Which of the following statements is generally correct about the appropriateness of audit evidence?
A. Appropriateness of audit evidence refers only to audit evidence obtained from outside the entity.
B. The more effective the internal control, the more assurance it provides about the reliability of the accounting data and financial statements.
C. Appropriateness of audit evidence refers to the amount of corroborative evidence obtained.
D. Information obtained indirectly from independent outside sources is more persuasive than the auditor's direct personal knowledge obtained through observation and inspection.
Answer: B
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The hypothesis is true (supported) if the sample result falls between + or – 1.96 standardized errors
Indicate whether the statement is true or false
Contingency plans include sets of actions to be taken when
A. a company's growth exceeds all expectations. B. the internal environment needs to be shaken up. C. the internal and external environments are similar. D. the external environment is extremely stable. E. a company's initial plans have not worked out well.
Underapplied factory overhead that is immaterial in amount is closed to ??????????????????????????????????? at year end
Fitzpatrick Company had $500 of accrued salary expenses that will be paid during the following accounting period. How would the related adjusting entry be recorded in the company's T-accounts?
A.
| Salaries Expense | |
| 500 | |
| Cash | |
| 500 | |
B.
| Salaries Expense | |
| 500 | |
| Salaries Payable | |
| 500 | |
C.
| Cash | |
| 500 | |
| Salaries Expense | |
| 500 | |
D.
| Salaries Payable | |
| 500 | |
| Salaries Expense | |
| 500 | |