After completing the preliminary phase of the review of internal control, the auditor decides not to rely on the system to restrict substantive procedures. Documentation may be limited to the auditor's:
A. basis for concluding that errors and fraud will be prevented.
B. reasons for deciding not to extend the review.
C. completed internal control questionnaire.
D. understanding of the internal control.
Answer: D
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Failure to record amounts earned for services provided to customers but not yet paid results in which of the following
a. Net income being overstated b. No effect on total assets c. Stockholders' equity being overstated d. Total assets being understated
If bonds are issued at 101.25, this means that
a. a $1,000 bond sold for $101.25. b. the bonds sold at a discount. c. a $1,000 bond sold for $1,012.50. d. the bond rate of interest is 10.13% of the market rate of interest.
According to Marshall McLuhan's statement that "the medium is the message," a great speaker can succeed only with well-developed message content
Indicate whether the statement is true or false
Identify at least two characteristics of a lean production and just-in-time (JIT) manufacturing environment