explain your reasoning. 1.→Tong and Tong CPAS recently completed the audit of the Michaels Corporation and- issued an unqualified opinion on the financial statements. Subsequent to the issuance of the financial statem ents and auditor'sreport, the Securities and Futures Commission: (SFC) initiated an investigation into possible illegal acts engaged in by Michaels Corporation, andhas requesteda copy of all the auditing documentation prepared by: Tong and Tong. Michaels Corporation has contacted Tong and Tong and threatenedto: take legal action against the audit firm if the auditors provide the auditing documentation to the SFC. Michaelsmaintains that the information is…Read the following cases. Required: For each case, select whether the action or situation shows a violation of the AICPA Code of Professional Conduct, and select the relevant rule. a. CPA Jerry Cheese became the new auditor for Python Insurance Company. Cheese knew a great deal about insurance accounting but had never conducted an audit of an insurance company. Consequently, Cheese hired CPA Tate Gilliam, who had six years of experience with the State Department of Insurance Audit. Gilliam managed the audit, and Cheese was the partner in charge. b. CPA Mackenzie Palin practices public accounting and is a director of Comedy Company. Palin's firm performs consulting and tax services for Comedy. Palin prepared unaudited financial statements on Comedy's letterhead and submitted them to First National Bank in support of a loan application. Palin's accounting firm received a fee for this service. c. CPA Ellery Idle audited the financial statements of Monty Corporation and gave an unmodified…Which of the following acts by a CPA would be most likely to be a violation of the AICPA Code of Professional Conduct? Select one: A “covered member” owns an immaterial amount of stock in an audit client. Accepting a fee in a tax matter that is contingent upon the result of an administrative proceeding. Assisting a client in preparing a financial forecast. Forming a professional corporation to practice as a CPA.
- The audit team is preparing to conduct its 2020 audit for ABC Company LLC. However, the audit team has not received its audit fees from ABC Company for its 2019 audit. The audit team might be tempted to issue a favorable report so that the company is able to secure a loan to settle the fees outstanding for their 2019 audit. Which threat may occur as a result of the financial or other interests of a professional accountant or of an immediate or close family member? O Self-interest threats Familiarity threats O Advocacy threats O Self-review threatsDiscuss whether the chartered accountants/registered auditors identified in each of the situations described below have failed to comply or are in danger of failing to comply with the fundamental ethical principles in the SAICA Code of Professional Conduct (2022). (First state the ethical principles/s and then the explanation for each principle.) Note: Any of the given situations may amount to non-compliance with more than one principle. Q2.1. John Smith is a registered auditor and the engagement partner on the audit of Letsatsi Safaris Ltd, a large company that owns several wildlife game reserves in South Africa and neighbouring countries. One of the perks of being the audit partner of Letsatsi Safaris Ltd, is that the managing director of the client grants a seven night free stay at a five star all inclusive lodge for four people. John is very excited about this prospect. However, in return, the managing director of the client requires an unqualified audit opinionOther Responsibilities and Practices Cases. Read the following cases. For each, statewhether the action or situation shows a violation or potential for violation of the AICPACode of Professional Conduct; if so, explain why, and cite the relevant rule.a. CPA Ron Stout completed a review of the unaudited financial statements of Wolfe Gifts.Arvida Wolfe was very displeased with the report. An argument ensued, and she toldStout never to darken her door again. Two days later, she telephoned Stout and demandedthat he return (1) Wolfe’s cash disbursement journal, (2) Stout’s documentation scheduleof adjusting journal entries, (3) Stout’s inventory analysis documentation, and (4) allother documentation prepared by Stout. Wolfe had not yet paid her bill, so Stout repliedthat state law gave him a lien on all of the records and he would return them as soon asshe paid his fee.b. CPA O’Dell May teaches a CPA review course at the university. He needs problem andquestion material for students’…
- Ma1. John Anderson, CPA, is auditing the financial statements of American Turkey and Taco Cat, a privately owned company, for the year ended December 31, 2019. Anderson plans to complete fieldwork and sign the auditor's report about March 10, 2020. Anderson is concerned about events and transactions occurring after December 31, 2019, that may affect the 2019 financial statements. What general types of subsequent events require Anderson's consideration and evaluation? What auditing procedures should Anderson consider performing to gather evidence concerning subsequent events?Which of the following is true?a. Members of an audit engagement team cannot speak with audit client officers about matters outside the scope of the audit while the audit engagement is in progress.b. Audit team members who leave the public accounting firm for employment with auditclients can provide audit efficiencies (next year) because they are very familiar with thefirm’s audit plans.c. Audit team partners who leave the public accounting firm for employment with auditclients can retain variable annuity retirement accounts established in the person’s formerfirm retirement plan.d. The public accounting firm must discuss with the audit client’s board or its audit committee the independence implications of the client’s having hired the audit engagement teammanager as its financial vice president.3. A violation of the code of ethics would most likely have occurred when a CPA a. Issued an unqualified opinion on the 2019 financial statements when fees for 2018 audit are still unpaid. b. Purchased a bookkeeping firm's practice of monthly write-ups for a percent- age of fees received over a 3-year period. c. Made arrangements with a bank to collect notes issued by a client in payment of his dues. d. Joined a firm made up of three non-CPA practitioners. 4. A violation of the code of ethics would least likely have occurred when a CPA in public practice a. Referred life insurance assignments to the CPA’s spouse who is a life insurance agent. b. Served simultaneously as a provincial board member and practice public accounting in the same province. c. Used a records retention agency to store the CPA's working papers and client's records. d. Served as an expert witness in a damage suit and received compensation based on the amount awarded to the plaintiff.