An auditor may best test commissions expense for salespeople when control risk is low by performing which of the following procedures?
a. Analytical procedures.
b. Tagging and tracing.
c. Alternative procedures.
d. Subsequent proof of cash.
a
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During the 1950's, General Motors (GM) was responsible for about 60 percent of all passenger cars produced in the United States. Some criticized GM for
a. encouraging too much market competition. b. failing to use economies of scale in individual plants. c. acquiring monopoly power over the auto market. d. failing to sufficiently dominate the auto market.
When using vertical analysis to analyze the income statement, all amounts are converted to a percentage of:
a. net income. b. total assets. c. gross margin. d. gross sales.
The returns on the stock of DEF and GHI companies over a 4 year period are shown below: Year DEF GHI 8% 11% 12% 9% -5% -9% 6% 13% From this limited data you should conclude that returns on
A) DEF and GHI are negatively correlated. B) DEF and GHI are somewhat positively correlated. C) DEF and GHI are perfectly positively correlated. D) DEF and GHI are uncorrelated.
There is no exact definition of a monopoly, but in general a monopoly:
a. a firm does not have to pay any federal taxes b. one firm makes a better product than others in the same market c. consumers prefer one firm over all others d. one firm has more than 30% of the market share for a certain product e. none of the other choices are correct