S&H Associates has just performed an audit of Bob's Bikes. S&H was unable to obtain a written representation from management about internal control. Which of the following is true?
A. S&H must still assume that management has assessed the effectiveness of internal control.
B. Management does not need to give S&H a letter if it has disclosed all known internal control deficiencies.
C. S&H should consider this situation a limitation on the scope of the audit.
D. Depending on other factors in the audit, S&H can still issue an unqualified opinion.
Answer: C
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Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis?
a. The sum of the fixed and variable spending and variable efficiency variances in the four-variance method is equal to the production-volume variance in the two-variance method. b. The sum of the fixed production-volume and variable efficiency variances in the four-variance method is equal to the production-volume variance in the two-variance method. c. The fixed production-volume variance in the four-variance method is equal to the production-volume variance in the two-variance method. d. The sum of the fixed spending and fixed production-volume variances in the four-variance method is equal to the production-volume variance in the two-variance method.
Laramie, Inc. signed a contract with a service provider for security services at a rate of $260 per month for the period of January through June. Laramie, Inc. will pay the service provider the entire amount at the end of June
The company makes adjusting entries each month. During the month of June, it should record total security expense of $520. Indicate whether the statement is true or false
A positive relationship between vision statements and firm performance is more likely to exist when
A. vision statements are equivalent to listening to the customers. B. visions are product-oriented. C. organizational structures are aligned with the firm's vision statement. D. internal stakeholders are isolated from defining and revising the visions.
Stocks that plot above the security market line are underpriced because their expected returns
exceed their risk-adjusted required returns. Indicate whether the statement is true or false