One of the problems with the percentage of sales budgeting method is:
A) deciding on the percentage level
B) finding a benchmark figure to use
C) the budget tends to change in the opposite direction of what may be needed
D) the competition knows how much the company will spend on advertising
C
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To conduct an audit, what must an auditor do?
a. Comply with relevant ethical standards. b. Exercise perfect judgment. c. Obtain sufficient appropriate evidence to provide absolute assurance. d. All of the above.
The following procedures were recently implemented at the Pampered Pets, Inc For each procedure, indicate whether the internal control over cash represents (1 ) a strength or (2 ) a weakness. If it is a weakness, please explain why. (a) At the end of
the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers. (b) At the end of the day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank. (c) After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. (d) Along with the petty cash expense receipts for postage, office supplies, etc., several post-dated employee checks are in the petty cash fund.
Even in large companies, few internal controls exist in order to establish greater control of security among limited individuals.
Answer the following statement true (T) or false (F)
The term "S Corporation" comes from A) the Internal Revenue Code
B) the FTC rules. C) the Securities and Exchange Commission. D) state corporation law.