If a company's net income varies significantly from year to year, the auditor might consider using an average of the net income from the prior three to five years as the materiality benchmark
a. True
b. False
Indicate whether the statement is true or false
True
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A firm can charge different prices to different customers if the prices represent manufacturing or quantity discount savings.
Answer the following statement true (T) or false (F)
Control risk is
a. the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated b. associated with the unique characteristics of the business or industry of the client c. the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts d. the risk that auditors are willing to take that errors not detected or prevented by the control structure will also not be detected by the auditor
Only the General Fund may have a positive Unassigned Fund Balance.
Answer the following statement true (T) or false (F)
Performance goals should be all of the following except
a. Written b. Agreed upon c. Discussed d. Given to the employee without discussion