Business, 13.02.2020 23:23 camidevecchis15
Moranda and sills, LLP, has served for over 10 years as the auditor of the financial statements of Highland Bank and Trust. The firm is conducting its audit planning for the current fiscal year and is in the process of performing risk assessment procedures. Based on inquiries and other information obtained, the auditors learned that the bank is finalizing and acquisition of a smaller community bank located in another region of the state. Management anticipates that the transaction will close in the third quarter, and, while there will be some challenges in integrating the IT systems of the acquired bank and Highland systems, the bank should realize a number of operational cost saving over the long-term.
During the past year, the bank has expanded its online service options for customers, who can now remotely deposit funds into the withdraw funds from checking and savings accounts. The system has been well received by customers and the bank hopes to continue expanding those services. The challenge for Highland is that they are struggling to retain IT personnel given the strong job market from individuals with those skills.
Credit risk management continues to be a challenge for all banks, including Highland, and regulators continue to spend a lot of time on credit evaluation issues. The bank has a dedicated underwriting staff that continually evaluates the collectivity of loans outstanding. Unfortunately, some of the credit review staff recently left the bank to work for a competitor. Competition in the community banking space is tough, especially given the slow loan demand in the marketplace.
The bank has expanded its investment portfolio into a number of new types of instruments subject to fair value accounting. Management has engaged an outside valuation expert to ensure that the valuations are properly measured and reported.
Fortunately, the bank's capital position is strong and it far exceeds regulatory minimums. Capital is available to support growth goals in the bank's three-year strategic plan.
a. Describe any risks of material misstatement at the financial statement level.
b. Describe any risks of material misstatement at the assertion level.
c. Which, if any, risks would be considered a significant risk?
Answers: 1
Business, 21.06.2019 18:20, haza1873
Amathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. thus, if mexico's real gdp per person is growing at 7 percent per year, it will take about 10 years(=70/7) to double. apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the u. s. if real gdp per person in mexico grows at the rate of 5 percent per year: how long will it take mexico's real gdp per person to reach the level that the united states was at in 2005? (hint: how many times would mexico's 2005 real gdp per person have to double to reach the u. s.'s 2005 real gdp per person?
Answers: 3
Business, 23.06.2019 00:40, doublejojo214
What role do business cycles play in a market economy
Answers: 2
Business, 23.06.2019 11:00, toritori4015
Which of the following is an example of a person’s background? a. jose enjoys drawing and painting. b. tobias works as a preschool teacher. c. jennifer grew up in beirut. d. lin wants to be an architect.
Answers: 1
Moranda and sills, LLP, has served for over 10 years as the auditor of the financial statements of H...
Mathematics, 05.11.2020 01:40
English, 05.11.2020 01:40
English, 05.11.2020 01:40
Mathematics, 05.11.2020 01:40
English, 05.11.2020 01:40
History, 05.11.2020 01:40
English, 05.11.2020 01:40