When the auditor is not independent with respect to a client, what must the auditor do?
a. Not accept an audit engagement.
b. Include a separate paragraph in the audit report stating the lack of independence.
c. Provide a review report.
d. Report the non-compliance to the AICPA.
a
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The time period assumption indicates that the entity will remain in business for an indefinite period time
Indicate whether the statement is true or false
The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entries are posted, what will be the balance in the Retained earnings account? Total revenues$115,000?Total expenses 55,200?Retained earnings 73,600?Dividends 13,800?
A. $73,600. B. $59,800. C. $55,200. D. $119,600. E. $133,400.
Janet was employed as a sales representative for Esday, Inc An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract. Can Janet keep the bracelet?
A)Yes. The bracelet was given to Janet personally and intended for her. B)Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the bracelet. C)No. An agent is not allowed under any circumstances to personally profit as a result of the agency relationship. D)No. The bracelet is regarded as an unfair trade practice and violates antitrust law.
Chang Corporation has two divisions, T and W. The company's overall contribution margin ratio is 40%, with sales in the two divisions totaling $900,000. If variable expenses are $200,000 in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must be:
A. $200,000 B. $340,000 C. $700,000 D. $425,000