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Pa1 Assign Essay

2824 words - 12 pages

Before you begin the assignment for Module 1, please click the Module 1 assignment link in the online course navigation
pane for instructions on how to complete and submit your responses for marking.
Part A: Multiple-choice questions
For multiple-choice questions, select the best answer. Answer each item by giving the number of your choice. Incorrect
answers will be marked as zero. Please include your answers to the Part A multiple-choice questions with your answer to
Part B.
Question 1
(20 minutes)

Fine Fertilizers Limited (FFL) produces a line of lawn fertilizers that are manufactured under controlled
conditions to ensure the ingredients ...view middle of the document...

MML has implemented free Internet in the lunchrooms and has noticed a
decrease in the quality of production commencing shortly after the implementation. MML would like to start
undisclosed monitoring of the employees' time spent on the Internet to ensure they are not exceeding their
break time.
What is the most serious risk if the employees find out about the undisclosed monitoring?

Employees could continue to exceed their break time and ignore the undisclosed monitoring.
Employees could see this as an adversarial action and further decrease production quality.
Employees could take actions that would skew the results of the monitoring.
Employees could cease to use the free Internet in order to avoid monitoring.

PA1 Assignment 1

Page 1 of 5

d. Ultimate Company’s brand strategy is one of differentiation, offering high-quality products at higher prices
than its competitors. Which of the following is the most appropriate financial measure to benchmark Ultimate
Company’s performance against its competition?

Debt-to-equity ratio
Total revenues
Net-profit-margin ratio
Gross margin percentage

As a member of the audit team for a large public corporation, you are concerned about violating independence
due to familiarity. Under which of the following conditions could your audit team continue the audit without
breach of independence due to familiarity?
1. The CFO extends an invitation for the audit team to join the company employees at a celebratory pancake
breakfast. You accept because you are acquaintances with the accounting supervisor.
2. Your sister works as finance manager in the head office of the client company and has recently been
promoted to assistant controller.
3. A partner of your firm resigned in order to be appointed this month as the director of internal audit of said
public corporation. You did not work closely with the former partner while he was with your firm.
4. For the past 10 years, the auditor leading this audit has sat as a member of the board of directors of the
same local golf club as the company CFO.


Julia Sanchez has moved to France and is considered to be a non-resident. She has recently received an
assessment of the taxes she filed in Canada before she left and realizes she did not provide sufficient
information on the income earned in Canada, since all of the income sources were assessed as taxable. She has
contacted you, CGA, in your capacity as a tax practitioner, and has asked you to assist her in filing an appeal
for the income that is not subject to tax in Canada under Part 1 of the Income Tax Act. Which of the following
income earned in Canada by Julia will be considered for the appeal process?

Recapture of CCA on the disposition of a rental property in a highly volatile real estate market
Income from a successful catering business carried on in Canada
University scholarship received for...

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