The text discusses three main categories of audit procedures. List and describe these three main categories of audit procedures and describe their purpose.
What will be an ideal response?
Risk assessment procedures: Risk assessment procedures are performed to obtain an understanding of the entity and its environment, including its internal control, in order to assess the risks of material misstatement at the financial statement and assertion levels.
Tests of controls: Tests of controls allow the auditor to test the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.
Substantive procedures: Substantive procedures are performed to detect material misstatements at the assertion level.
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The ____________________ is when the names of stockholders entitled to receive the dividend are determined
Fill in the blank(s) with correct word
DPC, an electric utility, has $100 million of bonds payable outstanding that mature in five years. The utility acquires U.S. government securities whose periodic interest payments and maturity value exactly equal those on the utility's outstanding bonds. The firm intends to use the cash received from the government bonds to make required interest and principal payments on its own bonds. The
electric utility could also have used its cash to purchase its bonds in the marketplace. Based on the above, DPC should treat these securities as a. debt securities held as securities available-for-sale. b. debt securities held as trading securities. c. debt securities held to maturity. d. equity securities held as trading securities. e. equity securities held as securities available-for-sale.
According to the text, an example of a company that has embraced ecobranding to its fullest is _______________.
a. Dell Computers b. Timberland c. General Electric d. Google
The principle that each government has the absolute authority to rule its people and its territory is known as
a. legitimacy. b. immunity. c. jurisprudence. d. sovereignty.