Which one of the following statements is true?
a. Good cash management practices dictate that a company should maintain as large a balance as possible in its cash account.
b. Sound internal control practice dictates that disbursements should be made by check.
c. The person handling the cash should also prepare the bank reconciliation.
d. Petty cash can be substituted for a checking account to expedite the payment of all disbursements.
b
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Which of the following statements concerning audit evidence is correct?
A. The cost of obtaining evidence is not an important consideration to an auditor in deciding what evidence should be obtained. B. A company's accounting data cannot be considered sufficient audit evidence to support the financial statements. C. Effective internal controls contribute little to the reliability of the evidence created within the entity. D. Appropriate evidence supporting management's assertions should be convincing rather than persuasive.
Information that can be gleaned from stored data is _____.
A. knowledge B. experience C. intelligence D. wisdom
Which of the following terms best describes the risk that audit procedures will fail to detect misstatements exceeding tolerable misstatement?
a. Audit risk. b. Control risk. c. Detection risk. d. Inherent risk.
The challenge for makers of ________ products is to add long-run benefits without reducing the products' agreeable qualities
A) salutary B) desirable C) pleasing D) durable E) deficient