Part A
You are the audit senior at Best Accountants and are conducting the audit of Revglow Ltd for the year ended 30 June 2021. The audit assistant, Tanya Robinson, has just completed testing of the depreciation of property, plant and equipment (PPE). An extract from her audit working papers is as follows:
Profit before tax
$2,737,000
Property, plant and equipment
$16,564,000
In testing depreciation, Tanya selected a sample of 35 items with a value of $1,672,000. She established a tolerable error 5% of base values. The results of the tests showed systematic errors in the sample of $72,400.
Based on the results, Tanya has concluded that this is an acceptable error and no further work is required.
Required:
Identify and explain two (2) reasons why Tanya's conclusion is incorrect
D Question 16 1 pts Who is the plaintiff in this case? O Anne Taintor, Inc. O The People of New Mexico O Veronica Vigil D Question 17 1 pts Who is the defendant in this case? O The People of New Mexico O Anne Taintor, Inc O Veronica Vigil D Question 18 1 pts What kind of case is this? O Not enough information to tell O State court O Federal courtPhoto on Flask The Huffington Post, posted 1.7.15 SANTA FE, NM (AP) A New Mexico woman is suing a novelty products maker over a flask that includes her likeness and the phrase, "I'm going to be the most popular girl in rehab." Veronica Vigil alleges in her federal court lawsuit that Anne Tainter, Inc, obtained and used her high school graduation picture from 1970 without her permission. The lawsuit says the Brooklyn, New York-based company then defamed Vigil by linking her image to a product that makes light of substance abuse. Court documents say the Chimayo, New Mexico resident is an active church member and doesn't consume alcohol or drugs. Vigil claims unspecified damages for injury to her reputation. A pokeswoman for Anne Taintor, Inc said the company does not comment on pending litigation. D Question 14 1 pts What kind of case is this? O Civil O Not enough information to tell O Criminal D Question 15 1 pts What kind of case is this? O Public O PrivateQUESTION 1 17.1 Change orders in government language are called what? O Changes O Submittals O RFI'S O Modifications QUESTION 2 17.5 Many model contracts include the following options for claims resolution: O Negotiation, mediation, arbitration, and litigation O CM negotiation, architect's judgment, and litigation O CM negotiation, owner's decision, and litigation O Force work account, then negotiated resolution at job closeoutQuestion 1 An express warranty promises: A. A performance outcome. O B. Implied fitness of the good or service for a particular purpose. O c. That the project will be completed on time. O D. That no construction worker will be injured on the project. Question 2 Responsibility for a construction defect rests with the: A. Property owner. O B. Inspector who failed to catch the construction defect at the time of inspection. O c. Party who exercised control over the process. O D. Party with the broadest insurance coverage. Question 3 The Spearin Doctrine consists of the following components: A project which is delayed due to the architect taking too long to process RFI's O A (Requests for Information) B, A project which costs more than projected, and which has insufficient insurance or bonds to cover the damages. c. A project which has defects in construction design which the contractor was able to correct during the construction process, avoiding damage to any party. The owner's issuance of design specifications, misrepresentation to the contractor caused by a defect in those specifications, and injury in the form of the contractor's O D. inability to perform the work successfully. Question 4 On a typical design-bid-build project, the owner is: A. The party with the most money. O B. Responsible for the design, and the contractor is responsible for execution of the design. O c. The party who hires the inspector. D. The party who has the best attorneys. Question 5 Residential construction defects have sparked legislation designed to: A Ensure that contingency lawyers cannot solicit claims by homeowners. B. Ensure that all contractors in those states passing such legislation are licensed. o c. Ensure that architects have adequate liability insurance to cover construction defects. o D. Create a system by which defects are remedied without the homeowner having to resort to litigation. Question 6 A way to avoid a substantial amount of construction litigation is to agree by contract which entity is responsible: A For obtaining construction payment and performance bonds. O B. For obtaining insurance. c. For construction defects, whoever caused the defects. OD. . For filing a lawsuit first, in the event of a dispute on the project
