When an auditor chooses not to rely on a client's internal controls because the control design is ineffective, which of the following tests are eliminated?
a. Substantive testing.
b. Tests of controls.
c. Tests of details of balances.
d. Substantive analytical procedures.
b
You might also like to view...
The formula used to calculate the number of units needed in order to earn a desired profit is
A) (Fixed costs + Variable costs)/Sales B) (Fixed costs + Desired profit)/Sales C) (Fixed costs + Desired profit)/Contribution margin per unit D) (Fixed costs + Variable costs)/Contribution margin per unit E) (Fixed costs + Desired profit)/Contribution margin ratio
Protection of trade secrets extends both to ideas and to their expression
Indicate whether the statement is true or false
Which of the following is a feature of a preferred stock??
A. Preferred stockholders have priority over debt holders, with regard to earnings and assets of the firm.? B. ?Preferred stockholders can elect the members of the board of directors and also vote on corporate issues. C. ?The firm has no obligation, contractual or implied, to pay preferred stock dividends. D. ?Preferred stockholders have the right to receive shares of new stock issue in proportion to their current ownership holdings. E. ?Preferred stockholders have a higher priority claim to distributions made by the firm than common stockholders.
The value of a bond is equal to the present value of the bond's interest payments plus the present
value of the bond's maturity value, all discounted at the bond's coupon rate. Indicate whether the statement is true or false