Case Assignment #2 Question - FINAL

School: University of Wisconsin, Madison - Course: MANAGEMENT MGAC70 - Subject: Accounting

Case #2 Submission Instructions Due date:11:59 PM on Sunday, November 20, 2022 Format: 1. This is a group case assignment.The maximum size is 4 students per group. 2. Each case should be typed, double-spaced on letter-size paper using one-inch margins. 3. Maximum length is 8 pages or approximately 2,000 words, exclusive of tables, appendices (8 page max) and references and 12-point Arial font or equivalent. 4.Please follow the CPA Way in analyzing the accounting issues. 5. It is recommended that you keep the rough draft of your submission to minimize the problems caused by lost or missing assignments. 6.Assignments (1 word document and 1 excel file with each excel sheet properly labelled) must be submitted in both Canvas (under "Hand in Case Assignment") and Ouriginal.You must name your file as follows: "2022FC01Case2JaneDoe998998998".The first page of your case assignment must indicate the group members student's name, student number and lecture section to allow us to easily assign a grading under your student number.Only one member per group must budget the report.Time extensions cannot be granted. 7.On the due date, an electronic copy also needs to be submitted to Ouriginal. Normally, students will be required to submit their course essays to Ouriginal.com for a review of textual similarity and detection of possible plagiarism. In doing so, students will allow their essays to be included as source documents in the Ouriginal.com reference database, where they will be used solely for the purpose of detecting plagiarism. The terms that apply to the University's use of the Ouriginal.com service are described on the Ouriginal.com web site. 8. In general, no late assignments will be accepted except for any unusual circumstances pre- approved by the instructor.When this happens, the student is required to provide proper documentation and discuss the situation immediately with the instructor to sort out the submission due date.Depending on the situation, the instructor reserves the right to possibly impose a penalty mark for the late submission or defer the weighting of the assignment to the final exam. 2Case Question: Avenue Construction Corp. (ACC or "the Company") is a small company listed on the Toronto Stock Exchange (TSX) that distributes a line of construction equipment directly to customers in the construction industry. ACC has been in business for over 20 years and during that time has experienced consistent growth through expanding its product offerings, including mining equipment, drilling equipment, cranes, etc.ACC sells to customers across Canada from its single facility in Sudbury, Ontario. It is now early-November.You work for Ruffino and Phung LLP as an audit manager.This year, you have rotated on as the audit manager for ACC's year-end audit for 2022.The Company follows an October 31 year-end.You were asked by the engagement partner to attend a meeting she is having with the Company's CEO, Daniel Sanderson, and the Company's CFO, Jack Robinson.Both individuals are new to the Company this year as the prior management have resigned from the Company on December 12, 2021.Jack indicates that there is a lot going on this year.Understandably, they have a few questions regarding potential implications of certain transactions.