Which of the following is the least important in helping the auditor develop an independent expectation of interest expense as a substantive analytical procedure?
a. Determine average interest rates.
b. Determine average debt outstanding.
c. Examine disaggregated data by type of debt.
d. Examine an interest revenue schedule.
d
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Which of the following is a typical symptom of a revenue-related fraud?
a. Significant new, unknown customers. b. Fall in gross profit percentage compared to the previous year. c. Purchases from suppliers not approved on vendor lists. d. The company having a huge customer base.
If the auditor believes that misstatements aggregating approximately $50,000 would be material to the income statement, but misstatements aggregating approximately $100,000 would be material to the balance sheet, the auditor typically assesses overall materiality at $100,000 or less
a. True b. False Indicate whether the statement is true or false
The public relations tool that provides a forum for the organization to share with its stakeholders what it has achieved over the past year is the ________ ________.
Fill in the blank(s) with the appropriate word(s).
Assume that a three-year Treasury note (T-note) has no maturity premium, and that the real risk-free rate of interest is 3 percent. If the T-note carries a nominal risk-free rate of return of 13 percent and if the expected average inflation rate over the next two years is 9 percent, what is the implied expected inflation rate during Year 3?
A. 7% B. 12% C. 9% D. 11% E. 18%