Case 8.2 Northwest Bank Developing Expectations for Analytical Procedures Analytical procedures are used for many purposes‚ such as to understand the clients industry or business‚ assess the entity’s ability to continue as a going concern‚ and to indicate the presence of possible misstatements. The audit approach for Northwest Bank calls for the audit team to gain assurance on the fairness of loan interest income primarily through the performance of analytical procedures. Additional detailed
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Test Bank for Chapter 4 Problem 4-1: Work through the simplex method (in algebraic form) step by step to solve the following problem. Maximize Z = x1 + 2x2 + 2x3‚ subject to 5x1 + 2x2 + 3x3 ≤ 15 x1 + 4x2 + 2x3 ≤ 12 2x1 + x3 ≤ 8 and x1 ≥ 0‚ x2 ≥ 0‚ x3 ≥ 0. Solution for Problem 4-1: We introduce x4‚ x5‚ and x6 as slack variables for the respective functional constraints. The augmented form of the problem then is Maximize Z = x1 + 2 x2 + 2 x3‚ subject to
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Executive Summary Commerce Bank has been a pioneer in the banking industry by returning to customer service. This has driven customers to the bank‚ but in order to stay ahead on the curve they want to move away from the model that has worked for them. An analysis was performed regarding whether their new concept of “retailtainment”‚ entertaining customers throughout the banking service process‚ would be beneficial or not. After thorough consideration‚ it was determined that “retailtainment”
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Pilgrim Bank Case ‐ Group 5‚ Section D The 95 percent confidence interval is (Z = 1.96) (n =31634) (σ = 272.84) 108.496 < Population Mean < 114.5094 The variation of the mean is not very large (+-3.01)‚ so sample mean can be assumed to be representative of population mean. Number of offline users: 27781‚ x1 = 110.79‚ σ1 = 271.301 Number of online users: 3853‚ x2 = 116.67 σ2 = 283.66 Z = (x1-x2)-(µ1-µ2)/Sqrt(σ12/n1+σ22/n2) Null Hypothesis: µ1= µ2 Alternative Hypothesis: µ1 =! µ2 Z = -1.212 and Z-critical
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Case 4: Aaron Jones‚ CPA‚ is auditing the current year’s financial statements of Low Company‚ a publicly traded company. Aaron notices some major fluctuations in Low’s fourth quarter of the previous year’s financial statement balances. He is aware that security holders of publicly traded company stock that does not separately report fourth quarter results often “impute” such results by subtracting data based on third quarter interim balances from the year-end balances. Thus‚ companies should report
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Keystone Pipeline Project The United States is a fossil fuel hungry nation whose economy‚ markets‚ and transportation is highly dependent on the abundance of crude oil and petroleum. Although there is roughly 85.9 billion barrels of undiscovered technically recoverable crude oil currently in the form of oil shale located beneath our soil‚ we still rely on imports from foreign countries. With a crude oil and petroleum product net import of 7‚270 thousand barrels per day the United States is one
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If the Keystone XL pipeline is built‚ thousands of creatures may relocate or die because of it. The Keystone pipeline is a real pipeline that will transport thousands of gallons of crude tar sands oil a day from Canada to the southern United States. It may leak and cause the environment to be hurt. Many people believe that it will benefit the United States and Canada in many ways‚ but many people believe the other side of it and think it should not be built because of the risks. It has many benefits
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Ch 3-4 3400 Fall 2014 Name Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. During this year‚ Marvin had the following transactions: Salary Bank loan (proceeds used to buy personal auto) Alimony paid Child support paid Gift from aunt $50‚000 10‚000 12‚000 6‚000 20‚000 Marvin’s AGI is: a. $32‚000. b. $38‚000. c. $44‚000. d. $56‚000. e. $64‚000. ____ 2. During this year‚ Sarah had the following transactions:
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Case 3-51 Pages 115 -117 1. Why might Koss management have placed so much trust in Sachdeva‚ along with minimal supervision and monitoring? Koss management might have placed so much trust in Sachdeva because she was is such a high position. She worked in the company as Vice President‚ when you are that high on the totem pole‚ you are given trust that you know what you are doing and that you want what is best for the company. Companies don’t hand out positions to people that
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merger of U.S. Citizen Bank and Louisiana Purchase Bank (LPB) in 1998 resulted in a formation of a financial powerhouse possessing core competencies in commercial lending and innovation. Upon recognizing the much needed annuity-driven market potential existing within the U.S. college population‚ the LPB pioneered the student credit card program in 1989. Indeed‚ the student credit card program proved to be more profitable with net income margin around 6 percent compared to that of 4 percent for non-student
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