All the information for the question is added. There are 7 parts, please select the correct information!
The client should include a note in the financial statements for this transaction specifically because Choose an option below: [Original Text] the amount of the transaction was significant. the transaction was with a related party. the transaction involved the purchase of land. the transaction involved the Chief Financial Officer. the transaction was documented in the minutes of a board of directors meeting. Choose an option below: [Original Text] an actual parcel of property was purchased. the land is fairly stated at the recorded amount. the amount paid for the land was $3 million. Langford Trobridge owned the property that was purchased by ABC Co. the loan amount may be less than the recorded amount. 3. An issue that we should investigate is why the bank loaned only $2 million Choose an option below: [Original Text] why the bank loaned only $2 million for the purchase. the motivation for the sale of property by Langford Trobridge to ABC Co. whether the difference between the cost of $3 million and the actual fair value of the property should be recorded as goodwill. how long Langford Trobridge has been a member of the board of directors. Scroll down to complete all parts of this task. You are part of the tearn auditing ABC Co., a nonissuer. You have been asked to identify your concerns relative to a transaction for the purchase of land that the client has recorded on July 1 of the current audit year. You have prepared a preliminary document addressed to the audit team based on information included in the exhibits above. Review and revise the document as necessary before sending it to the rest of the audit team. To revise the document, click on each segment of underlined text below and select the needed correction, if any, from the list provided. If the underlined text is already correct in the context of the document, select [Original Text] from the list. If removal of the underlined text is the best revision to the document, select [Delete Text] from the list if available. [Original Text] If we determine that a qualified opinion must be expressed because this transaction is not fairly recorded, we should identify the member of the board in the opinion if (s)he is the cause of the qualification. If we determine that a qualified opinion must be expressed because this transaction is not fairly recorded, we should identify the member of the board in the opinion whether or not (s)he is the cause of the qualification. If we determine that a qualified opinion must be expressed because this transaction is not fairly recorded, we should identify the Chief Financial Officer in the opinion if ( s )he is the cause of the qualification If we determine that a qualified opinion must be expressed because this transaction is not fairly recorded, we should identify the Chief Financial Officer in the opinion whether or not (s)he is the cause of the qualification [Delete Text] 6. ABC should record an entry for the audit year to Choose an option below: [Original Text] debit notes payable. debit interest payable. credit depreciation expense. credit amortization of land. debit interest expense. 5. To gather the best evidence about the fair value of the land, we should obtain a written confirmation from First Financial Bank that the collatera for the loan is the land.. Choose an option below: [Original Text] a written confirmation from First Financial Bank that the collateral for the loan is the land. a written confirmation from the Chief Financial Officer that the appraisal of the land is at least $3,000,000. an appraisal report by an auditor-engaged specialist. tax records from the county in which the land is located. To: Audit Team From: Team Member The following are concerns relative to the land purchase on July 1 : 1. I have personally inspected the land and believe that the greatest risk related to the purchase transaction is most closely related to the existence assertion. Entry abstracted from the client's general ledger for the acquisition of land during the audit year Memo from ABC Co, to the Auditor As we have discussed, our firm purchased land (identified in the legal description) on July 1 of this year with an estimated fair value of over \$3 million. The property was recorded at the cost of \$3 million and represents a material amount of our assets The purchase was partially financed with a term loan of $2 million at 5 interest from First Financial Bank. A lump.sum payment in full of principat and accrued interest is due in 5 years. The amount of $3 million was paid to Langford Trobridge. Minutes Excerpt Part of the minutes from the ABC Co:s board of directors meeting As a member of the Board of Directors. 1 Langford Trobridge believe ABCs purchase of property (identified in the legal desctiption) from me is in the best inteteste of the Company ABCs Chiel Financial Officer appraised the propecty at a minimum of $3 milion The purchasef of the land was upp ored by the board by a vole of 3102
