Describe the organizations involved in standard setting for auditors in the United States and what their respective roles are in setting current auditing standards for companies in the United States.
What will be an ideal response?
Most auditing standards were developed by the AICPA's Accounting Standards Board (ASB).
At that time, the profession was self-regulated. However, the Sarbanes-Oxley Act of 2002
transferred the authority to set auditing standards for public company audits to the Public
Company Accounting Oversight Board (PCAOB), which is overseen by the Securities and
Exchange Commission (SEC). However, the PCAOB adopted the ASB's auditing standards on
an interim basis. CPAs must still abide by the AICPA's Code of Professional Conduct at all
times. They must also follow auditing standards set by the ASB when performing audits of
private companies and other nonpublic entities. The ASB has replaced the 10 GAAS with a
more comprehensive and coherent description of the principles underlying an audit conducted
in accordance with generally accepted auditing standards.
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Which of the following statements about the steps in the target marketing process is true?
A) The first step in the target marketing process is setting marketing objectives. B) There are four steps in the target marketing process. C) The second step in the target marketing process is the identification of all segmentation variables. D) The final step in the target marketing process is positioning. E) The target marketing process is not related to positioning.
A company is trying to decide which of two new product lines to introduce in the coming year. The company requires a 12% return on investment. The predicted revenue and cost data for each product line follows: ? Product A Product BUnit sales25,00020,000Unit sales price$ 30$ 30Direct materials$15,000$8,000Direct labor$120,000$80,000Other cash operating expenses$30,000$25,000New equipment costs$2,500,000$1,500,000Estimated useful life (no salvage)5 years5 yearsThe company has a 30% tax rate and it uses the straight-line depreciation method. The present value of an annuity of 1 for 5 years at 12% is 3.6048. Compute the net present value for each piece of equipment under each of the two product lines. Which, if either of these two investments is acceptable?
What will be an ideal response?
The return on investment measure is also referred to as:
A. Net margin. B. Return on equity. C. Return on assets. D. Return on debt.
The illumination step in Wallas's creative process involves letting a problem lie in the subconscious for a time.
Answer the following statement true (T) or false (F)