Indicate whether each procedure is a preventive or detective control
a. authorizing a credit sale Preventive Detective
b. preparing a bank reconciliation Preventive Detective
c. locking the warehouse Preventive Detective
d. preparing a trial balance Preventive Detective
e. counting inventory Preventive Detective
A. preventive; B. detective; C. preventive; D. detective; E. detective
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Asset impairment is not typically assessed by the independent auditor since it is a subjective management estimate
a. True b. False Indicate whether the statement is true or false
Which of the following should the client have as part of its process for estimating fair value?
a. A systematic process to identify each asset that is subject to realizable value estimation. b. A process to identify relevant historical values. c. An analysis of transactions that have taken place within the client's organization. d. A realistic process to estimate future cash flows to discount back to a present value.
A partnership need not obtain permission from the state before it legally conducts business
Indicate whether the statement is true or false
Wollan Corporation has two operating divisions--an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $39 per shipment. The Logistics Department's fixed costs are budgeted at $402,400 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak-period Capacity RequiredBudgeted ShipmentsEast Division 15?% 1710? West Division 85?% 5440? At the end of the year, actual Logistics Department variable costs totaled $300,105 and fixed costs totaled $428,000. The East Division had a total of 2560 shipments and the West Division had a total of 4850 shipments for the year.How much actual Logistics Department cost should
not be allocated to the operating divisions at the end of the year? A. $25,600 B. $36,715 C. $0 D. $11,115