Audit procedures can be classified as risk assessment procedures, test of controls or substantive tests

a. True
b. False
Indicate whether the statement is true or false


True

Business

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Which of the following is the most common inquiry method?

a. Graphology b. Pencil-and-paper tests c. Interviewing d. Polygraphs

Business

______ are shortcuts or “rules of thumb” that allow us to make judgments and decisions quickly and efficiently.

A. Heuristics B. Satisficing C. Persuasive D. Intuition

Business

In a lawsuit for malicious prosecution, the original defendant sues the original plaintiff

Indicate whether the statement is true or false

Business

Solarcell Corporation has $20,000 that it plans to invest in marketable securities. It is choosing between AT&T bonds that yield 11.00%, State of Florida municipal bonds that yield 8.00%, and AT&T preferred stock with a dividend yield of 9.00%. Solarcell's corporate tax rate is 39.00%, and 70.00% of the preferred stock dividends it receives are tax exempt. Assuming that the investments are equally risky and that Solarcell chooses strictly on the basis of after-tax returns, which security should be selected? Answer by giving the after-tax rate of return on the highest yielding security.

A. 8.00% B. 9.12% C. 8.24% D. 7.44% E. 6.08%

Business