QUESTION 1 10 points Mohamed Hussein works at the National Bank branch in Abu Dhabi. According to the bank's records, there is currently an outstanding loan of $380,000 to Wathba Bus Services company, which runs bus trips between Abu Dhabi and other UAE cities. The company recently missed a loan payment (did not pay one of the loan payback installments), and Mohamed is becoming concerned about whether Wathba will be able to repay the full amount of the loan According to the documents beld by the bank, the collateral on the loan (security for the loan) consists of 20 large buses. Each bus had an average estimated value-af the time of loan agreement signing of $25,000. As part of his investigation of the company, Mohamed wants to make sure that these buses still represent good security for the remaining amount unpaid of the loan. Mohamed decides that the best way to handle the situation would be to hire an auditor to test the buses. He, therefore, engages (vires) the services of Hazaa Auditing Firm to do this job for the bank. Mohamed knows this auditing firm has an extensive background in auditing automobile, bus, and Trucking companies. Mohamed gives Hazaa firm the buses' registration information, which was provided to the bank when the original loan documents were signed. He then asks Hazaa to investigate the company and write a report that includes the following information: 1. Which of the 20 registered buses is parked in Wathba's parking depot (the company's warehouse area) on the night of August 31, 2008. 2. If Wathba Bus Services actually owns the buses or is responsible for maintaining them. 3. The physical condition of each bus, using the guidelines: poor, good, and excellent. 4. The fair market value of each bus, using the current "UAE system of pricing" for buses, which estimates the approximat vholesale prices of all used bus models, using the poor, good, and excellent conditions guidelines. yricu, ne unen asks Hazan to investigate the company and write a report thet includes the following Information: on, which was provided to the bank when the original loan documents were 1. Which of the 20 registered buses is parked in Wathba's parking depot (the company's warehouse aren) on the night of August 31, 2008 2. If Wathba Bus Services actually owns the buses or is responsible for maintaining them. 3. The physical condition of each bus, using the guidelines: poor, good, and excellent 4. The fair market value of each bus, using the current "UAE system of pricing" for buses, which estimates the approximate wholesale prices of all used bus models, using the poor, good, and excellent conditions guidelines. Required: Explain in as much detail as you can your answer to the following questions with reasons. Giving a short answer only, will not be considered a full answer A Explain which Generally Accepted Accounting Principle GAAP) each one of the requirements the GAAP in the accounting framework. Sahk asks for, refers to? In other words, confect each of the bank questions above to one of the 8. Explain which management assertion each one of the requirements the bank asks for, refers to? I other words, connect each of the bank questions above to one of the management assertions. c. Using the facts given in this case, explain the need for the Auditing profession. For the toolbar, press ALT+F10 (PC or ALT FN F10 (Mac). BIUS Arial T: Paragraph 10pt OG Q5 According to the documents held by the bank, the collateral on the loan (security for the loan) consists of 20 large buses. Each bus had an average estimated value-at the time of loan agreement signing of $25,000. As part of his investigation of the company, Mohamed wants to make sure that these buses still represent good security for the remaining amount unpaid of the loan. Mohamed decides that the best way to handle the situation would be to hire an auditor to test the buses. He, therefore, engages (hires) the services of Hazan Auditing Firm to do this job for the bank. Mohamed knows this auditing firm has an extensive background in auditing automobilo, bus, and trucking companies. Mohamed gives Hazaa firm the buses' registration information, which was provided to the bank when the original loan documents were signed. He then asks Hazaa to investigate the company and write a report that includes the following information: 1. Which of the 20 registered buses is parked in Wathba's parking depot (the company's warehouse area) on the night of August 31, 2008. 2. If Wathba Bus Services actually owns the buses or is responsible for maintaining them. 3. The physical condition of each bus, using the guidelines: poor, good, and excellent. 4. The fair market value of each bus, using the current UAE system of pricing" for buses, which estimates the approximate wholesale prices of all used bus models, using the poor, good, and excellent conditions guidelines. Required: Explain in as much detail as you can your answer to the following questions with reasons. Giving a short answer only will not be considered a full answer. A Explain which Generally Accepted Accounting Principle (GAAP) each one of the requirements the bank asks for refers to? In other words, conrfect each of the bank questions above to one of the GAAP in the accounting framework. Explain which management assertion each one of the requirements the bank asks for refers to in other words, connect each of the bank questions above to one of the management assertions. c. Using the facts given in this case, explain the need for the Auditing profession. ALTAITEI According to the documents held by the bank, the collateral on the loan (security for the loan) consists of 20 large buses. Each bus had an average estimated value-af the time of loan agreement signing of $25,000. As part of his investigation of the company, Mohamed wants to make sure that these buses still represent good security for the remaining amount unpaid of the loan. Mohamed decides that the best way to handle the situation would be to hire an auditor to test the buses. He, therefore, engages (hires) the services of Hazaa Auditing Firm to do this job for the bank. Mohamed knows this auditing firm has an extensive background in auditing automobile, bus, and Trucking companios. Mohamed gives Hazaa firm the buses registration information, which was provided to the bank when the original loan documents were signed. He then asks Hazaa to investigate the company and write a report that includes the following information: 1. Which of the 20 registered buses is parked in Wathba's parking depot (the company's warehouse area) on the night of 2. If Wathba Bus Services actually owns the buses or is responsible for maintaining them. 3. The physical condition of each bus, using the guidelines: poor, good, and excellent. 4. The fair market value of each bus, using the current "UAE system of pricing" for buses, which estimates the approximate wholesale prices of all used bus models, using the poor, good, and excellent conditions guidelines. Required: Explain in as much detail as you can your answer to the following questions with reasons. Giving a short answer only, will not be considered a full answer Explain which Generally Accepted Accounting Principle (GAAP) each one of the requirements the bahk asks for refers to? In other words, confect each of the bank questions above to one of the GAAP in the accounting framework. a. Explain which management assertion each one of the requirements the bank asks for, refers to? In other words, connect each of the bank questions above to one of the management assertions. c. Using the facts given in this case, explain the need for the Auditing profession
