Which of the following statements is TRUE?
a. External auditors are usually specifically trained to detect fraud.
b. Audits of books and records rarely discover frauds.
c. Less than 5 percent of all frauds are detected by auditors.
d. The presence of auditors provides a major deterrent effect.
d
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Incorrect.
d. Correct.
You might also like to view...
The coinsurance provision in the homeowners' policy generally
A) prohibits homeowners from having more than one policy in effect at a given time. B) sets limits on the amount one insurance company will pay when there is more than one policy in effect. C) indicates the dollar deductible on each damage claim. D) requires the homeowner to pay part of the replacement cost when the dwelling unit is insured for less than 80% of its replacement value.
Which of the following is correct with respect to a bank customer's duty to discover and report unauthorized signatures?
a. The customer is required to exercise reasonable care and promptness to examine the bank statement. b. A customer's duty of examination includes checking the signatures of payees or indorsers. c. The bank is liable on all items with unauthorized signatures even if these canceled checks were returned to the customer four years prior to the discovery of the alterations. d. The bank is not required to exercise ordinary care in paying the items.
Which of the following employers is likely to have an English-only policy upheld?
a. Hospital with surgery and trauma units b. An emergency call center c. The control room of a nuclear power plant d. All of the above
Grande Corporation assembles bicycles by purchasing frames, wheels, and other parts from various suppliers. Consider the following data: *The company plans to sell 25,000 bicycles during each month of the year's first quarter.*A review of the accounting records disclosed a finished-goods inventory of 1,400 bicycles on January 1 and an expected finished-goods inventory of 1,850 bicycles on January 31.*Grande has 4,300 wheels in inventory on January 1, a level that is expected to drop by 5% at month-end.*Assembly time totals 30 minutes per bicycle, and workers are paid $14 per hour.*Grande accounts for employee benefits as a component of direct labor cost. Pension and insurance costs average $2 per hour (total); additionally, the company pays Social Security taxes that amount to 8% of
gross wages earned.Required: A. How many bicycles does Grande expect to produce (i.e., assemble) in January?B. How many wheels are budgeted to be purchased in January?C. Compute Grande's total direct labor cost for January.D. Briefly explain how the company's purchasing activity would affect the end-of-period balance sheet. What will be an ideal response?