Why does the combined total of individual account performance materialities exceed the estimate of planning materiality?
Review Exhibits 1 and 2; audit memos G-3 and G-4; and audit schedules G-5, G-6 and G-7. Based on your review, answer each of the following questions:
For most audits it is not likely to expect that every account will be misstated by an amount equal to its
performance materiality. It is more likely to expect that most accounts will be misstated by an amount
less than its performance materiality while a few accounts may be misstated by an amount greater than
its performance materiality. Additionally, it is not likely that all account misstatements will have the
same directional effect on net income. It is more likely that some account misstatements will overstate
net income while other account misstatements will understate net income and thus will offset each
other.
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Which concept below is a phenomenon in which emotions experienced by one or more individuals in a work group spread to the others?
A. emotional contagion B. emotional intelligence C. emotional affect D. emotional labor
In a SWOT analysis, which of the following would most likely be considered a strength of a company?
A) a favorable economic climate that encourages consumption B) the exit of a competitor from the market C) higher prices of the company's products resulting from inflation D) an increase in consumer interest in the company's products E) an improvement in the company's production technology
What is vicarious liability?
A) nonliability B) liability for multiple torts C) liability without knowledge D) liability without fault
The major attraction of instant messaging (IM) in the workplace is that it allows real-time communication with colleagues anywhere in the world
Indicate whether the statement is true or false