The concept of reasonable assurance in the context of an entity's internal controls recognizes that:
A. the costs of some controls may be too high to implement in relation to potential benefits.
B. proper internal controls guarantee that material misstatements will not occur.
C. proper internal controls preclude fraud.
D. auditors may fail to detect material misstatements.
Answer: A
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Business Process Modeling Notation (BPMN) start events are shown using ovals and flowchart start events are shown using circles.
Answer the following statement true (T) or false (F)
The auditor multiplies the quantity of inventory on the inventory ledger by the cost of the inventory to arrive at total inventory balance per product number. This is an example of recalculation by footing
a. True b. False Indicate whether the statement is true or false
An example of a low-cost forecasting technique is ______.
a. times series models b. scenario development c. econometric models d. multiple regression
Brink Financial Advisors provides accounting and finance assistance to customers in the retail business. Brink has four professionals on staff, plus an office with six clerical staff. Total compensation, including benefits, for the professional staff runs up to $800,000 per year, and normal billable hours are about 3300 billable hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $270,000. Brink allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. During July, Brink's professionals spent 42 hours on their client, Waseca Sales. Brink adds a 30% markup on its costs to calculate the amount billed to the customer. H
A) $13,618.08 B) $3054.492 C) $3436 D) $4085