Case 8.11 Societe Generale Grade 40/40

According to an article in the CPA Journal, the accounting profession has long contended that an audit conducted in accordance with generally accepted auditing standards (GAAS) provides reasonable assurance that there are no material misstatements contained within financial statements. Suggest at least two (2) alternative methods that auditors can use to provide a more concrete level of assurance to investors. Provide support for your responses with examples of such methods in use.

In September 2002 the IASB and the FASB agreed to work together, in consultation with other national and regional bodies, to remove the differences between international standards and US GAAP. (Dorata, 2008) However, the convergence of IFRS and FASB is coming to the end. (Golden, 2013)

ACTIVITY 1 – Briefly discuss the 4 different methods of determining Scope 1 Emissions and why the first method is most appropriate for QEH.

Direct Drugs Inc. (Direct) has created a plan for the acquisition of SolvGen Inc. (SolvGen), which is a publicly owned company. Direct has engaged an audit team to review agreement and procedures dealing with two separate material agreements. The first agreement is a research and development agreement and the second is a licensing and distribution agreement. The contract states that SolvGen entered into a five year research and development agreement with Careway Pharma Inc. on January 1, 2010. The agreement

4. What inventory method is used to value inventories? Does this method reflect current cost at year-end?

This programme accentuates the enhancement of the CA (SA) professional by persistently developing the standards governing the CA (SA) profession. The programme also focuses on legal and corporate governance; which aim at aligning social and economical standards; secures that the CA (SA) profession is accountable and affiliated with the interest of individuals; corporations and the society (South African Institute of Chartered Accountants, 2014). These regulations also safeguard the use of the accounting standards, as will be inspected in the succeeding

Because each product has a different contribution margin percentage, the volume required for each break-even point would be different and will not add up to the company’s overall break-even volume of 1,100,000 units; the overall break-even volume assumes that there is only one contribution margin percentage which is :

In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A “proven, independent due process” is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d).

An act to amend Virginia code 20-124 paragraph two, point three and subsection F of 63.2-1202 in regards to subsection A of 18.2-61 to apply not only to convicted persons but also to an accused person when there is clear and convincing evidence of rape (Definitions; Megison; Rape; Parental, or agency, consent required; exceptions).

The AICPA published the generally accepted auditing standards (GAAS). GAAS are those guidelines which auditors must follow while conducting an audit of a company's financial statements. It must also be stated in the audit report that the audit was conducted following GAAS.

Rue 21 is one of the many retailers that are geared towards teens, however what set them apart from the rest is their affordability. This company strives to keep all of its merchandise under 35 dollars. Rue 21 has locations in various strip malls with 52 percent, regional mall 31 percent and outlet centers 17 there are pros and cons that affect the company for each of them (Berman, 2009). Having this store in a strip center can be a really great thing for consumers put not such a positive thing for the company as a whole. The positive to a strip mall is that it is easily accessible for customers to find and shop at the location. Strip malls have less congestion when it comes to parking, which makes for a more pleasurable for shoppers like

This case discusses Cross-Border valuation of projects. This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very slow in taking initiatives as compared to its competitors owing to the recent recession. But the management of the company believes that better durability and lower after-sales service costs of their products enable

This case discusses Cross-Border valuation of projects. This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very slow in taking initiatives as compared to its competitors owing to the recent recession. But the management of the company believes that better durability and lower after-sales service costs of their products enable the company to build customer

As Star River is a private company and has not issued stock, we need to make several assumptions when calculating market value of equity and price of equity. Analysis of similar companies reveals that Wintronics, Inc. and STOR-Max Corp. are the most similar firms in the market. To calculate Star River’s market value of equity I used market to book value method. I found M/B for Wintronics to be 4.4 (market price per share/book value per share) and 3.9 for STOR-Max. an average M/B ratio is 4.15, so multiplying Star River’s book value of equity of 47004 by 4.15 I found Star River’s market value of equity to be SGD195,066.6M. Average beta of these two companies is 1.615. The global equity market premium is 6%, and I use 10 year Singapore T-bond yield of 3.6% as my risk free rate.

Global accounting standard setter joined hands to work in a coordinated manner to achieve the goal of creation of single set of accounting standards. Thus, IASB and FASB in response to the issues arisen due to the financial crisis started development of new set of standards. They decided to replace IAS 39 by and built and sub divided the project into three phases: