A limitation on the scope of an audit sufficient to preclude an unmodified opinion is most likely to result when management
A. Engages the auditor after the year-end physical inventory count is completed.
B. Fails to correct a material internal control weakness that had been identified during the prior year's audit.
C. Refuses to furnish a management representation letter to the auditor.
D. Prevents the auditor from reviewing the audit documentation of the predecessor auditor.
Ans: C. Refuses to furnish a management representation letter to the auditor.
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Which of the following budgets or schedules uses data contained in the selling and administrative expense budget?
A. Inventory purchases budget B. Cash payments schedule C. Sales budget D. Cash receipts schedule
Shank Corporation uses a different depreciation method for its income tax return than it does for its income statement. Consequently, the corporation has a credit balance in its Deferred Income Taxes account. This balance should be classified as a
a. current asset. b. long-term liability. c. current liability. d. long-term asset.
Which of the following statements about budgeting is false?
A. Budgeting forces managers to think ahead and formalize future objectives. B. The master budget should only be prepared by top management. C. Budgets create standards for performance evaluation. D. Budgeting is an aid to planning and control. E. Budgets help coordinate the activities of the entire organization.
Answer the following statement(s) true (T) or false (F)
1. Union contracts do not contain grievance procedures. 2. Unions can be decertified through an election process. 3. Compensation components include all rewards that can be classified as monetary payments and in-kind payments. 4. Compensation components only include monetary payments to an employee. 5. When we design compensation programs, we are trying to motivate the employee to do the things that we need them to do, consistently, over a period of time.