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auditing the art and science of assurance
Energy Audit Of Building Systems An Engineering Approach 3rd Edition Moncef Krarti - Solutions
Any gambling guide should tell you that slot machines are your worst bet. The odds are way against you. To counter this perception and encourage slot machine play, some Las Vegas casinos have begun
We first look for dominant strategies. Since the criminals’ grade in column 2 is always higher than that in a corresponding row in column 1, criminals have a dominant strategy: they prefer to carry
In the United States many homeowners own guns for self-defense. In Britain almost no one owns a gun. Cultural differences provide one explanation. The possibility of strategic moves provides
An established firm in an industry stands to gain by keeping out new competition. Then it can raise prices to monopoly levels. Since monopoly is socially harmful, the antitrust authorities try to
Tell me, my daughters Since now we will divest us both of rule, Interest of territory, cares of state, Which of you shall we say doth love us most?That we our largest bounty may extend Where nature
By raising to 65, you can put the boot on the other foot.The logic is no different when the leading bid is $3.60 and yours is $3.55.If you do not raise the bidding still further, the “winner”
The leader stands to make 40 cents, but you stand to lose your
Professor Martin Shubik of Yale University designed the following game of entrapment. An auctioneer invites bids for a dollar. Bidding proceeds in steps of five cents. The highest bidder gets the
The morning traffic from Oakland to San Francisco across the Bay Bridge gets backed up from 7:30 A.M. to 11:00 A.M. Until the jam clears at 11:00, each additional car that enters the traffic makes
King Solomon wanted to find a way to obtain some information: who was the real mother? The two women who possessed the information had conflicting incentives about revealing it. Mere words would not
Hertz and Avis advertise that you can rent a car for $19.95/day. But that car rental price typically leaves out the inflated cost of filling up the tank at the return, often twice the price at the
Chapter 2 introduced games in which players move in sequence and which always end after a finite number of moves. In theory, we could examine every possible sequence of moves and thereby discover the
How can the commanders of an army motivate its soldiers to risk their lives for their country? Most armies would be finished if each soldier on the battlefield started to make a rational calculation
One of the more unusual features of a Vickrey sealed-bid auction is that the winning bidder does not know how much she will have to pay until the auction is over and she has won. Remember, in a
Three antagonists, Larry, Moe, and Curly, are engaged in a three-way duel. There are two rounds. In the first round, each player is given one shot: first Larry, then Moe, and then Curly. After the
As pistols become more accurate, does that change the deadliness of a duel?
When Robert Campeau made his first bid for Federated Stores (and its crown jewel, Bloomingdales), he used the strategy of a two-tiered tender offer. A two-tiered bid typically offers a high price for
Here’s the rub. Any person who made a proposal to change either the membership of the board or the rules governing how membership was determined would be deprived of his position on the board and
Corporations have adopted many new and innovative ways, often called shark repellent, to prevent outside investors from taking over their company. Without commenting on the efficiency or even
While we might never get the chance to skipper in an America’s Cup race, one of us found himself with a very similar problem. At the end of his academic studies, Barry celebrated at one of
One of our colleagues decided to go to a Jackson Browne concert at Saratoga Springs. He was one of the first to arrive and scouted the area for the best place to sit. It had rained recently and the
The inevitable truth about gambling is that one person’s gain must be another person’s loss. Thus it is especially important to evaluate a gamble from the other side’s perspective before
The typical way that authors get paid for writing a book is via a royalty arrangement. For every book sold, the author gets a certain percentage, something like 15% of the list price on hardcover
Recent presidential elections have emphasized the importance of the selection of the vice president. This person will be just a heartbeat away from the presidency. But most candidates for president
Recall our bargaining problem in which a hotel’s management and its labor were negotiating over how to divide the season’s profits. Now, instead of labor and management alternating offers,
The mother of all auctions has been the sale of spectrum for cell phone licenses. Between 1994 and 2005, the Federal Communications Commission raised over $40 billion. In England, an auction for 3G
In this case study, we explore the coordination problem of how the invisible hand allocates (or misallocates) the supply of dentists between cities and rural areas. In many ways the problem will seem
Another friend of ours, Tanya, is an anthropologist. While most anthropologists travel to the ends of the earth to study some unusual tribe, Tanya did her fieldwork in London. Her subject was
The size of the U.S. college textbook market is $7 billion (including course packets). To put that in perspective, the revenue from the movie industry is about $10 billion and all of professional
Parents often face a difficult problem in punishing their children for bad behavior. Children have an uncanny sense of when the parents’ threat to punish may not be credible. They recognize that
The scene is a sushi bar in downtown Tokyo. Takashi and Yuichi are sitting at the bar drinking sake while waiting for their sushi. Each has ordered the house specialty, uni sashimi (sea urchin).
A Nash equilibrium is a combination of two conditions:• i. Each player is choosing a best response to what he believes the other players will do in the game.• ii. Each player’s beliefs are
The Galápagos Islands are the home of Darwin’s finches. Life on these volcanic islands is difficult and so evolutionary pressures are high. Even a millimeter change in the beak of a finch can make
In the 1984 Orange Bowl the undefeated Nebraska Cornhuskers and the once-beaten Miami Hurricanes faced off. Because Nebraska came into the Bowl with the better record, it needed only a tie in order
We think almost everything in life is a game, even things that might not seem that way at first. Consider the following question from the GMAT(the test given to MBA applicants).Unfortunately, issues
Identify the four concerns that management has in establishing internal controls. Explain how each of those four concerns can be part of operational auditing.
Explain why the Auditor General of Canada performs value-for-money audits rather than simply performing financial audits of the various government departments.
For the same PV system characteristics outlined in Problem 9.5, use the LCC analysis method to assess the cost-effectiveness of the PV system compared to the grid-only option (baseline) to constant
John has discovered that his client converted to an integrated set of software packages one month prior to the year end. During the last month of the fiscal year, the client ran systems in parallel.
In addition to payroll, the costs of running Condo-Cleaners.com are web services, telecommunications, cleaning supplies, and vehicle costs. Jim pays most of these costs using his personal credit
What is meant by the term “appropriate disclosed basis of accounting”? How does such a basis differ from GAAP? When is such a basis acceptable?
On February 17, 2010, a public accountant com¬ pleted the examination of the financial statements for Buckheizer Corporation for the year ended Decem¬ ber 31, 2009. The audit is satisfactory in all
The legal environment in which a public accountant in Canada operates is changing. Discuss some of the reasons for the changes.
In late 1998 and early 1999, Your Best Magnets Inc. (YBM) offices in New York and Toronto were raided by the U.S. Organized Strike Force and the Royal Canadian Mounted Police. Records were seized,
Explain the differences among transaction-related, balance-related, and presentation and disclosure- related audit objectives.
The following are seven general presentation and dis¬ closure-related audit objectives (1 through 7) and 10 specific- balance related audit objectives for the audit of payroll and human resource
The existence of risk is implicit in the phrase “in my opinion” that appears in the auditors report. The auditor is indicating that he or she is accepting some risk that the opinion rendered may
How has the escalating role of board members and the audit committee affected corporate governance?
Describe regulatory influences on board members and management. What have been the effects of these influences?
For three organizational structure types (entrepre¬ neurial, bureaucratic, adhocracy), briefly describe the likely characteristics of corporate governance.
Provide five examples of actions that board members could take to support effective ERM.
What is the public accountants goal in auditing corporate governance?
How does the auditor document the assessment of corporate governance?
List characteristics of advanced automated information systems. Define each characteristic and provide an example.
Transom Company builds trucks. It buys components from parts manufacturers and assembles them. The company has three standard models and also designs trucks to unique specifications, in consultation
Turner Valley Hospital plans to install a database management system, Hosp Info, that will maintain patient histories, including tests performed and their results, vital statistics, and medical
It was a typical madhouse time on the night before a payroll run. Some employees were entering time cards; other employees were checking data entry lists to time cards and calling supervisors about
Big Mall Shoe Store Limited is part of a chain of shoe stores across Canada. Each store has standard point-of- sale packaged systems that are used to update sales and inventory. The stores are linked
Describe six ways to promote a culture of honesty and high ethics.
Describe how you would document your fraud risk assessment of a real estate management company.
What matters related to fraud should be communicated to the audit committee?
How does the presence of a whistle-blowing process improve quality control and independence at a public accounting firm?
Trish Mulcahy, a new junior in your office, says that she does not understand why she cannot work on the audit of a company that is a client of your firm and that is owned by her uncle. Trish says
It is your first day in auditing class, and your instructor has explained how grades are going to be earned and recorded. Attendance (worth 5 percent) is going to be tracked with sign-in sheets,
Consider switching from one large chiller (1,000 ton) to four chillers (each rated at 250 ton). Using the normalized savings shown in Figure 8.10, estimate the annual energy savings for using a multi
Determine the actual value of the $10,000 investment for the building owner in Example 3.1 if the economy experiences an annual inflation rate of 4 percent.Example 3.1A building owner has $10,000
If the building owner is in the 28 percent tax bracket, determine the actual value of his $10,000 investment considered in Example 3.1 if the economy experiences an annual inflation rate of 4 percent.
A blower door test on a 30 ft × 50 ft × 9 ft house located in Denver, Colorado, revealed that under a 4-Pa pressure differential between indoors and outdoors, the leakage area is about 200 in.2.a.
Both pressurization and depressurization tests were conducted on a residence. The residence has 950 ft2 (95 m2) of floor area with an average ceiling height of 8 ft. The results of these tests are
For a building with a 200 ft × 100 ft slab on grade floor made up of 4-in. concrete floor:a. Estimate the annual energy ground-coupled loss/gain from the building located in Denver, Colorado.b.
A house located in Denver, CO, has R-11 walls (1,650 ft2), R-19 ceiling(2,000 ft2), and R-2 windows (200 ft2). Assume that the infiltration/ventilation rate is 0.75 ACH.a. Estimate the annual fuel
Determine the SPP for using SIS for walls of a house located in Denver, CO, that has a BLC of 700 Btu/°F·hr. The cost of wall SIS retrofit is estimated to $3.5/ft2 of opaque wall area. The opaque
A utility has the following monthly billing structure for its industrial customers:A power factor clause states that the billing demand, upon which the demand charge is based, shall be the actual
The utility has added a ratchet clause to the rate structure described in Example 2.1 . Specifically, the ratchet clause states that no billing demand shall be considered as less than the 70 percent
i. Calculate the utility bill for a facility during one month characterized by the following parameters:• Actual demand: 450 kW • Energy consumption: 85,000 kWh • Average power factor: 70
The utility has added a ratchet clause to the rate structure described in Example 2.2 . Specifically, the ratchet clause states that no billing demand shall be considered as less than 70 percent of
The monthly energy consumption and peak demand history of a commercial building is shown below for one year.The commercial building is on the rate structure defined in Table Month Jan Feb Mar Apr May
The industrial facility of Example 2.1 has an option of owning and operating its own service transformer with the advantage of reduced rate structure as described below:• Customer charge =
A company consumed about 355,000 kWh of electrical energy during the month of April. The billed demand is estimated to be 600 kW for April. If the sales tax is 7 percent, calculate the electric
A manufacturing company consumes on average 250,000 kWh per month and has a billed demand of 1,200 kW during each month. The company can select between two rates: Rate-1 and Rate-2 (described below).
A utility offers the following rates to its commercial customers:The on-peak season includes the months of June through October. The off-season includes the remainder of the months of any year.The
Using utility rate structure A, calculate the utility bill for a residence during a summer month when the energy use is 800 kWh.
Using utility rate structure B, calculate the utility bill for a commercial facility during a winter month when the energy use is 70,000 kWh, the billing demand is 400 kW, and the average reactive
A company is on the utility rate structure defined as level 1 in Problem 2.5 , In auditing a company, you find it averaged as 65 percent power factor over the past year. It is on the rate schedule
Calculate the utility bills for an industrial customer serviced by OG&E under two rates:i. Conventional rate with the following charges:Customer charge: $150.00 Energy charge: $0.0264/kWh Demand
Using utility rate structure C, calculate the utility bill for a residence during a summer month when the energy use is 2,000 kWh with 55 percent of the energy consumption occurring during the
Calculate the cost savings in electric utility bills for an industrial customer serviced by the OG&E RTP rate used in Example 2.8 if the excess electrical load experienced during the curtailment
Using utility rate structure D, calculate the gas utility bill for a residence during a month when the energy use is 10.4 MMBtu.
Using utility rate structure E, calculate the gas utility bill for a commercial facility during a month when the energy use is 15,000 MMBtu and the billing demand is 500 MMBtu/day.
A building owner has $10,000 available and has the option to invest this money in either (i) a bank that has an annual interest rate of 7 percent or (ii) buying a new boiler for the building. If he
A company is considering the purchase of a new machine that will last eight years and cost $90,000 in the first year, decreasing by $1,000 each year to $2,000 in the eighth year. Determine how much
You want to buy a new machine that will last 20 years and cost $200,000. Determine how much money you should pay for this machine each year based on equal annual payments:a. If the interest rate is 5
An energy audit of a residential heating system reveals that the boiler-burner efficiency is only 60 percent. In addition, the energy audit showed that an electric water heater is used. The house
After finding that the old boiler has an efficiency of only 60 percent, whereas a new boiler would have an efficiency of 85 percent, the building owner in Example 3.1 has decided to invest the
Find the various compounding factors for N = 10 years and d = 5 percent.
An electrical energy audit indicates that the motor control center consumption is 8 × 106 kWh/year. By using high-efficiency motors, a savings of 15 percent can be achieved. The additional cost for
An electrical energy audit indicates that lighting consumes 12.5 × 106 kWh/year. By using more efficient lighting fixtures, electrical energy savings of 8 percent can be achieved. The additional
The building owner in Example 3.5 has three options to invest his money, as briefly described below.A. Replace the entire old boiler (including burner) with more efficient heating system. The old
A residential building is heated with a 78 percent efficient gas-fired furnace (costing $1,600). The annual heating load is estimated at 160 MMBtu. The cost of gas is $6.00/MMBtu. For the discount
A chiller consumes 9.5 × 105 kWh annually with an overall efficiency of 0.90 kW/ton. If this chiller is replaced by a more energy-efficient chiller (0.75 kW/ton) at a cost of $95,000, determine the
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