Assignment Solution ACC311
(Fundamentals of Auditing) Fall 2019
Due Date: 29 November, 2019
According to Companies Act 2017 [Section 247], the person who is a partner or employee of a director, other officer or employee of the company cannot be appointed as auditor. So, the appointment of M/s Shafee & Co as external auditor is not legally permissible as Mr. Waseem – director of Barkat enterprises is also a partner of M/s Shafee & Co
According to Companies Act 2017 [Section 247], the public company having paid up capital of three million or more must hired the chartered accountant or chartered accountancy firms as external auditors. So, the appointment of Nabi Associates as external auditor is legally permissible as MTM (Pvt) have 3.2M paid up capital.
According to Companies Act 2017 [Section 247], the person who is a spouse of company’s director cannot be appointed as auditor. So, the appointment of Mr. Ahsan’s company as external auditor is not legally permissible as Mr. Ahsan is a spouse of company’s director i.e. Miss Sara.
As per Companies Act 2017 [Section 247], a persons who is Present directors, other officer or employees of the company or who held these offices during the last three years cannot be appointed as external auditor. So, Mr. Shahbaz cannot be appointed as external auditor as he holds the company office as an officer in preceding 2 years.
Mr. Zeeshan cannot be appointed as external auditor of Hussain Enterprises as he is still employee of the company which is against the conditions of Companies Act 2017 [Section 247] for appointment of auditors.
FIN722 Assignment 2 Solution and Discussion
SEMESTER Fall 2019
Corporate Finance (FIN722)
Assignment for Post Mid
Due Date: January 14, 2020
Topic: Inventory Management
Learning Outcome: After attempting the assignment, students will be able to
Learn the concept of different costs involved in managing the inventory by a business
Learn to work out total and per unit inventory cost
Best Sports Limited (BSL) is renowned for manufacturing sport’s accessories. Company manufactures export quality sport’s bands, bags and gloves. To maintain the quality standards of their products, company is very much concerned about the quality of raw material used in production. After observing the annual demand of its products, it is estimated that production department requires 120,000 kg raw material on annual basis to fulfill the demand. For this, company short listed two of its best suppliers who quoted the following costs:
Raw material Cost (Purchase Price): Rs. 130 / kg
Order Cost: Rs. 110 / order
Holding cost that the company will have to bear is 3% of the purchase price.
Moreover, supplier A has offered no discount while the supplier B has offered 2% discount if
minimum order size is not less than 8000kg.
Suggest which of the suppliers (A or B) company should choose and for this, you must need to provide the working of following:
Calculate total cost and per unit cost if company chooses supplier A. 3. CalculatetotalcostandperunitcostifcompanychoosessupplierB.
Calculate total annual saving (or loss) based upon the working of part 2 & 3. Note: Provide complete detailed working for each part.
Working of each missing value carries certain marks so, it is necessary to provide detailed working of each value to avoid any inconvenience.
Before attempting the assignment, it is advised to consult the relevant lectures, recommended book(s) and the additional material. This additional material has also been provided on VULMS in different lessons. You can view these supplements on VULMS under the link of “lessons” along with PPTs.
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