Requirements for confirming accounts receivable Confirmation of accounts receivable is required under GAAS unless certain conditions exist. Identify the conditions that will be present in an audit that does not confirm accounts receivable
The auditor is required to confirm accounts receivable unless one of the following conditions exist:
? Accounts receivable are not material (or there are no receivables).
? The use of confirmations would be ineffective (recipients would not give full consideration).
? The auditor's combined assessment of inherent risk and control risk is low, and that assessment, in conjunction with the evidence provided by other substantive tests, is sufficient to reduce audit risk to an acceptably low level.
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When an elementary school teacher was returning to school in the fall, she wanted to buy markers and craft paper. She remembered the discount website she visited last year for her purchases, so she'll start there to see if the website still carries the items previously purchased. What term best describes the information search method used by the teacher?
A. personal external source B. internal search C. market-dominated external source D. public external source E. market-dominated internal source
The entry to record the purchase of treasury stock will cause total stockholders' equity to decrease by the amount of the cost of the treasury shares
Indicate whether the statement is true or false
Preston Wade Preston Wade, a local craftsman, normally sells his handcrafted wooden birdhouses for $145 each. Preston has the capacity to produce as many as 60 birdhouses a week. In a normal week, Preston makes 20 birdhouses with the following costs per unit: Direct materials $12.00 Direct labor $15.00 Variable overhead $ 3.00 Fixed overhead $ 5.00 Refer to the Preston Wade information above
Preston has received a special order from a local plant nursery for 40 birdhouses. The nursery wishes to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special engraving tool at a cost of $250. Preston requires a minimum $2,500 profit on any special order. The minimum price per birdhouse that Preston should charge the nursery is: A) $65.00. B) $98.75. C) $95.00. D) $145.00.
Which of the following laws applies to federal employees?
a. The Disability Act b. The Protection of Major Life Activities Act c. The Americans with Disabilities Act d. The Rehabilitation Act