What are the auditor's concerns in testing EDI controls?
When testing EDI controls, the auditor's primary concerns are related to ascertaining that EDI transactions are authorized, validated, and in compliance with organization policy, that no unauthorized organizations gain access to records, that authorized trading partners have access only to approved data, and that adequate controls are in place to maintain a complete audit trail.
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When evaluating the quality of accounting information the user should consider the _____________________________________________ of the measurements made
Fill in the blank(s) with correct word
During March, Department A started 300,000 units of product in a particular production process. The beginning work in process inventory was 50,000 units, and the ending inventory was 40,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs. Department A uses the FIFO
costing method. Units transferred out during March were a. 310,000. b. 290,000. c. 320,000. d. 350,000.
Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning
Indicate whether the statement is true or false.
Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation: Carolina CompanyIncome Statement For the year ended December 31Sales$60,000Cost of goods sold23,000Gross profit$37,000Expenses13,000Income before taxes$24,000Carolina's ending inventory using the LIFO method was $8,700. Carolina's accountant determined that had the company used FIFO, the ending inventory would have been $9,100.a. Determine what the income before taxes would have been, had Carolina used the FIFO method of inventory valuation instead of LIFO.b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate?c. If Carolina wanted to lower the amount of income taxes to be paid, which
method would it choose? What will be an ideal response?