...STATEMENT AUDITING Answers to Review Questions 1-1 The study of auditing is more conceptual in nature compared to other accounting courses. Rather than focusing on learning the rules, techniques, and computations required to prepare financial statements, auditing emphasizes learning a framework of analytical and logical skills to evaluate the relevance and reliability of the systems and processes responsible for financial information, as well as the information itself. To be successful, students must learn the framework and then learn to use logic and common sense in applying auditing concepts to various circumstances and situations. Understanding auditing can improve the decision making ability of consultants, business managers, and accountants by providing a framework for evaluating the usefulness and reliability of information. 1-2 There is a demand for auditing in a free-market economy because the agency relationship between an absentee owner and a manager produces a natural conflict of interest due to the information asymmetry that exists between the owner and manager. As a result, the agent agrees to be monitored as part of his/her employment contract. Auditing appears to be a cost-effective form of monitoring. The empirical evidence suggests auditing was demanded prior to government regulation such as statutory audit requirements. Additionally, many private companies and other entities not subject to government auditing regulations also demand auditing. 1-3 ...
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...Answers to Questions 1. The substance-over-form principle states that the true economic nature of a transaction should determine how it is reported on a company’s accounting records, rather than its legal form (Donaldson, 1964). This concept aims to undercut certain transactions such as related party transactions that are solely to distort profitability, rather than a true economic transaction between two parties. The auditor is responsible for the review and testing of the client’s accounting records to see that the substance of their transactions are reflected in their records. If the substance-over-form concept is violated and the financial statements are materially misstated as a consequence, the auditor is required to issue an opinion on the client’s financial statements. 2. In accepting large, high-risk audit clients for relatively high audit fees, an audit firm may become overly dependent on this client and revenue stream. The loss of such a client may be so detrimental to the audit firm itself that the behavior of auditors may change completely. Auditors know the risk of losing this client, and may become more flexible during audit engagements. The only way to figure out if such prospective clients be avoided is to process each unique situation, and use professional judgment in deciding whether to take on a client or not. 3. This issues goes back to the substance-over-form concept. The audit should consider whether economic substance was used in accounting for...
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...MINI-CASES | |Question | |Case |1 |2 |3 |4 |5 |6 |7 | | | | | | | | | | |1. Andersen: An Obstruction of Justice? |C.83 |C.83 |C.83 |C.83 |C.83 |B.63 |C.83 | |2. PTL Club—The Harbinger of Things to Come | | | | | | | | |3. GM |11.74 |11.74 |11.74 |11.74 |11.74 |11.74 | | | |12.65 |12.65 |12.65 | | | | | | | | | | | | | | |4. Unhealthy Accounting at HealthSouth |4.64 |4.64 |5.70 |5.70 |C.82 |G.84 | | | | | | | | | | ...
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...Detailed Lesson Plan (Grade 7) 1. Objectives After providing the necessary materials, each student; 1.1 investigates the different types of solutions: -unsaturated -saturated -supersaturated 1.2 performs an actual activity about solubility. 1.3 values the common solutions that can be found at home and can be used in daily living. 1. Learning Tasks 2.1 Topic: Solutions 2.2 Concept: The unsaturated solution has a less amount of solute to be dissolved. The saturated solution can hold no more solute to be dissolved. The supersaturated solution cannot hold more solute. 2.3 Materials 2.3.1 Textbook/Other Reference -Science Grade 7: Matter (K-12 Curriculum), pages 1-16 - http://www.infoplease.com/encyclopedia/science/solution-heat-solution.html 2.3.2 Instructional Materials - video clips, materials enumerated for the experiment and activity sheet. 2. Methodology 3.1 Daily Activities 3.1.1 Prayer/ Greetings Christ Jesus Whom we open our eyes, may you be there; When we open our ears, may you be there; When we open our mouths, may you be there; When we open our diaries, may you be there. Help us to see with your eyes; Help us to hear with your ears; Help us to speak your truth in love; Help us to make time for you… for others… for ourselves. Amen. 3.1.2 Checking of Attendance 3.1.3 Checking of Assignment 3.2 Preparatory Activities 3.2.1 Review Teacher: Class...
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...Osmosis Introduction: Tissues are made up of cells that have the same structure and function. In this experiment osmosis will be measured in a piece of tissue. Water potential can be determined by the changes in dimensions of the tissues when it is placed in solutions of different concentrations. Research Question: What is the effect of sucrose solution on potato cells Hypothesis: Osmosis will increase when the solutions are less concentrated with sucrose Variables: Dependant: Osmosis Independent: Length Materials: 12 large test tubes or specimen tubes with bungs, marker pen, potato chip cutter, scalpel, fine forceps, 3 watch glasses or petri dishes, ruler, 6 labeled beakers one containing 50cm^3 of distilled water and other four containing 50cm^3 of 0.2 mol dm^-3, 0.4 mol dm^-3, 0.6 mol dm^-3 and 0.8 mol dm^-3. Method: 1- Using the potato chip cutter, cut 24 chips from the potato. Cut the chips into 5cm lengths using the scalpel. Be as accurate as possible. Place 4 chips into each of six, labeled test tubes, one test tube for each of the different sucrose solutions. Pour in enough of each respective solution to cover the potato tissue. Put a bung in each one of the test tubes and label this series “potato”. 2- Repeat the method using the apple fruit or turnip root, putting four chips of tissue 5cm long into each of the second series of test tubes. Label these tubes “apple” or “turnip”. 3- Leave the tubes for at least an hour 4- After at least...
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...FUNDAMENTALS OF SURFACE MODES: ¥ COLLOIDS ¥ means ÒglueÓ in Greek ¥ was coined in 1861 by Thomas Graham. ¥ ¥ ¥ ¥ ¥ WHAT IS A COLLOID? usually consists of two phases; one continuous phase in which the other phase is dispersed. Size of particles: larger than the size of molecules and small enough for the dispersed phase to stay suspended for a longer period of time. ¥ No strict boundaries for the size limits. OFFICIAL DEFINITION ¥ In 1903 Wolfgang Ostwald formulated the official definition of a colloid: ¥ a system containing entities having at least one length scale in between 1nm and 1µm. ¥ For smaller particles there is no distinct boundaries between the phases and the system is considered a solution; ¥ for larger entities the particles will fall to the bottom due to the gravitational force, and the phases are separated. 1 2 3 MESOSCOPIC PHYSICS ¥ The particle size is in the so-called mesoscopic range in between the macroscopic and microscopic limits. LARGE INTERFACIAL AREA ¥ One very important quality of the colloids is the large interfacial area between the dispersed and the continuous phases. WHAT EFFECTS HAS THIS? ¥ This means that interface effects and hence the electromagnetic surface modes, are very important for the properties of the colloids. ¥ It costs energy to create this much surface and the particles would clump together if this isnÕt prevented. ¥ Usually the particles are charged and hence repel each other. 5 6 4 Four states...
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...encouraged to ask question/s that is related to this module and that you don’t know the answer to and want it to be answered. The question/s can be answered by anyone in class. The instructor will allow sometime for other students to answer the question/s before contributing. You can post your questions in MODULE 2 forum under the Discussion Forums. Complete Assignment #2. The assignments are posted in the ASSIGNMENTS area of the website. Even though the homework assignments are not to be turned in and graded, you are strongly encouraged to do them to understand the material and to prepare for quizzes and tests. A complete solution to this assignment will be posted on the course website under ASSIGNMENTS on Thursday (Sept 4th). You are encouraged to review the solutions and compare your work to the solution, ensuring that you understand the reasons the solutions appear as they do. You are also encouraged...
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... * Has no secretary The most important problem would be catching the flight for the meeting in Chicago since it’s an emergency and work related. Solutions: Getting work done for the day on the air plane on the way to the meeting. Call the secretary to find out at least some of the info for the meeting. Item#2 Problems: * Internal politicking in the company * Finding someone to replace F.T. Dickenson * Dealing with eliminating his overtime hours The two most important problems would the politicking, because someone else may feel the same way and decide to leave the company too. Also, finding someone to replace him and do his unfinished work in such a short period of time. Solution: Search for a new employee ASAP. Item#3 Problems: * Workers threatening to walk out over a co-worker * 10 votes to dismiss Foreman Edward George The workers are the most important asset to the company, so their interest should be first. Second, you have to figure out what to do about the votes to dismiss Ed George. Solutions: Talk to Ed George about his problems with his co-workers. Hold a meeting and get even more workers involved in the voting process, the take another vote. Item#4 Problems: * Overloading which can result in interruption of electrical power. * Not being reachable for Southern Power Solution: Contact Southern Power ASAP. See if they could come out and help with the problem. Item#5 Problem: * Balancing your work and his until Wednesday ...
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...Name Date Class COLLIGATIVE PROPERTIES OF SOLUTIONS Section Review Objectives • Identify the three colligative properties of solutions • Describe why the vapor pressure, freezing point, and boiling point of a solution differ from those properties of the pure solvent. Vocabulary • colligative properties • freezing-point depression • boiling-point elevation Part A Completion Use this completion exercise to check your understanding of the concepts and terms that are introduced in this section. Each blank can be completed with a term, short phrase, or number. In a solution, the effects of a nonvolatile _______ on the properties of the solvent are called _______. They include _______ point and vapor pressure _______, and boiling point _______. In each case, the magnitude of the effect is _______ proportional to the number of solute molecules or ions present in the _______. Colligative properties are a function of the number of solute _______ in solution. For example, one mole of sodium chloride produces _______ as many particles in solution as one mole of sucrose and, thus, will depress the freezing point of water _______ as much. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Part B True-False Classify each of these statements as always true, AT; sometimes true, ST; or never true, NT. 11. When added to 1000 g of water, 2 moles of a solute will increase the boiling point by...
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... it increases the water movement out of the plant by a process called transpiration. When there is a shortage of water, the guard cells well get smaller and close the stomata, and the transpiration process will move slower. The osmolarity would be tested with solute concentrations ranging from 0.0 M to 0.6 M. The concentrations increased 0.1 M each time and the solute used was sucrose. The goal of this experiment was to determine which concentration had the least effect on the potato after being incubated. This information helped us estimate the osmolarity of the potato tuber tissue. Our group hypothesis is that the osmolarity of the potato will have the concentration with the 0.1 M solution. This hypothesis is based off the predicted outcome that smaller molarity concentrations will have the least effect on the potato. The more solute added to a solution decreases the concentration of water in most cases (Kosinski). The decrease in water concentration would then lead to a lower weight of the potato tuber once it has finished incubating. Methods & Materials: For experiment A you will need the following items: 1 large potato tuber Forceps petri dish razor blade DI water metric ruler 7 250 mL beakers/ or disposable cups balance that weighs to the nearest 0.01g sucrose...
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... The purpose of the experiment was to see how abrasion works and how it affects rocks and minerals with the use of sugar cubes. I measured the mass of all 5 sugar cubes together then placed it in a jar with a lid on and shook it 20 times, as I was shaking the jar my lab partner recorded the mass that was taking with the number of times I shake the jar. After which we drew the shape of the sugar cubes when it was poured out on a paper, then we calculated the percent change. This procedure was repeated 5 times and with each trial the shaking time was increased by 20. After all the calculations was done, we graphed the data. After each trial the size and mass of the sugar cubes reduced, this was due to the pressure put on the jar as we were shaking it. Supposing little pressure was put on the jar, the outcome would have been different and would have shown little abrasion effects on minerals and rock so therefore this made me conclude that, for abrasion to have a greater impact on minerals and rocks the pressure of the water or wind must be strong to push the minerals against each other. Another factor that contributes to how abrasion works could be the amount of space the minerals and rocks have because during the experiment, the sugar cubes pumped into each other and the walls of the jar and since there wasn’t enough space for movement the sugar cubes weathered and reduce in size with the mass decreasing which I believe wouldn’t occur if there were to be enough space for the sugar...
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...The data solute concentration of the egg was found by taking the average percent change in mass for each percent solute concentration used in the lab and putting the data into the graph(Mass vs. Solute Concentration Over 3 Days). According to the data from the class, the solute concentration inside an egg is 25.1%. The egg would be in an isotonic solution at 25.1% solute concentration. This is when the concentration outside the egg is equal with the concentration of water inside the egg. The point of equilibrium is the point at which the trendline crosses the x-axis. At this point, the egg would no longer gain or lose mass. If the concentrations are the same inside and outside the egg, diffusion will not be able to take place. All averages...
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...Analysis of Carcinus maenas ingestion rates Materials and methods Part 1 - Control experiment Two mussels (mytilus edulis) were opened and the mussels inside cut into 4 pieces, producing 8 pieces of roughly equal size in total. A balance was then tared with a weighing boat placed on it. Each piece of mussel flesh was placed individually and in turn into the weighing boat to be weighed. The pieces were then placed into a plastic bucket half filled with filtered seawater. The weight, time of weighing and time of immersion into the bucket were all noted down for each piece of mussel. The position of each piece of flesh inside the bucket was also taken down so as not to mix them up. One of the eight pieces was left in the bucket for the duration of the experiment until being removed and weighed at the end and was written down as “the last”. Another piece was removed frequently throughout the experiment and was given the name “the one”. The last 6 pieces were each removed once and weighed at regular intervals to provide a range of submersion times. The experiment was run for roughly 20 minutes. The method for removing and weighing the pieces of mussel was kept consistent throughout the experiment. Each piece was removed, blotted clear of any excess water and weighed. If the piece of mussel was “the one”, it was returned to the bucket of seawater, if not, it was kept aside and moist for the crab feeding (Part 2). Once all of the pieces were removed and weighed (multiple times for “the...
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...Salt of Sugar: Which One Dissolves Faster in Different Liquids Salt and sugar are used in many different ways. They are different in taste and purpose. Salt is use to make foods and vegetables saltier. Sugar is used to make food, candy, and fruits sweeter. Salt and sugar are also used in drinks (mostly sugar). So to find out which one dissolves faster, they will be in different liquids in different temperatures. Hypothesis: sugar will dissolve faster than salt. The liquids used are tea, water, and club soda. These liquids should have a different taste, color, odor, and purpose (O’Leary, Shelly, 91). Water molecules take up most of the room in the container (O’Leary, Shelly, 88). A solution is a mixture of a solute and solvent (O’Leary, Shelly, 88). During the experiment, keep a cup of plain liquid to compare (O’Leary, Shelly, 93). Nancy K O’Leary and Susan Shelly stated, “If you use mile or orange juice, for example, you won’t be able to watch salt and sugar dissolve,” (O’Leary, Shelly, 91). All liquids must be clear (O’Leary, Shelly, 92). Water is a solvent (O’Leary, Shelly, 90). BodnerResearchWeb.com stated, “Sugar dissolves in water because energy is given off when the slightly polar sucrose molecules form intermolecular dons with the polar water molecules.” (Bodner Research Web). The different temperatures are boiling (warm), cool, and room temperature. All of the liquids must be in the same temperature, or temperature will have to be used as...
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...headlines for each of the following lessons. Make sure that the headline is school appropriate, relevant to each lesson, and cited using MLA format. Lesson 1: Introduce the environment. Lesson 2: Identify the problem. Lesson 3: Identify the solutions. (What tools are available to perform the project?) Lesson 4: Evaluate the solutions. (If there are assumptions, what are they?) Lesson 5: Evaluate the ethical and social issues. (What ideas are compatible or incompatible with the problem and solutions?) Lesson 6: Propose the best solution. Lesson 7: Conclude your project experience. B. Write one paragraph for each of the above lessons. The lessons are directed to someone who has no experience in the field. Each lesson should be completed by the assigned due date. One Time Development: (This is a combination of the ongoing task.) A. In a term paper format (two+ pages), provide a formal proposal for the project analyzing the following (bring together all the lessons you worked on throughout the course): 1. The Problem 2. The Solutions Identified 3. The Solutions Evaluated 4. The Ethical and Social Issues 5. The Best Solution B. This paper will be traded with one assigned group member after receiving my feedback for editing improvements. Each student will read the assigned proposal, name 3 positive comments, ask 3 questions, and give 3 recommendations for their classmate. C. The final...
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