Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 02 Aug 2017 My Price 9.00

Maine Construction

Problem 8-46

BIDDING PROCESS:

Maine Construction builds office buildings. The buildings generally cost between $5million and $8million to build, and the plumbing can cost between $300,000 and $600,000 depending on building requirement. Therefore, Maine always sends the plumbing work out for bid before deciding on whom to use as a subcontractor. The company has had 21 projects over the last 5 yrs with $10million dollar in plumbing contractors being sent out for bids. Over the past 5yrs,Manie has asked for bids from 3 contractors Beltran Plumbing; Delegator Plumbing service; Wright contracting. Each Vendor has been reviewed by Maine and Maine’s approved vendor list.

For each of the following situations, determine whether the auditor should be concerned about the controls over the bidding process. If yes, what control would you recommend to Maine to ensure a fair and honest bidding process?

a. Of the 21 projects sent out for bid, Wright had the winning bid on 12 of the project

b. Of the 21 project sent out for bid Wright had the winning bid on 12 of the projects. In each of these bidding process, Wright bid was the last bid

c. Of the 21 projects sent out for bid, each vendor had the winning bid on 7 of the projects

d. Of the 21 projects sent out for bids, Delegator was awarded 5 contracts even though he did not have the lowest bid

Exhibit 8.45.1 (Bailey Book Inc, Selected Purchases 2012-2014)

Answers

Maurice Tutor
(5)
Status NEW Posted 02 Aug 2017 11:08 PM My Price 9.00

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