key financial statements
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A: Accounts receivable stem from the merchandise sold on credit and accordingly it takes some time…
Q: Which of the following losses can be considered as operational risk losses? a) A counterparty going…
A: Operational risk is defined by the Bank for International Settlements (BIS) as the risk of loss…
Q: Which of the following provides the best example of a systematic risk event? Group of answer…
A: A systematic risk event can be referred to as the risk whose occurrence in the system causes loss to…
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A: Financial systems refers to set of institutions such as banks, insurance companies, stock exchanges…
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A: 1. Sony's response to the cyber-attack was appreciable Because first thing they did was…
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A: Systematic risk is a very important concept in finance. It is that risk which is inherent to the…
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A: Due professional care is one of the important principles to be followed by the auditors. The…
Q: INTRODUCTION Bryce Commings was assistant controller for Waterton Company, and his responsibilities…
A: Liquidity implies the short term funds available to meet the day to day or operational payments.…
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A: In terms of business, Liquidity is the ability of the organization to use cash whenever it needs;…
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A: Write a letter to the Chief Executive Officer discussing the the key motivating considerations for…
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A: Option Explanation 1 Credit risk is the risk of default in payment of principal. 2 Inflationary…
Q: Too big to fail” was a common buzz phrase during the Great Recession. The idea behind it is that…
A: Too big to fail or TBTF means that some organisations are so large and essential to the functioning…
Q: Explain how the outbreak of the COVID-19 pandemic impacts on the accounting information system as a…
A: Introduction The outbreak of COVID 19 have affected all functions of companies all over the world in…
Q: the following points: Identify and discuss at least three common corporate failure factors…
A: Three common corporate failures : 1. Ineffective boards One of most obvious reasons for corporate…
Q: Required: a) What type of fraud is this? (4 marks, maximum 150 words) b) What controls can be…
A: Given information is: A council health inspector threatens to close down a restaurant by issuing a…
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A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: Audit need to give opinion of true and fair view of financial statement but if auditor need to draw…
Q: In prior periods, Cyber Systems used the direct write off method to account for bad debts. Cyber…
A: a) The direct write off method of bad debts is a method adapted by the business firms when the…
Q: In prior periods, Globo Gym Services used the direct write off method to account for bad debts.…
A: The question is related to direct write off method of accounting for bad debts. Bad debts means the…
Q: request to purchase on credit instead of cash on delivery
A: Determination of extending credit should be done after evaluating the credit worthiness of the…
Q: It is said of Gary Cohn, former chair of Goldman Sachs and advisor to the Trump presidency, that…
A: "Company G" is a leading investment banking and financial services company in the world. The reviews…
Q: (e) Estimate the cost of additional investment in account receivable and inventory associated with…
A: Solution:- e) Calculation of the Estimate the cost of additional investment in account receivable…
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A: Solution- Computation of the net effect of the plan on the company's pretax profit- Step 1…
Q: Bryce Commings was assistant controller for Waterton Company, and his responsibilities included bank…
A: Liquidity: Liquidity implies the short term funds available to meet the day to day or operational…
Q: Internal Control System Required: A list of terms and another list of definitions and examples are…
A: Components of internal control issued by COSO: Strategic risk represents the external risk of…
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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Many credit card fraud offenders are now becoming more organized than before, resulting in higher…
A: Credit card fraud is a type of fraudulent activity wherein fraudsters use credit card account of…
Q: Hannaford is a national grocery chain whose electronic payment processing system was breached by…
A:
Q: Ernest and Young cleared Wirecard’s reputation back in 2008 and BaFin, the German financial…
A: An accounting errors that are unintentional, which are described as the discrepancies that are…
Q: Which of the following would be a red flag that internal auditors should look at for the possibility…
A: Explanation : Controller has assumed the responsibility for approving all the payments to the…
Q: What form or forms of financial statement fraud is this? Where would we expect to see the impact of…
A: Financial statement fraud: Financial statement fraud refers to the deliberate manipulation and…
The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements.
(a)Identify the key financial statements. Explain how the information reported in these statements will help you to decide whether to accede to NEST Ltd’s request.
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- The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements. (a)In addition, identify other information(other than balance sheet, incomes statement and cash flow statement) that will be helpful in deciding whether to accede to NEST Ltd’s request? (b)You have also noticed that compared to last year, the allowance for bad debt for Nest Ltd has increased from 2% to 4 % of the accounts receivable. Discuss how this information will impact your review.Give some pointer with a summary from the below paragraph Capital One must examine and update the Business Continuity Plan (BCP) as they navigate the present COVID-19 pandemic. A Business Continuity Plan outlines how the business will continue operations if there is an unplanned disruption in services, and assist businesses to overcome any future challenges. Many organizations never provisioned for a pandemic in their BCP. At the beginning of the pandemic, banks needed to determine how best they could serve their customers in the safest way possible. Where possible, Capital One Bank allowed and continues to allow employees to work from home. The work-from-home infrastructure needed to be developed with sufficient flexibility and controls where the company’s business continues, and that employees remain productive. Normal operations that are usually done face-to-face can be aided by technological advancements. In addition to the work-from-home environment and supporting infrastructure,…The auditor worked for this client for years. But before accepting or continuing with the client, What are the reasons the auditor or audit firm should or should not retain this existing client this time around using the information below about the client? What risks could the client, its business, and its environment pose to the auditor or audit firm? The client: Although client cash flows have been stable, the disruption caused by the 2020 global pandemic made it difficult for retail lessors to pay their rent on time. Due to the company's tenant-friendly approach, retail clients were allowed to renegotiate their lease and temporarily pause rent payments between June 2020 and July 2021, shifting those payments to the last 12 months. Most of these leases will expire in the next two years, including all retail companies unable to pay their rent. However, they estimate that they will receive all the lost cash flow from these tenants within a couple of years. Currently, the company is a…
- Mr. Salim is the owner of an audit firm who audit the financial statements of the companies by charging fee. Lulu hypermarket is one of their old clients. Last month lulu hypermarket distributed discount coupon to their customers and it was a coincident that external auditors were also there, and they also got some coupons. Which of the following threat do you think can arise in this situation? a. Familiarity threat b. None of the options c. Self-interest threat d. Self-review threatThe CEO of the Baker Inc, wants to implement a new accounting system, to improve work flow through the company’s sales, cash receipts, accounts payable, and cash disbursement procedures. The CEO is, however, concerned about the potential disruption that the implementation will have on operations. In an announcement letter to Baker’s employees, the CEO stated that: “I have contracted Flybynight Consulting Group to do the needs analysis, system selection, and design work. The programming and implementation will be performed in-house using existing IT department staff. The development process will be unobtrusive to user departments because Flybynight knows what needs to be done. They will work independently, in the background, and will not disrupt departmental and internal audit work flow with time consuming interviews, surveys, and questionnaires. This promises to be an efficient process that will produce a system that will be appreciated by all users.” Required: Draft a memo from George…As Elaine Black reflects on her meeting with Jim Saxton and Peter Greyton, she considers where the company has been and where it is heading, and ponders the current issues regarding Robatelli's accounting information systems and its ability to take and record sales. She is concerned about the limitations of the current accounting information system. Are internal controls strong enough? Would a new, integrated IT system yield improvements? As she contemplates the integration of the POS systems at the restaurant locations with the GL software at the home office, she wonders about the requirements for developing and implementing such a system, and how to best utilize the system to support Robatelli's plans for growth. Elaine realizes that her ability to address these issues will be critical not only to the success of the company, but also to her career. Briefly describe the differences in Robatelli's three order-entry systems (in-store, telephone, and Internet). For each method,…
- As Elaine Black reflects on her meeting with Jim Saxton and Peter Greyton, she considers where the company has been and where it is heading, and ponders the current issues regarding Robatelli's accounting information systems and its ability to take and record sales. She is concerned about the limitations of the current accounting information system. Are internal controls strong enough? Would a new, integrated IT system yield improvements? As she contemplates the integration of the POS systems at the restaurant locations with the GL software at the home office, she wonders about the requirements for developing and implementing such a system, and how to best utilize the system to support Robatelli's plans for growth. Elaine realizes that her ability to address these issues will be critical not only to the success of the company but also to her career. Briefly describe the differences in Robatelli's three order-entry systems (in-store, telephone, and Internet). For each method,…Abdul Razak Trading LLC is trying to get financing for an extra plant expansion, but the company's bank wants to see a copy of its financial statements before it will loan the company any money. The company's bookkeeper prints out an income statement from its accounting system and mails it to the bank. This is a violation of which of the following fundamental ethical principles? O a. Confidentiality O b. Objectivity O C. Professional behavior O d. IntegrityThe SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated? A manager at a "Check Into Cash" business (see Focus on Ethics box on page 192) defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business? Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond…
- Using a bpmn modelling tool, model the control flow of a business process for modelling credit risk? the process starts when a new credit request is received. A risk management officer checks the levels of the application. If the risk is above a threshold, an advanced risk assessment needs to be carried out, otherwise a simple assessment will suffice. Once the assessment has been completed, the customer is notified with the assessment result while the disbursement is arranged. Fir simplicity, assume that the result of an assessment is always positiveExplain how the outbreak of the COVID-19 pandemic impacts on the accounting information system as a natural disaster and the strategies businesses can adopt to maintain current business operationsLeonard Moses is planning to grow its customer base and is in the process of creating an online web-based sales ordering system for customers to purchase products using personal credit cards for payment. At a recent meeting with the internal auditors, it was highlighted that there are risk associated with this system. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk.