Discuss the various types of agency relationships
What will be an ideal response?
The various types of agency relationships include: a) principal-agent; b) employer-employee; and c) employer-independent contractor. In a principal-agent relationship, the principal gives the agent expressed or actual authority to act on the former's behalf. In an employer-employee relationship, an agent (the employee) who works for pay and is subject to the control of the principal (employer) may enter into contractual relationships on the latter's behalf. In an employer-independent contractor relationship, the agent (independent contractor) is hired by the principal (employer) to do a specific job but is not controlled with respect to physical conduct or the details of work performance.
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A business analysis is typically performed after management has developed the product concept and marketing strategy
Indicate whether the statement is true or false
The cash account is significant to the auditor for which of the following reasons?
a. The cash account is the culmination of a large volume of transactions. b. The cash account is not as susceptible to fraud as most other accounts. c. Cash is the only account that provides opportunity for fraud. d. Automated systems do not possess the capability to maintain strong internal controls over cash.
What are two purposes of the systems project proposal?
Managerial information is for external as well as internal stakeholders
Indicate whether the statement is true or false