During the first phase of an audit, a CPA most likely would:
A. inquire of the company's attorney as to whether any unrecorded claims are probable or asserted.
B. identify specific internal control activities that are likely to prevent fraud.
C. evaluate the reasonableness of the company's accounting estimates.
D. evaluate the integrity of management.
Answer: D
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For every dollar’s worth of goods and services bought at an earlier date, the amount of money it would take now to buy the same amount of goods and services after N years of inflation at rate p is called the ________ inflation discount factor.
A. future B. realized C. expected D. past
When using confirmations with outside parties, the auditor must assure which of the following about the outside party?
a. The outside party exists. b. The outside party is able to respond objectively and independently. c. The outside party is unbiased in responding. d. All the above.
Emerald Corporation's overhead budget for 2013 was as follows: Factory supervision $450,000 Utilities costs 250,000 Insurance 30,000 Property taxes 25,000 Depreciation 125,000 Total $880,000 750,000 units were produced in 2013. Direct labor cost is $42,000,000. For both 2013 and 2014, each unit required 4 direct labor hours at $14 per hour. In 2014, property taxes, insurance, and depreciation are
expected to stay at 2013 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $45,000 for every 300,000 increase in direct labor hours. The 2014 expected production is 1,200,000 units. What will be the value for factory supervision of Emerald in the 2014 overhead budget? A) $720,000 B) $270,000 C) $450,000 D) $990,000
A criticism of ________ is that it/they may lead to the development of a two-tier system of justice
A) minitrials B) private trials C) arbitration D) mediation