List three matters which the auditor is responsible for reporting on to the audit committee of a public company.
What will be an ideal response?
Any three of:
i. Independent auditors' responsibilities regarding financial statements and other information in documents
that include the audited financial statements (e.g., the annual 'report to shareholders and filings with the
regulatory agencies such as the OSC or Superintendent of Financial Institutions).
ii. Management's significant accounting policies.
iii. Management judgments about accounting estimates used in the financial statements.
iv. Significant audit adjustments recommended by the auditors.
v. Disagreements with management about accounting principles, accounting estimates, scope of the audit,
disclosures in the notes, and wording of the audit report.
vi. The auditor's view on accounting matters on which management has consulted with other accountants.
vii. Major accounting and auditing issues discussed with management in connection with beginning or
continuing an auditor client relationship.
viii. Illegal acts.
ix. Difficulties with management encountered while performing the audit: delays in starting the audit or
providing information, unreasonable time schedule, unavailability of client personnel, and failure of client
personnel to complete data schedules.
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According to your text, what event began the general swing toward greater regulation of business in the United States?
a. 1840 Philadelphia workers strike b. Fair Packaging and Labeling Act c. Sherman Antitrust Act d. Equal Employment Opportunity Commission
I could not find my car keys therefore I asked a friend of mine to drive me to work
What will be an ideal response?
An opportunity cost is:
A) one that increases as output increases and decreases as output decreases. B) a cost that does not increase as output increases and does not decrease as output decreases. C) the benefit given up or sacrificed when one alternative is chosen over another. D) a cost that cannot be easily and accurately traced to a cost object.
The Family Business Institute indicates that about 12 percent of successful ventures survive into the third generation of ownership.
Answer the following statement true (T) or false (F)