Contrast internal and external auditing
Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. External auditing is often called "independent auditing" because it is done by certified public accountants who are independent of the organization being audited. This independence is necessary since the external auditors represent the interests of third-party stakeholders such as shareholders, creditors, and government agencies.
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When long-term investments in bonds are sold before their maturity date, the seller would receive the sales price less commissions plus any accrued interest since the last interest payment date
Indicate whether the statement is true or false
The U.S. Green Building Council verifies that a building meets certain standards before issuing a Leadership in Energy and Environmental Design (LEED) certification. Lolly hires Myron, a subcontractor, and insists that his work conform to the requirements of the LEED rating system. If the standards are not conformed to, then
A. certain tax credits may not be available. B. the U.S. Green Building Council may impose sanctions. C. Lolly must pay "just compensation" to the local zoning authority. D. Myron may be denied a zoning variance.
What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is $3,250?
A. Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500. B. Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500. C. Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750. D. Debit Cash, $7,750; Credit Prepaid Insurance, $7,750. E. Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250.
Why should a benchmark statement be included in advertising objectives?
A. Shareholders want to see where a company is in relation to competition. B. It is useful in determining whether retailers have increased their sales over the year. C. It gives an indication of how the advertising message is best presented. D. Without a reference point, it is difficult to determine to what degree objectives have been accomplished. E. Objectives become more easily attainable when such a statement is included.