Distinguish between errors and irregularities. Which do you think concern the auditors the most?
Errors are unintentional mistakes; while irregularities are intentional misrepresentations to perpetrate a fraud or mislead the users of financial statements. Errors are a concern if they are numerous or sizable enough to cause the financial statements to be materially misstated. Processes which involve human actions will contain some amount of human error. Computer processes should only contain errors if the programs are erroneous, or if systems operating procedures are not being closely and competently followed. Errors are typically much easier to uncover than misrepresentations, thus auditors typically are more concerned whether they have uncovered any and all irregularities.
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The following information relates to Aracely Inc at December 31 . 2014: Fair value of plan assets ............................. $1,520,000 Market related asset value ............................ 1,440,000 Accumulated benefit obligation ........................ 1,960,000 Projected benefit obligation .......................... 2,040,000 Unrecognized prior service cost ....................... 24,000
The total pension liability at December 31 . 2014, for Aracely Inc is a. $0. b. $440,000. c. $480,000. d. $520,000.
Part of Eric's job is __________, which requires him to perform systematic, regular monitoring of major external forces that influence the organization.
A. demand forecasting B. environmental scanning C. exception reporting D. influence analysis
Which of the following is NOT a process modeling deliverable?
A) A context data-flow diagram B) Thorough descriptions of each DFD component C) DFDs of the current physical system D) An entity relationship diagram E) DFDs of the new logical system
Answer the following statements true (T) or false (F)
1) A sourcing strategy for items in the bottleneck quadrant will be to narrow the specifications to allow for more product options. 2) A sourcing strategy for items in the leverage quadrant will be to build long-term alliances with a few suppliers. 3) A sourcing strategy for items in the critical quadrant will be to prepare contingency plans to protect against unforeseen risks. 4) A sourcing strategy for items in the routine quadrant will be to simplify the acquisition process. 5) The spend on any item that supports the operation of the firm is categorized within the direct spend category.