Flanders Bar and Grill orders cleaning supply kits using the EOQ model. The restaurant estimates that it uses 525 kits per year. The purchase price per kit is $12 with an estimated carrying cost rate of 15%. The cost to place an order from the kit supplier is $10. What is the average inventory level that the restaurant should expect?
a. 212.5
b. 76.4
c. 525
d. 38.2
d. 38.2
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A key indicator of fraud in the revenue cycle is the auditor's detection of which of the following?
a. Customer collections that are over 90 days past due. b. Credit entries in customer accounts receivable for authorized writeoffs. c. Recurring entries in the sales journal. d. Altered shipping documents and invoices.
Acts of a purported agent in and of themselves can create an agency by estoppel.
Answer the following statement true (T) or false (F)
Computer security is essentially a battle of wits between a perpetrator who tries to find holes and the administrator who tries to close them
Indicate whether the statement is true or false.
Green, CPA, was engaged to audit the financial statements of Essex Corporation after its fiscal year had ended. The timing of Green's appointment as auditor and the start of field work made confirmation of accounts receivable by direct communication with the debtors impracticable. Green applied other procedures and was satisfied as to the reasonableness of the account balances. Green's auditor's report most likely contained a(n) ________.
A) qualified opinion due to a departure from generally accepted auditing standards B) unqualified opinion C) qualified opinion due to a scope limitation D) unqualified opinion with an explanatory paragraph