Recent Posts • Latest Topics • Unanswered Questions

PA is comparing the liabilities section of ABC Ltd. from last year to this year. Last year, ABC Ltd. ...

npeelman

wrote...

Go to Answer

Posts: 667

Rep:

6 years ago

PA is comparing the liabilities section of ABC Ltd. from last year to this year. Last year, ABC Ltd. ...

PA is comparing the liabilities section of ABC Ltd. from last year to this year. Last year, ABC Ltd. had large loans due to major shareholders and officers and to one bank. This year, the debt has been reorganized, so there are now two different banks used for loans. Instead of having debt to shareholders and officers, the company now owes notes to 25 different foreign investors, who are entitled to convert the debt to shares if interest is not paid or if principal instalments are not paid on time. For this year's audit, how will the change in debt structure affect the audit risk model?
A) no effect on the audit risk model
B) higher control risk
C) lower audit risk
D) higher audit risk

Textbook

Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

Read 83 times

2 Replies

Report

Replies

Answer verified by a subject expert

inthe80s

wrote...

Posts: 475

Rep:

6 years ago

More solutions for this book are available here

Report

Related Topics

npeelman Author

wrote...

5 years ago

Thanks b

Report

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1251 People Browsing

120 Signed Up Today

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

AJAX Chat © blueimp.net Integrated with SMF

Related Images

1697

998

10652

Your Opinion

Previous poll results: Who's your favorite biologist?

Strange Ingredients Lurking in Doritos Chips

The Toxic Skin and Fungi Defense

Bonobos, Chimpanzees, and the 98% DNA Link

It's sore throat season, why does my mucus have red spots?

Courses by Biology Forums

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.