chahar1aug87

chahar1aug87

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chahar1aug87University of Delhi - DU

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Project Management3History19Law2Management1English36Philosophy8Anthropology2Astronomy1Business5Science13Sociology2Geography1Nursing3Psychology3Communications1Algebra31Precalculus1Engineering1Geometry3Computer Science20Accounting26Calculus12Biology15Mathematics8Statistics37Physics7Finance11Economics5Chemistry39
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Case Study


Richard J. Rathman and the firm of Bernstein & Rath- man, An Accountancy Corporation, were subject to disciplinary action for the willful failure to comply with professional standards, the Accountancy Act, and California Board of Accountancy Regulations by:
a. repeated acts of negligence in their performance of an audit of a 401 (k) profit-sharing plan for years ending December 31, 2011, and 2010;
b. departing from professional standards because they did not perform the audit in accordance with GAAS;
c. audit documentation that did not contain sufficient documentation to enable a reviewer with the relevant knowledge and experience, having no previous connection with the audit engagement, to understand the nature, timing extent, and results of procedures performed, evidence obtained, and conclusions reached, and to determine the identity of the persons who performed and reviewed the work;
d. reporting on a Peer Review Reporting form dated September 25, 2014, that the highest level of accounting and auditing services provided in the previous three years was a compilation with disclosures when they had issued September 6, 2012, auditor's report for the Department of Labor; and
e. obtaining an Engagement Peer Review when they should have obtained a System Peer Review.

They were put on probation with the following terms:
a. After 3 years' probation, both Rathman and his corporation are prohibited from performing audits, reviews, or other attestation services un- less they petition for reinstatement.
b. Complete and provide proper documentation of twenty-four hours of continuing education in the subject matter of compilations.
c. Complete four hours of continuing education in ethics.
d. Complete an approved Regulatory Review course.
e. Be subject to peer review by a Board-recognized peer review program,
f. Reimburse the California Board of Accountancy $7,093 for its investigation and prosecution costs.

Case Study Questions
1. What sections of the California Accountancy Act and Regulations did the firm violate?
2. How would you advise them to ensure that they comply with the rules in the future?

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Use the standard normal distribution or the distribution to construct a 90% confidence interval for the population mean. Justify your decision. If neither distribution can be used, explain why. Interpret the results. In a recent season, the population standard deviation of the yards por carry for all running backs was 1.28. The yards por carry of 25 randomly selected running backs are shown below. Assume the yards per carry are normally distributed 1.9 7.1 26 7.3 26 44 62 29 21 6. 1 59 62 Which distribution should be used to construct the confidence interval? O A. Une a normal distribution because n<30, the data are normally distributed and is unknown OB. Use at distribution because n < 30 and an is known OC. Use a t-distribution because n < 30 and is unknown OD. Use a normal distribution because is known and the data are normaly distributed O E. Cannot use the standard normal distribution or the distribution because o is unknown, n<30, and the data are not normal distributed Select the correct choice below and, if necessary, fill in any answer boxes to complete your choice O A. The 90% confidence interval is ). (Round to two decimal places as needed.) O B. Neither distribution can be used to construct the confidence interval Interpret the results. Choose the correct answer below. O A. With 90% confidence, it can be said that the population mean yards per carry is between the bounds of the confidence interval. O B. It can be said that 90% of players have a yards per carry between the bounds of the fidence erval. O C. If a large sample of players are taken approximately 90% of them will have yards per carry between the bounds of the confidence interval. O D. Neither distribution can be used to construct the confidence interval.
Answer: The sample size is less than 30, so the t-distribution should be used ...
A nutritionist wants to determine how much time nationally people spend eating and drinking. Suppose for a random sample of 994 people age 15 or older, the mean amount of time spent eating or drinking per day is 1.57 hours with a standard deviation of 0.67 hour. Complete parts (a) through (d) below. (a) A histogram of time spent eating and drinking each day is skewed right. Use this result to explain why a large sample size is needed to construct a confidence interval for the mean time spent eating and drinking each day. A. Since the distribution of time spent eating and drinking each day is not normally distributed (skewed right), the sample must be large so that the distribution of the sample mean will be approximately normal. OB. The distribution of the sample mean will never be approximately normal. O C. Since the distribution of time spent eating and drinking each day is normally distributed, the sample must be large so that the distribution of the sample mean will be approximately normal OD. The distribution of the sample mean will always be approximately normal. (b) In 2010, there were over 200 million people nationally age 15 or older. Explain why this, along with the fact that the data were obtained using a random sample, satisfies the requirements for constructing a confidence interval. O A. The sample size is greater than 5% of the population. OB. The sample size is greater than 10% of the population. C. The sample size is less than 5% of the population. O D. The sample size is less than 10% of the population. (c) Determine and interpret a 90% confidence interval for the mean amount of time Americans age 15 or older spend eating and drinking each day. Select the correct choice below and fill in the answer boxes, if applicable, in your choice. (Type integers or decimals rounded to three decimal places as needed. Use ascending order.) hours. O A. The nutritionist is 90% confident that the amount of time spent eating or drinking per day for any individual is between and OB. There is a 90% probability that the mean amount of time spent eating or drinking per day is between and hours. O C. The nutritionist is 90% confident that the mean amount of time spent eating or drinking per day is between and hours. O D. The requirements for constructing a confidence interval are not satisfied.
Answer: (a) Since the histogram of time spent eating and drinking each day is ...
A nutritionist wants to determine how much time nationally people spend eating and drinking. Suppose for a random sample of 925 people age 15 or older, the mean amount of time spent eating or drinking per day is 1.02 hours with a standard deviation of 0.63 hour. Complete parts (a) through (d) below. (a) A histogram of time spent eating and drinking each day is skewed right. Use this result to explain why a large sample size is needed to construct a confidence interval for the mean time spent eating and drinking each day. O A. Since the distribution of time spent eating and drinking each day is normally distributed, the sample must be large so that the distribution of the sample mean will be approximately normal OB. The distribution of the sample mean will always be approximately normal. OC. The distribution of the sample mean will never be approximately normal. D. Since the distribution of time spent eating and drinking each day is not normally distributed (skewed right), the sample must be large so that the distribution of the sample mean will be approximately normal. (b) In 2010, there were over 200 million people nationally age 15 or older. Explain why this, along with the fact that the data were obtained using a random sample, satisfies the requirements for constructing a confidence interval. O A. The sample size is less than 10% of the population. OB. The sample size is greater than 5% of the population OC. The sample size is greater than 10% of the population D. The sample size is less than 5% of the population (c) Determine and interpret a 95% confidence interval for the mean amount of time Americans age 15 or older spend eating and drinking each day. Select the correct choice below and fill in the answer boxes, if applicable, in your choice. (Type integers or decimals rounded to three decimal places as needed. Use ascending order.) hours. O A. There is a 95% probability that the mean amount of time spent eating or drinking per day is between and hours. O B. The nutritionist is 95% confident that the amount of time spent eating or drinking per day for any individual is between and OC. The nutritionist is 95% confident that the mean amount of time spent eating or drinking per day is between and hours. JOD. The requirements for constructing a confidence interval are not satisfied.
Answer: (a) Since the histogram of time spent eating and drinking each day is ...
A nutritionist wants to determine how much time nationally people spend eating and drinking. Suppose for a random sample of 946 people age 15 or older, the mean amount of time spent eating or drinking per day is 1.76 hours with a standard deviation of 0.66 hour. Complete parts (a) through (d) below. (a) A histogram of time spent eating and drinking each day is skewed right. Use this result to explain why a large sample size is needed to construct a confidence interval for the mean time spent eating and drinking each day. O A. The distribution of the sample mean will never be approximately normal. B. Since the distribution of time spent eating and drinking each day is not normally distributed (skewed right), the sample must be large so that the distribution of the sample mean will be approximately normal. OC. The distribution of the sample mean will always be approximately normal. O D. Since the distribution of time spent eating and drinking each day is normally distributed, the sample must be large so that the distribution of the sample mean will be approximately normal. (b) In 2010, there were over 200 million people nationally age 15 or older. Explain why this, along with the fact that the data were obtained using a random sample, satisfies the requirements for constructing a confidence interval. A. The sample size is less than 5% of the population. O B. The sample size is greater than 10% of the population. O C. The sample size is greater than 5% of the population. O D. The sample size is less than 10% of the population. (c) Determine and interpret a 90% confidence interval for the mean amount of time Americans age 15 or older spend eating and drinking each day. Select the correct choice below and fill in the answer boxes, if applicable, in your choice. (Type integers or decimals rounded to three decimal places as needed. Use ascending order.) O A. The nutritionist is 90% confident that the amount of time spent eating or drinking per day for any individual is between and hours. O B. The nutritionist is 90% confident that the mean amount of time spent eating or drinking per day is between hours. and O C. There is a 90% probability that the mean amount of time spent eating or drinking per day is between and hours. O D. The requirements for constructing a confidence interval are not satisfied.
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