Auditors should obtain evidence that there are no significant amounts of unrecorded retirements of property, plant, and equipment.a. Describe two ways that the auditors obtain evidence that there are no significant amounts of unrecorded retirements of property (land).b. Describe three ways that the auditors obtain evidence that there are no significant amounts of unrecorded retirements of equipment.
What will be an ideal response?
a. The auditors obtain evidence that there are no significant amounts of unrecorded retirements of property by (only two required):
Examination of property tax bills.
Vouching rent receipts from lessees.
Examination of payments to mortgagee or trustee.
b. The auditors obtain evidence that there are no significant amounts of unrecorded retirements of equipment by (only three required):
For major purchases, investigate related retirements.
Analyze the Miscellaneous Revenue account to locate cash proceeds from sale of equipment.
For discontinued operations, investigate related retirements.
Inquire of executives and supervisors.
Investigate reductions in insurance coverage.
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In Hofstede's dimensions, a culture low on ________ tolerates ambiguous situations and values unusual ideas and behaviors.
A. power distance B. collectivism C. masculinity D. short-term orientation E. uncertainty avoidance
Amir bought a television set from Corbel Electronics for $250. Corbel Electronics delivered a warranty of six years for any manufacturing defect in the product. After three years of use, the television set caught fire because of a manufacturing defect. The fire also damaged other goods in Amir's house. Which of the following statements is most accurate regarding this scenario?
A. Amir cannot recover damages for loss in value of the television set. B. Amir's right to recover damages is barred by the Uniform Commercial Code's statute of limitations. C. Amir cannot recover damages for personal injuries under the warranty from Corbel Electronics. D. Amir can claim consequential damages for a breach of warranty resulting in injury to the property.
What approach do salespeople most commonly use? What is the disadvantage to this approach method? Give an example of such an approach.
What will be an ideal response?
Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Wally refuses to sell any land to Robert. What is the result?
a. Robert wins; this is an enforceable contract with complete and definite terms. b. Robert wins; the UCC will decide which 40 acres are to be sold. c. Wally wins; the original offer was not intended to be an offer but merely an invitation to negotiate. d. Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.