Firms with a high degree of operating leverage are
A) easily capable of surviving large changes in sales volume.
B) usually trading off lower levels of risk for higher profits.
C) significantly affected by changes in interest rates.
D) trading off higher fixed costs for lower per-unit variable costs.
D) trading off higher fixed costs for lower per-unit variable costs.
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A written understanding between the auditor and the client concerning the auditor's responsibility for the discovery of illegal acts is usually set forth in a(n):
A. letter of audit inquiry. B. management letter. C. client representation letter. D. engagement letter.
The cash flow from operations to capital expenditures ratio measures a company's ability to
a. use operations to finance its acquisitions of productive assets. b. use cash flows from capital expenditure transactions to maintain working capital. c. increase its capital expenditures as a result of profitable operations. d. pay its current bills from profits made using productive assets.
Prior to SOX, external auditors were required to be familiar with the client organization's internal controls, but not test them. Explain
When the nature of the project and the needs of the user permit, most organizations will seek a pre-coded commercial software package rather than develop a system in-house
Indicate whether the statement is true or false