The materiality concept implies that if an error is large enough or could effect the decisions of its users, a correction is absolutely necessary
Indicate whether the statement is true or false
True
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At Forrest Industries, all sales are on account. Sienna Marcos is responsible for mailing invoices to customers, recording the amount billed, opening mail, recording the payment, and making deposits to the bank. Sienna is very devoted to the family
business and never takes off more than one or two days for a long weekend. The customers know Sienna and sometimes send personal notes with their payments. Another clerk handles all aspects of accounts payable. Sienna's brother, who is president of Forrest Industries, has hired an accountant to help with expansion. REQUIRED: 1 . List some problems with the current accounts receivable system. 2 . What suggestions would you make to improve internal control? 3 . How would you explain to Sienna that she personally is not the problem?
Which of the following strategies will a CPA most likely consider in auditing an entity that processes most of its financial data only in electronic form, such as a paperless system?
A. Continuous monitoring and analysis of transaction processing with an embedded audit module. B. Extensive testing of firewall boundaries that restrict the recording of outside network traffic. C. Verification of encrypted digital certificates used to monitor the authorization of transactions. D. Increased reliance on internal control activities that emphasize the segregation of duties.
Use this earned schedule table to determine the schedule variance ($) for this project at the end of Month 6
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 PV ($) $125 $275 $500 $875 $1,485 $2,325 $2,670 EV ($) $50 $120 $255 $420 $715 $865 $0 A) -$1,460 B) -$865 C) $865 D) $2325
Which of the following credits is considered a refundable credit?
A. lifetime learning credit B. adoption expense credit C. credit for elderly and disabled D. earned income credit