Melvin a cpa was hired by buy-um-up inc to audit its, Ask an Expert

Management Studies

Melvin, a CPA, was hired by Buy-Um-Up Inc., to audit its financial statements. Due to his negligence, Melvin failed to discover that Morris, chairman the board of directors of Buy-Um-Up, had embezzled $400,000 of the company funds. Melvin finished the audit and issued an unqualified opinion. Six months later, Melvin read in the newspapers that Carl had been caught for embezzling a total of $1,000,000 of company funds. Carl resigned and the company funds were fully recovered from him. Buy-Um-Up sued Melvin. For how much, if anything, is Marvin liable? A. $1,000,000 B. $400,000 C. $1,200,000 D. $600,000 E. Nothing, Melvin is not liable for Morris' embezzlement.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91889896

Have any Question?Write your Review or question?

Related Questions in Operation Management

Imagine that you are working as an intern at an advertising

Imagine that you are working as an intern at an advertising agency and the agency just won a new account, a bottled team named Leafs Alive. The sale of bottled tea is surging, with the industry reaching $10.5 billion in ...

Unsaved jungle figures inc produces two models of its

Unsaved Jungle Figures, Inc. produces two models of its stuffed giraffes, which it markets to high-end retail stores. The large giraffe requires 2 pounds of stuffing material and 6 minutes of machine time. The small gira ...

When the ucc applies and difference between ucc and common

When the UCC applies and difference between UCC and Common law When the CISG applies, why it would apply and how to opt out of it. Read Article posted on BeachBoard about “opting out” Battle of the Forms; Knock Out Rule ...

For reflection is there a language aspect for example you

For reflection, is there a language aspect (for example, you ‘order’ when you could ‘invite’) that you could improve upon in your communication with your important stakeholders that might benefit you, them, and the organ ...

A how might the three types of plans strategic operational

a. How might the three types of plans (strategic, operational, and tactical) complement one another in a company? Use examples to illustrate your answers. b. Rationality, bounded rationality and intuition are among the m ...

D pizza king pk and noble greek ng are competitive pizza

D. Pizza King (PK) and Noble Greek (NG) are competitive pizza chains. PK believes there is a 30% chance that NG will charge $8 per pizza, a 50% that NG will charge $10 per pizza, and a 20% chance that NG will charge $12 ...

In the highly turbulent airline industry southwest airlines

In the highly turbulent airline industry, Southwest Airlines is one of the healthiest companies, continuing growth and profit in a climate that is threatening the survival of other airlines. Much of its success is attrib ...

When looking at the life of a project plan it is useful to

When looking at the life of a project plan, it is useful to graph and outline the cost variance (CV), and schedule variance (SV). Determining progress, or lack of progress, provides essential information to assess a give ...

1 do you have first-hand experience in an organization that

1. Do you have first-hand experience in an organization that was trying to change? Was it successful? Can you recognize the steps from Kotter model ? If there was resistance to change, why - which of the 3 sources of res ...

Practical demonstrationyou are required to hold a meeting

Practical Demonstration You are required to hold a meeting with at least 4 other people who are risk management stakeholders and colleagues. The meeting can be in a simulated workplace, which will be organised by your as ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert