booster Banks case

Analyze this case using a strategic perspective. In your answer cover the following:

a. Look at this case from the standpoint of the auditors and from your own (Nora

Lopezs) standpoint.

In preparing a report lor your supervisor at Booster Bank, incorpotate answers to the questions. below. Q.1. Did Dash Spencer, LLP owe a duly of care to the Bcoster Bank? Q.2 Assuming Dash Spencer LLP ewed a duty of care to the Booster Bank, dd Dash Spencer, U.P breach that duty of care? In delermining whether breach occurred, make sure to perform the following accounting analysis: a. Recreate the journal entry that Circult Board Framework (CBF) made when it sold the stock to Easy Exchange. How much gain was recognized on the sale of the slock? How much casth inflow did this transaction croato for CEF? b. Calculate the present value of the note receivable using a 15% interest rate. Using the present value of the note as the only economic benefit received, recalculate the gain or loss on the transaction. Q.3 Assume Dash Spencer, LLP breached the duty of care owed to the Bocster Bank. Were damages sustained by the Booster Bank caused by Dash Spencer's breach of the duty of care? In answering the question do the following: (a) correct the 2018 income statement using the analysis in question 2 above: (b) perform ratio analysis on the four year's income (as originaly stated and then after your corrections in requirement a) io determino if the firm actually had a patiern of income stabifity. Caloulate standard profitability ratios (Reburn on Sales, Gross Profit Margin, Earnings per share, plus any other analysis you wish to perform.) Q.4. In this case, there were many people who had to deal with ethical issues. Analyze the issues faced by Logan Wright, Ryan Waker, and Jasmine Young, and indicato the following for each. a. Were their actions etricar? In each case indicate which principle or tost of echics. you are applying to decermine your answor. b. Indicate whether you think their actions were justified or not given the circumstances they were faced with. You may want to review section 53.01 of the A.CPA Code of Protessional Ethics. (You can review the section in the case library. Q. 5. Anayze this case using a strategic perspectve. In your answer cover the following. a: Look at this case from the standpoint of the auditors and from your own (Nore Lopez's) standpoint. b. Knowing what you know now, which strategic prineiples would you say were ignored or misunderstoed by the auditors and yourseit