In which of the following cases is it not necessary for an auditor to revise the original materiality level and document the new materiality amount, as well as the rationale for changing the amount?
a. If there is a change in circumstances that involve laws, regulations, or the accounting framework.
b. If there is new information resulting from the risk assessment of the client.
c. If there are changes in the understanding of the client about a new contractual agreement.
d. If the client plans to change depreciation methods for new plant assets procured in the future.
d
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The error that results when the particular sample selected is an imperfect representation of the population of interest is called ________
A) random sampling error B) symmetrical error C) standard error D) nonrandom sampling error E) under/over error
First Communications Group is a communication services firm whose employees provide advertising, market research, public relations, and other services world-wide. Other than relatively small amounts of equipment, it owns virtually no property, plant, and equipment (it leases most of its office space). Which of the following is/are true?
a. First Communications Group has a low fixed asset intensity. b. First Communications Group has a low debt-equity ratio. c. First Communications Group creates value from employees' services, not from operating assets, so there is neither the need nor the ability to borrow long-term using property, plant, and equipment as collateral. d. all of the above are true e. none of the above
The basic format of an income statement is
A) Assets - Liabilities = Profits. B) Income - Expenses = EBIT. C) Sales - Liabilities = Profits. D) Sales - Expenses = Profits.
Which of the following statements avoids gender bias?
A. A manager should support his team. B. A manager who loses his temper quickly is a poor manager. C. A manager should be fair when he conducts appraisals. D. A manager who does not lead by example is a poor manager.