Case Study 3 a) What events or condition above may cause substantial doubt about the entity’s ability to continue as a going concern? Events or condition that may cause substantial doubt about the entity’s ability to continue as a going concern are the first one‚ because of the high competition in the industry‚ it has affected the sales of the Fast Go. The effect of vigorous competition in the markets has makes it difficult for Fast Go to attract and retain customers and to grow their customer
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show that the loss suffered by the claimant was reasonably foreseeable. In the case of Hedly Byrne and Co vs Hedler and Partners Ltd‚ where there was a special relationship between parties‚ there could be a duty of care for financial loss caused by a negligent misstatement. However‚ there was a valid disclaimer as the advice given by Heller was headed without responsibility and the defendant was not liable. In this case‚ Aiman & Co were not liable since there is no special relationship between parties
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with the SEC; the partner still has to follow the professional code of conduct that is integral to his profession and the public’s trust in it. 2. There are numerous procedures that an audit firm must perform before accepting an audit client: a. Firstly‚ review the reason why the company is looking for a new auditor or why it needs to start being audited. b. Review business structure of the client (look for red flags) c. Review client’s past history‚ including its legal history‚ tax problems
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Project case study You have been presented with a case study based around the business "New Century Health Clinic" which is not a computerized company. They are thinking to be computerized; now your job is to do the feasibility study to find out whether or not to go for computerization. Before you start your report‚ you need to read provided case study thoroughly. Case study background: NCHC is currently having problems in its office administration area and are seeking solutions. The office staffs
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2. Business processes are specific sets of results‚ transactions‚ and events that can be documented and described. There are several business processes that take place at New Century Health Clinic. Fred Brown is responsible for office payroll‚ tax reporting‚ and profit distribution. Susan Gifford does her part by maintaining the patient records for the clinic. Tom Capaletti handles the majority of the paperwork regarding insurance reporting and accounting. Lisa Sung’s primary role is managing
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result‚ they forced the repurchase policy of many mortgage agreements‚ and let the subprime lenders to take over their houses. Subprime lender like New Century became the bankrupt because of the high lost associate with the mortgage cancelation. To maintain earning‚ the management modify the estimate of its reserve. However‚ KPGM‚ the auditor of the New Century is question of their work. KPMG lost its independence due to its afraid of lost business. 1. The advantages include better understanding of the
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Overview New Century wants to develop an information system that supports the clinic’s operations and future growth. The clinic is located near a new shopping mall in a busy section of the city. Its staff includes four doctors‚ three registered nurses‚ four physical therapists‚ and six office staff workers. It has a base of 3‚500 patients from 275 different employers. By which many is provided insurance coverage for its employee wellness and health maintenance. Currently‚ New Century accepts 34
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Regina for the period 1986 to 1988. Also‚ compute key liquidity‚ solvency‚ activity‚ and profitability ratios for the years 1987 and 1988. Given these data‚ identify what you believe were the high-risk financial statement line items for the 1988 Regina audit. I computed the ratios for 1986 as well as the required 1987 and 1988. The most interesting occurrence is how the values for the growth were not translated in the ratios. As sales increased‚ cost of goods sold decreased. This would indicate that
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The New Century Health Clinic’s current information system is inadequate for its users and woefully out of date. It has been agreed that a new information system should be created in the original’s place. This system must meet the needs of the users in the clinic and must be done in a way that will reduce costs and inefficiencies. This document will establish the needs that will need to be met by this new system. The current workforce of New Century Health Clinic is 17 people including 6 office
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Audit & taxation | Audit Risk in the Brave New World | Audit Risk Model | | | 6/27/2010 | Submitted To: MR. Asim Khan Submitted By Bilal Khalid INTRODUCTION The audit risk model has provided a conceptual framework for auditing practice for more than 40 years. Despite practical difficulties in implementation and criticisms of its theoretical foundation‚ the model has been fairly effective in helping auditors analyze risks and use that analysis to determine the nature‚
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