My auditing firm is auditing the asset account Investments. Included in Investments is a material investment
Fantastic news! We've Found the answer you've been seeking!
Question:
My auditing firm is auditing the asset account “Investments”. Included in “Investments” is a material investment – Investment in BBw.inc. You learn that this company is a non-public company and my client, company A, has valued this investment at its fair value. The manager tells you that no one on the engagement team knows how to audit this asset. How is this concerning to the audit and in which way? Is there any rules talking about this situation?
Expert Answer:
Answer rating: 100% (QA)
The item Investment is a small portion in the balance sheet The auditors usually ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
You are an audit engagement manager of a public listed client of AB co. The audit senior has informed you that they have completed significant audit procedures for the final audit of this client....
-
A public relations agency tells its client that 80% of the residents in a 50-mile radius believe the company is an industry leader. Skeptical, the company commissions a survey in which just 320 of...
-
You are part of the audit team that is auditing Happy Chicken, Inc., a company that franchises Happy Chicken family restaurants. During the current year, management of Happy Chicken purchased for $2...
-
The value of integral integration from - infinity to infinity dx/1+x^4
-
Your neighbour invited you to lunch yesterday. Sure enough, it was no free lunch, because he wanted to discuss the annual report of the Dodge Corporation. He owns Dodge shares and has just received...
-
Use the Kyler Media Corporation data in Short Exercise 14-7 and the results you calculated from the requirements. Requirement 1. Prepare Kyler Medias statement of cash flowsindirect methodfor the...
-
Label each of the following characteristics of a corporation as either an (A) advantage or a (D) disadvantage: a. Limited liability b. Taxation c. Regulations d. Transferability of ownership
-
Magna Charter is a new corporation formed by Agnes Magna to provide an executive flying service for the southeastern United States. The founder thinks there will be a ready demand from businesses...
-
Read Case Study 3 and discuss the current or potential legal and/or regulatory issues apparent in this fact pattern that might impact a public offering. Case Study 1 Fred is well known in his town...
-
Consider the 2013 declined loan data from LendingClub titled RejectStatsB2013. Similar to the analysis done in the chapter, lets scrub the employment length. Because our analysis requires risk...
-
create table sales ( cust varchar(20), prod varchar(20), dayinteger, month integer, year integer, state char(2), quant integer, date date ) QUESTION: Report #2: CUSTOMER PRODUCT STATE MO Bloom Sam...
-
Do you agree with this argument? Why or why not? Argument against position: The ability to purchase guns should never be restricted, because they protect people. Validity: Potentially invalid, as it...
-
Explain what is meant by Customer Lifetime Value. How do marketers apply this formula to determine the effectiveness of their direct marketing programs? What are some advantages and disadvantages to...
-
Exercise 1-14B Interpreting information shown in a balance sheet Both balance sheets shown in the following table were dated as of December 31, Year 3: Balance Sheets for Assets Cash Land Total...
-
Cramton and Dees discuss an imaginary country, Metopia, to discuss deception in negotiation. They offer advice and thoughts on promoting honesty in negotiations, and on page 13 of the article,...
-
Coburn (beginning capital, $57,000) and Webb (beginning capital $92,000) are partners. During 2022, the partnership earned net income of $65,000, and Coburn made drawings of $14,000 while Webb made...
-
Question 3.3 Explain what a general ledger is, including how it contributes to the financial management of an organisation. (Approximate word count: 130 - 180 words).C
-
A sample statistic will not change from sample to sample. Determine whether the statement is true or false. If it is false, rewrite it as a true statement.
-
Presented below are the consolidated balance sheets and income statements for Tesco, PLC, the worlds third largest retailer, for the years 2016 and 2015. Tesco is based in the United Kingdom....
-
Handy Dan, Inc., operates warehouse-style stores, selling a variety of home building products and lawn and garden supplies. Presented below are Handy Dans historical financial statements for 2014 and...
-
Presented below are profitability ratios for three competitors: Bristol-Myers Squibb (BMY), Pfizer, Inc. (PFE), and Johnson & Johnson (JNJ): Required Compare the relative profitability of the three...
Study smarter with the SolutionInn App