Question 2: Case study (2.0 marks) L/C: T12345HBI dated 28th April, 2021 Amount: USD215,863.75 L/C at sight Advising Bank: OCBC Shanghai Beneficiary: Champland Steel Co., Ltd - HongKong Applicant: Phuc Anh Co., Ltd Issuing bank: ABC bank, Vietnam After examining the presented documents, ABC bank advised the applicant about the compliance of documents and then Phuc Anh Co. agreed to pay and receive the documents for taking delivery. ABC bank debited Phuc Anh's account and transferred money to the beneciary on Friday 11th June 2021. 2/3 In the morning of 12nd July, 2021, Phuc Anh completed the imported customs clearance and trucked the container to their warehouse, but when the container went through the scaling machine, the machine showed that the weight of the container was very light, not same as the nature of the ordered goods. Phuc Anh immediately advised the ABC bank to hold the payment, but it was impossible because the transferring order went out. According to ABC bank's recommendation, Phuc Anh asked SGS VN to survey the container while unpacking this container, and the survey report showed that the goods shipped in container were not ones ordered by Phuc Anh. a. Who bears the above risk? Why? (0.5 marks) b. Please suggest solutions to protect Applicant's benefit in future. (0.5 marks) c. Another shipment (2 containers) which is also paid by at sight L/C sent by Champland will arrive HaiPhong Port in 2 more days, ABC bank is about to examine the documents. In position of ABC bank, what would you do to protect the importer's benefit? (1.0 mark)

Q8.24 While working on the audit of Cosmopolitan Ltd, you are involved in a review of control activities in the cash disbursement area. As part of your review, you have noted the following procedures:All payments prepared by the clerk include a pre-numbered bank transfer requisition.The bank transfer requisition requires the clerk to confirm that they have performed the following procedures for each payment:checked the additions and prices on the invoiceconfirmed the details on the invoice have been matched to a delivery note by the warehousing departmentverified a valid purchase order exists for the goods.The clerk forwards the bank transfer requisition together with any supporting documentation (invoice and any other relevant correspondence) to the CFO for approval.Required:For each of the three controls identified above:(a) Describe the purpose of the control—what is the control designed to prevent or detect?(b) Identify the account(s) and assertion(s) that this control will have an effect on in the financial report.(c) Give one example of a procedure that could be used to test the control.

Written Assignment Use the Instructions for Case Analyses to craft a response to this case, articulating the main issues and ethical dilemma. Review the assessment criteria below before you begin writing. Case Study: Conflicting Clients Topic: Auditing (Confidentiality, Misrepresentation of Facts) People Involved: Jennifer Grace, First year member of her CPA firm’s management group Tom Ward, CFO of Fantastic Developments, Inc., a client While reviewing the current-year audit working papers of Coshocton National Bank (CNB), the engagement manager, Jennifer Grace, noted something curious. In the working papers related to loan valuation, Jennifer saw that the commercial loan of Fantastic Developments had been randomly selected for confirmation but that Fantastic had not responded to either the initial or second confirmation request. The audit staff disposed of this “loose end” by alternate procedures: examining cash collections (which had become somewhat sporadic) and vouching to underlying loan documentation, including a set of recent (unaudited) financial statements that showed Fantastic’s solid financial position and operating profitability. Jennifer noted this reference to Fantastic Developments because this private company was also a client of her firm. In fact, Jennifer had served as the audit senior on Jennifer noted this reference to Fantastic Developments because this private company was also a client of her firm. In fact, Jennifer had served as the audit senior on the prior-year audit of Fantastic. She knew that the company had been struggling for a couple of years and had experienced recurring operating losses. Her knowledge of Fantastic did not reconcile with the discussion in the audit working papers related to the financial statements furnished to the bank. When Jennifer contacted Fantastic’s CFO, Tom Ward, and inquired about the company’s apparently miraculous turnaround, he was noncommittal and unhelpful. Tom replied that business had picked up. He apologized for not calling Jennifer’s firm himself because he had been so busy, and then he told her that Fantastic had decided to engage another CPA firm for its accounting and auditing needs. Although confused, Jennifer obviously couldn’t reject the possibility that this abrupt dismissal was a direct consequence of her inquiry. As a result, Jennifer wonders whether the financial statements which Fantastic furnished to the bank as a basis for a loan application are fraudulent. The bank apparently has no such suspicion, however. Written Assignment Requirements Submit a written paper which is 2-3 pages in length exclusive of reference page and that is double-spaced. The paper should cite sources to support your ideas. Be sure to review the assessment criteria below before beginning your paper. Cite any reference(s) you use in the preparation of your essay using proper APA format. Written Assignment Peer Assessment In the unit following the submission of your written assignment, you will peer assess three (3) of your classmates’ assignments according to the instructions found in the Assessment Form. During this peer assessment period, you are expected to provide details in the feedback section of the Assessment Form, indicating why you awarded the grade that you did to your peer. The written assignment grade is comprised of a combination of your submission (90%) and your peer assessments (10%). Written Assignment Peer Assessment Rubric For this assignment, your peers will be evaluating your work with the following criteria. Identifies all the relevant facts of the case. Articulates overarching ethical issues including the extent of Jennifer's responsibility to take action; how the interests of the firm (and stockholders) can be balanced against the environmental interests; what obligation the company has to future generations and citizens. Identifies all stakeholders. poses possible alternatives and ethics of each alternative. Paper should explore the possible alternatives and ethics from the Utilitarian Perspective, the Rights Perspective, or the Justice Perspective identifies all practical constraints recommends a specific action Jennifer should take is of high quality, writing is clear and professional conforms to the structural requirements including APA style guidelines for References

The following information relates to Babu Services for August 20.19:         BABU SERVICES1.      BANK RECONCILIATION STATEMENT AS AT 31 JULY 20.19 Unfavourable balance per bank statement………………………………………………R(4 375)Deposit not yet credited……………………………………………………………………16 720Favourable balance per bank account………….………………………………………..? 2.      The bookkeeper received the bank statement for August after the August cash journals were totaled. On comparing it with the August cash journals the following items did not appear in the cash journals:BANK STATEMENT FOR AUGUST 20.19DetailsDateDebitCredit Deposit ………….…………………………………………… 01/08R R16 720Stop order - Insurance………………………………………..................17/082 250 Service fees……………………….………………………….Interest………………………………………………………..EFT PR P831….……………………………………………..Debit order – City Council…………………………………..26/0826/0826/0827/08700 6752 550 105 Additional information regarding the bank statement received on 31 August 20.19.2.1    EFT PR P831 was made in favour of a creditor, I Moloi. The amount was incorrectly entered in the cash payments journal as R765.2.2    The debit order in favour of the City Council was for the owner’s private water and electricity account.2.3    On 31 August 20.19 the bank statement showed a credit balance of R2 765.3.      A deposit for R14 750 appeared in the cash journals, for August 20.19, but not on the bank statement for the same period:          4.      Provisional totals at 31 August 20.19 was:                                                                                                                                                                                            RCash receipts journal                                                                                                          57 175Cash payments journal46 700Prepare the bank account in the general ledger of Babu Services, properly balanced, at 31 August 20.19.Instructions:Drag the correct answer into the correct space.An option can be used more than once.If an options has been provided and it is not applicable to the specific questions please put N/A in the accounts column and a 0 in the amounts column.Start with the subtotals and thereafter keep the transactions strictly in the order they were given.blank blank blank blank blank blank blank blank blank blank BalanceTotal receiptsTotal payments67 84512 3457 17557 28057 26564 54569 71552 30557 17546 70057 85010 47552 9654 3752 76552 20017 51515 64552 29057 370

NH voucher (remitting bank) Pass ph check the contents of documents listedon the collection request received from the collection, are:a) It's correctb) False

Using the case study, describe the TWO roles of the individual in B1.2.2 at the bank.