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The following questions deal with liability under the 1933 and 1934 securities acts. Choose the best response. a. Major, Major, & Sharpe, CPAs, are the auditors of MacLain Technologies. In connect...
See AnswerQ: Following are 8 statements with missing terms involving auditor legal liability.
Following are 8 statements with missing terms involving auditor legal liability. 1. Under the Ultramares Doctrine, an auditor is generally not liability for _____ to third parties lacking _____. 2. Th...
See AnswerQ: Under Section 11 of the Securities Act of 1933 and Section 10
Under Section 11 of the Securities Act of 1933 and Section 10(b), Rule 10b-5, of the Securities Exchange Act of 1934, a CPA may be sued by a purchaser of registered securities. The following items rel...
See AnswerQ: Yardley, Inc., is a mid-size company in Oklahoma
Yardley, Inc., is a mid-size company in Oklahoma City. It has been struggling the past few years because chemical products it uses in its agricultural production process increasingly have been deemed...
See AnswerQ: Background On November 20, 2012, Hewlett-Packard (
Background On November 20, 2012, Hewlett-Packard (HP) disclosed that it discovered an accounting fraud and has written down $8.8 billion of the value of Autonomy, the British software company that it...
See AnswerQ: Paul Lewis is the quality review partner on the Richards & Co
Paul Lewis is the quality review partner on the Richards & Co. engagement. He was reviewing the workpapers prior to the December 31, 2015, annual audit when he came across transactions that caused him...
See AnswerQ: In January 2008, it was discovered that William Borchard, who
In January 2008, it was discovered that William Borchard, who handled due diligence for clients of PwC interested in mergers and acquisitions, divulged controversial plans to Gregory Raben, an auditor...
See AnswerQ: Cisco has perfected the art of acquisition strategy. The technology firm
Cisco has perfected the art of acquisition strategy. The technology firm seeks to provide hardware for connectivity, from the internet to mobile networks to entertainment services. The next stage of C...
See AnswerQ: Suppose you become an intern at a local VC firm and are
Suppose you become an intern at a local VC firm and are asked to assist in due diligence on a proposed investment in a telecommunication company. Explain how you would approach such a task and where...
See AnswerQ: Peace Corporation acquired 100 percent of Harmony Inc. in a nontaxable
Peace Corporation acquired 100 percent of Harmony Inc. in a nontaxable transaction on December 31, 20X1. The following balance sheet information is available immediately following the transaction: A...
See AnswerQ: Prepare a search strategy for understanding a due diligence review of a
Prepare a search strategy for understanding a due diligence review of a company. Implement the strategy to find five important items in a due diligence review.
See AnswerQ: Peace Corporation acquired 100 percent of Soft Inc. in a nontaxable
Peace Corporation acquired 100 percent of Soft Inc. in a nontaxable transaction on December 31, 20X1. The following balance sheet information is available immediately following the transaction: Addi...
See AnswerQ: Items (a) through ( f ) relate to what a
Items (a) through ( f ) relate to what a plaintiff who purchased securities must prove in a civil liability suit against a CPA. For each item, determine whether it must be proved assuming application...
See AnswerQ: Gamma is a company that manufactures power tools. Gamma was established
Gamma is a company that manufactures power tools. Gamma was established by Mr Lee, who owns all of Gamma’s shares. Mrs Lee, Mr Lee’s wife, owns a controlling intere...
See AnswerQ: 1. Which of the following statements about due diligence is false
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See AnswerQ: Steven Leber (Leber) was the trustee of the Steven E
Steven Leber (Leber) was the trustee of the Steven E. Leber Charitable Remainder Unitrust (“Trust”) which, at its peak, had assets of $4 million. The Defendant, Paul Konigsberg (Konigsberg), was a cer...
See AnswerQ: The founder, president, and major shareholder of Dewitt Corp.
The founder, president, and major shareholder of Dewitt Corp. recently sold his controlling interest in the company to a national distributor in the same line of business. The change in ownership was...
See AnswerQ: The following questions deal with liability under the 1933 and 1934 securities
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See AnswerQ: A young entrepreneur has just raised $30,000 from investors
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See AnswerQ: The founder, president, and major shareholder of Dewitt Corp.
The founder, president, and major shareholder of Dewitt Corp. recently sold his controlling interest in the company to a national distributor in the same line of business. The change in ownership was...
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Financial acumen may not be every director’s strength but ignorance is no excuse when it comes to understanding company accounts. The former directors of property group Centro found this out the hard...
See AnswerQ: Lance Novak recently acquired Chiefs Loft, a restaurant in an inner
Lance Novak recently acquired Chiefs Loft, a restaurant in an inner city suburb of Brisbane. Past records show the restaurant has generally experienced quite good customer numbers. While conducting hi...
See AnswerQ: Hatfield Industries is a large manufacturing conglomerate based in the United States
Hatfield Industries is a large manufacturing conglomerate based in the United States with annual sales in excess of $300 million. Hatfield is currently under investigation by the Securities and Exchan...
See AnswerQ: Hatfield Industries is a large manufacturing conglomerate based in the United States
Hatfield Industries is a large manufacturing conglomerate based in the United States with annual sales in excess of $300 million. Hatfield is currently under investigation by the Securities and Exchan...
See AnswerQ: Hatfield Industries is a large manufacturing conglomerate based in the United States
Hatfield Industries is a large manufacturing conglomerate based in the United States with annual sales in excess of $300 million. Hatfield is currently under investigation by the Securities and Exchan...
See AnswerQ: Leos Janacek is CEO and controlling shareholder of Mira Products Inc.,
Leos Janacek is CEO and controlling shareholder of Mira Products Inc., a Vancouver-based company listed on the TSX. Mira’s principal business is the manufacture of furniture for small children. The co...
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See AnswerQ: T&E Investor Corporation (TEIC) is a holding company
T&E Investor Corporation (TEIC) is a holding company with wholly owned interests in the travel and entertainment industry. It is listed on the Toronto Stock Exchange and is subject to the reporting re...
See AnswerQ: The management of WPB Ltd. has spent the past year reorganizing
The management of WPB Ltd. has spent the past year reorganizing the company’s business activities. WPB is a service provider to hospitals. Originally the company operated only in Canada, where hospita...
See AnswerQ: What possessed a CEO to hype a product that didn’t work and
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See AnswerQ: The story of Theranos, a company that sought to make blood
The story of Theranos, a company that sought to make blood tests cheaper, is a cautionary tale for Silicon Valley about what can happen when a company fails to develop internal control systems or over...
See AnswerQ: On March 4, 2009, the SEC reached an agreement with
On March 4, 2009, the SEC reached an agreement with Krispy Kreme Doughnuts, Inc., and issued a cease-and-desist order to settle charges that the company fraudulently inflated or otherwise misrepresent...
See AnswerQ: In its own Internal Investigation,1 released on September 8,
In its own Internal Investigation,1 released on September 8, 2010, BP provided its analysis of why the Deepwater Horizon oil rig exploded, precipitating one of the largest oil spills the world has eve...
See AnswerQ: On November 17, 2005, Conrad Black and three other executives1
On November 17, 2005, Conrad Black and three other executives1 of Hollinger Inter- national, Inc., were charged with eleven counts of fraud with regard to payments allegedly disguised as “noncompete f...
See AnswerQ: It was early on a Friday morning in London—7:
It was early on a Friday morning in London—7:15 a.m. on February 24, 1995, to be exact—that the phone call came for Peter Baring from Peter Norris. Baring’s family had been in banking since 1763. They...
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