Which situation would most likely require special audit planning by the auditors?
A. Assets costing less than $500 are expensed even though the expected life exceeds one year.
B. The investment portfolio has several complex financial instruments, such as derivatives.
C. Some items of factory and office equipment do not bear identification numbers.
D. Depreciation methods used on the client's tax return differ from those used on the books.
Answer: B
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If 800 shares of $40 par common stock are sold for $43,000, the $43,000 would be reported in the cash flows fromfinancing activities section of the statement of cash flows
a. True b. False Indicate whether the statement is true or false
A limit test is a:
A. check to ensure that the data in a field have the proper arithmetic sign. B. check to ensure that the value in a field falls within an allowable range of values. C. check on a field to ensure that it contains either all numeric or alphabetic characters. D. test to ensure that a numerical value does not exceed some predetermined value.
Intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by
A. attracting and retaining knowledgeable workers. B. decreasing labour costs. C. increasing the turnover of employees. D. increasing retention of below average workers.
Which of the following items would not be found on a contribution format income statement?
A. Net income B. Fixed cost C. Gross margin D. Variable cost