Which of the following statements is generally correct about the appropriateness of audit evidence?
A. The more effective the internal control, the more assurance it provides about the reliability of the accounting data and financial statements.
B. Appropriateness of audit evidence refers to the amount of corroborative evidence obtained.
C. Information obtained indirectly from independent outside sources is more persuasive than the auditor's direct personal knowledge obtained through observation and inspection.
D. Appropriateness of audit evidence refers only to audit evidence obtained from outside the entity.
A. The more effective the internal control, the more assurance it provides about the reliability of the accounting data and financial statements.
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Under the Clean Air Act,
A. states and the EPA were to act as partners wherein the individual states would formulate state implementation plans to meet primary and secondary standards created by the EPA. B. the EPA formulated primary and secondary standards for air pollution; however, the individual states were not required to comply with these standards if they already had reasonable state statutes or regulations in place. C. the states were required to follow the guidelines established by the EPA and did not have the authority to create their own state plans for implementing the federal standards. D. state laws or regulations preempt or take precedence over the guidelines promulgated by the EPA.
What additional information is needed to find the rate of return on investment if income from operations is known?
A) Invested assets B) Residual income C) Direct expenses D) Sales
BioCure Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, BioCure has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, BioCure Inc. is most likely an organization that is
A. mechanistic. B. formalized. C. centralized. D. organic.
Which of the following service providers are most likely to use demand-based pricing?
A. Dentists B. Lawyers C. Doctors D. Hair stylists E. Cruise ships