Due diligence is an effective defense to liability under Section 11 of the Securities Act of 1933
Indicate whether the statement is true or false
TRUE
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After obtaining an understanding of internal controls and assessing control risk of an entity, an auditor decided not to perform tests of controls for purposes of the audit. The auditor most likely decided that:
A. the assessed level of inherent risk exceeded the assessed level of control risk. B. a reduction in the assessed level of control risk is justified for certain financial statement assertions. C. it would be inefficient to perform tests of controls that would result in a reduction in planned substantive procedures. D. the available evidential matter obtained through tests of controls would not support an increased level of control risk.
A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Level of activity 2,500DLHs Overhead costs at the denominator activity level: Variable overhead cost$8,500 Fixed overhead cost$34,625 The following data pertain to operations for the most recent period: Actual hours 2,600DLHs Standard hours allowed for the actual output 2,592DLHs Actual total variable manufacturing overhead cost$9,100 Actual total fixed manufacturing overhead cost$35,025 What is the predetermined overhead rate to the nearest cent?
A. $17.65. B. $16.59. C. $17.25. D. $16.97.
Answer the following statements true (T) or false (F)
According to signalling theory, firms have an economic incentive to report bad news.
Are leaders born or made?
What will be an ideal response?