You are the senior auditor in charge of the audit of Potholders Ltd, a retailer of garden pots and gnomes. Your audit firm has been auditor for the last four years. Historically, the firm has had a competent and qualified internal audit team upon whose work you have placed significant reliance. Management is well respected and is viewed to have high integrity, although there was some friction last year when the auditor discovered sales cut-off errors, which reduced profit and had an adverse impact on management bonuses under the new bonus scheme. While the company has been very profitable, drought and water restrictions have placed pressure on management to maintain profitability. In planning the audit you become aware of the following facts:
1. There is a cash shortage caused by recent business expansions and falls in cash inflow.
2. The accounts payable balance has increased by 30 per cent on last year.
3. Days in debtors has increased from 45 days to 63 days.
4. Due to the difficulty of maintaining sales levels, credit checks are not always carried out.
5. Internal audit department staff levels have been halved.
6. After a recent series of thefts, control over inventory has been tightened. When goods are received they are counted and inspected and, after a pre-numbered goods received advice is prepared, the goods are moved to an enclosed storage area with adequate security, including closed-circuit TV. Goods are released from the store only upon receipt of a properly authorised requisition form.
7. In the past, all purchases were made centrally at head office. However, store managers are now asked/allowed to purchase direct from local suppliers in order to obtain inventory at lower prices and avoid transport costs. Some store managers in North Queensland are importing from Indonesia.
Required:
1. Identify each component of audit engagement.
2. Outline the facts that increase inherent risks and the facts that increase or decrease control risk
The components of audit engagement from the question are:
Cost-benefitCircumvention designsapplication of controlscontrol environment The factors that increase inherent risksThe integrity of the people that are in managerial positions. The experience and the effectiveness of managers.Pressures faced by management.The type of business.Factors that affect control risks:Presence of Novel situationsThe use of Outdated controlsImproper separation of dutiesRead more on inherent risks here: https://brainly.com/question/14538724
On January 1, 2017, Swen paid $184,000 for $200,000 of the 8%, 20-year bonds of Penn Corporation, issued on January 1, 2013, at par. The bonds are held as an investment. Determine the gain and the character of the gain if the bonds are sold on January 1, 2019, for a. $191,000 b. $185,750 C. $183,000
The determination of the gain and the character of the gain if the Penn Corporation bonds are sold by Swen on January 1, 2019, for the proceeds of each sale is as follows:
(a) (b) (c)
Sales proceeds $191,000 $185,750 $183,000
Carrying value $185,600 $185,600 $185,600
Capital gain (loss) $5,400 $150 ($2,600)
What is the carrying value of bonds?The carrying value of a bond is the net amount between the bond's face value plus (minus) any unamortized premiums or discounts.
The carrying value is the book value of the bond.
When a bond receivable is sold, capital gain or loss is realized from the sale, which gives rise to capital gain tax.
Data and Calculations:Bond's price = $184,000
Face value of bonds receivable = $200,000
Premium received = $16,000 ($200,000 - $184,000)
Interest rate = 8%
Maturity period = 20 years
Payment date = January 1, 2017
Straight-line amortization of premium = $800 ($16,000/20)
Carrying value after two years, January 1, 2019, = $185,600 ($184,000 + $1,600)
(a) (b) (c)
Sales proceeds $191,000 $185,750 $183,000
Carrying value $185,600 $185,600 $185,600
Capital gain (loss) $5,400 $150 ($2,600)
Carrying value:
Face value $200,000
Unamortized premium $14,400 ($16,000 - $1,600)
Carrying value $185,600
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), AP At the end of its first year, the trial balance of Wolowitz Company shows Equipment $30,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $3,750. Prepare the annual adjusting entry for depreciation at December 31, post the adjustments to T-accounts, and indicate the balance sheet presentation of the equipment at December 31.
Based on the depreciation balances and the equipment, the adjustments to the T-accounts and the Balance sheet will be:
Date Account title Debit Credit
December 31 Depreciation expense $3,750
Accumulated depreciation on $3,750
equipment
T account
Depreciation expense Equipment
December 31 $3,750
T account
Accumulated Depreciation on Equipment
December 31 $3,750
Balance sheet presentation
Assets
Property, Plant, and Equipment:
Equipment $30,000
Less: Accumulated depreciation ($3,750)
Equipment (Net book value) $26,250
What are the entries?Depreciation of $3,750 will be debited to the depreciation expense account. The accumulated depreciation account will be credited by the same amount.
In the balance sheet, the equipment value will be reduced by the depreciation amount to $26,250.
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What do intentional torts, negligence, and strict liability have in common?
A. They involve injury to a person or property.
B. They demonstrate a breach of duty.
C. They show that a product is flawed.
D. They show that the defendant was at fault.
The common factor between intentional torts, negligence, and strict liability is that D. They show that the defendant was at fault.
What do the above have in common?Intentional torts refer to when a person commits a wrongful action on purpose while negligence refers to a failure to uphold one's duty.
Strict liability is when a person is liable for committing what they are accused of.
In all these cases, the defendant is at fault which means that the best option is therefore option D.
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What is the final answer
Answer:
renewable resources = resources that can be replenished
nonrenewable resources = resources that are gone once they are used
producer = person who makes goods or provides services
consumer = person whose wants are satisfied by using goods and services
allocate = distribute
choice = option
An oligopoly can be described as an industry in which _____ .
Select one:
a) 7-9 companies produce half of the output
b)one company produces most of the output
c)3-5 companies produce most of the output
d)7-9 companies produce most of the output
Answer:
c
Explanation:
(C) 3-5 companies produce most of the output.
Oligopoly:A market structure known as an oligopoly occurs when a few large sellers or manufacturers control a sizable portion of a market or an entire sector. Oligopolies are frequently the outcome of corporate collaboration as a way to increase profits. Because of the decreased competition, customers will pay more and workers will earn less.Many industries, including civil aviation, energy providers, the telecommunications industry, rail freight markets, food processing, funeral services, sugar refining, beer production, pulp and paper manufacturing, and auto manufacturing, have been identified as being oligopolistic.Therefore, an oligopoly can be described as an industry in which (C) 3-5 companies produce most of the output.
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A manager with _____ skills has the ability to deal effectively with people inside and outside the organization.
Answer:
Interpersonal
Explanation:
PLEASE MARK ME AS BRAINLIEST AND HAVE A NICE DAY :)
The journal entry to record the amortization of a bond discount would include a __________ to __________.
a. debit; Discount on Bonds Payable
b. credit; Discount on Bonds Payable
c. credit; Interest Expense
d. debit; Cash
Answer:
b. credit; Discount on Bonds Payable
Explanation
What are the similarity and common characteristics of regulation, rule and policy?
Answer:
Policies are the rules and regulations that serve as a guiding principle for the organization while making decisions. On the other hand, procedures are the precise steps that are followed while carrying out an organization activity.
There is always a relation between them: Policies are rules that are made by organizations, to achieve their aims and goals. Policies are made by individuals, groups, companies, and even governments to carry out their plans. Regulations are rules that are made to make people comply and behave in a certain manner.
There is usually a relationship between rules, regulations, and Policies.
What is the relation between Policy and Regulations?Policies are rules that might be made through organizations, to reap their objectives and goals.
Policies are made through individuals, groups, companies, or even governments to perform their plans. Regulations are rules that might be made to make humans comply and behave in a sure manner.
Hence, these are the similarities and common characteristics of regulation, rule, and policy.
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PLEASE HELP ME I WILL MARK BRAINLIEST
Answer:
try taking a better picture I can really see your assignment
Explanation:
sorry
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 4 pounds at $8 per pound$ 32 Direct labor: 2 hours at $16 per hour32 Variable overhead: 2 hours at $6 per hour12 Total standard cost per unit$ 76 The planning budget for March was based on producing and selling 32,000 units. However, during March the company actually produced and sold 37,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $7.40 per pound. All of this material was used in production. Direct laborers worked 67,000 hours at a rate of $17 per hour. Total variable manufacturing overhead for the month was $422,100. rev: 11_20_2017_QC_CS-109672 6. If Preble had purchased 182,000 pounds of materials at $7.40 per pound and used 160,000 pounds in production, what would be the materials quantity variance for March
The materials quantity variance for March for Preble Company, which manufactures a product, is $96,000 Unfavorable.
What is a materials quantity variance?A material quantity variance shows the difference between the actual materials consumed and the budgeted amount in production.
Computing the materials quantity variance helps management to determine the production efficiency.
The materials quantity variance can be computed using the following formula:
Materials Quantity Variance = (Standard Quantity Units – Actual Quantity Units ) ✕ Standard Cost Per Unit.
Data and Calculations:Planned production and sales units = 32,000 units
Actual production and sales units = 37,000 units
Standard Costs:Direct materials: 4 pounds at $8 per pound $ 32
Direct labor: 2 hours at $16 per hour 32
Variable overhead: 2 hours at $6 per hour 12
Total standard cost per unit $ 76
Actual Costs:Purchase of raw materials = 160,000 pounds
Cost of purchase per pound = $7.40
Direct labor hours = 67,000 hours
Direct labor rate = $17 per hour
Total variable manufacturing overhead = $422,100
Materials Quantity Variance = (Standard Quantity Units – Actual Quantity Units ) ✕ Standard Cost Per Unit.
= (37,000 x 4 - 160,000) x $8
= $96,000 Unfavorable
Thus, the materials quantity variance for March for Preble Company is $96,000 Unfavorable.
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Mention the things should be considered while selection of profession and formation of plan.
There are several factors that must be considered when choosing a profession and forming a career plan, such as the personality and interests of the individual.
How to choose the ideal profession?It is essential that the student does in-depth research on the fields of greatest interest, seeking support from sources that explain the professional area, responsibilities and development. It is also helpful to ask yourself a few questions, such as:
What are your interests?What are your skills?How is your personality?What academic training is required?Therefore, the choice of the appropriate profession must be personal and conducted in a consistent manner, as this choice will impact on different areas of the individual's personal and professional life.
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Sophie's dorm room was hot since she did not have air conditioning. She decided to buy a new fan.
What type of consumer behavior influence below does this scenario describe?
Answer:
The type of consumer behavior this scenario describes is psychological consumer behavior.
Saying "We can certainly look at replacing your phone with a refurbished model" rather than saying "Unfortunately, we can't replace your
phone with a new one." is an example of
a. assertive communication
O b. escalating the interaction
O c.active listening
O d. maximizing positive language
Answer:
Explanation:
Maximizing Positive Language.
We are saying we can do something - perhaps not what the customer wants, but it is something. That's saying what you can do, not what you won't. Answer A
You are not actively listening. You are talking. Not C
You are not being assertive. You are trying to negotiate. Not A
The second choice (escalating the interaction) would be what the second response would be doing. It's almost a rude statement. Not B
Please select the word from the list that best fits the definition
Requires accuracy and privacy of information contained in credit reports.
Answer:
they contains main
primary credit report
The Chief Strategy Officer for Miles Corporation is putting together a presentation using the Boston Consulting Group Matrix. The corporations pet products division has a low market share, but the pet products market is growing rapidly. This division should be placed in the _____________ quadrant of the BCG Matrix.
Cash cow
kitten
star
question mark
dog
The quadrant that the division on pet products should be placed on the BCG Matrix is the Question Mark.
What is the Question Mark quadrant?Companies and divisions that are put in the question mark quadrant of the BCG matrix are in markets that have a high rate of growth.
This hight rate of growth is however countered by the low market share that the division or company has much like the pet products division described above.
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Using the interest method, the journal entry to record the first interest payment and the related amortization for bonds issued at a premium includes a __________ to __________.
debit; Premium on Bonds Payable
debit; Cash
credit; Premium on Bonds Payable
credit; Interest Expense
Match Panel B with Panel A.
Panel A
1-Private sector
2-incorporated business
3-unincorporated business
4-sued
5-legal person
6-Types of businesses
Panel B
A. Private business
B. Sector of businesses set up by individuals or
groups of individuals.
C. Business organization types
D. Public company or corporation.
E. Responsibility and liability as a person.
F. Taken to court or can be accused.
Answer:
1,D2,A3B4C5,E6F the answer of this question is this
1. How would you market a health club in the south versus the East Coast or West Coast?
I will market a health club in the south through the use of Social Proof. Social proof, Targeted Email Marketing, the use of Website and Mobile App to push Referrals.
What is the aim of a health club?Health clubs are known to be as fitness centers or gyms. They are known to often give some specific services to make sure that members can be able to meet their fitness goals or purpose.
Note that Health clubs are an efficient tool way to spice up one's routine. I will market a health club in East Coast or West Coast through the use of gyms influencers, giveaway or the use of contest.
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Cert 4 real estate if an agent (A)_ that (B)_ or creates an (C)_ when there is (D) _ , they expose themselves to (E) _
The cert 4 is an illustration of real estate practices
The statements that complete the blanks are: A = provides; B = information; C = impression; D = no reasonable foundation; E = misrepresentation
What is the cert 4?The cert IV or cert 4 is a certificate that given an individual the licence to apply for the class 2 real estate agent practice, and it also helps the individual to perform real estate practices successfully.
How to complete the blanks?Under the business management law of real estate practices, we have the following estate practice law:
"If an agent provides information or creates an impression when there is no reasonable foundation, then they expose themselves to misrepresentation."
Using the above as a guide, the statements that complete the blanks are:
A = provides; B = information; C = impression; D = no reasonable foundation; E = misrepresentation
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Any portion of the bonds payable that is due within one year is
a. reported as a current liability on the balance sheet.
b. reported as a noncurrent liability on the balance sheet.
c. disclosed in the notes to the financial statements only.
d. not reported or disclosed in any way.
Madeline and Shonda are developing a project together. They just found out their client wants the finished product one month sooner than they expected. Madeline advocates eliminating the product testing step. Shonda believes they should change how the product is produced so that they can still perform all product testing. If they use the collaborating conflict style, what may occur next
Madeline and Shonda will brainstorm until a third mutually beneficial option is agreed upon if they should change how the product is produced so that they can still perform all product testing.
What is product development?Product development is the process of creating a new product or improving an existing one. It is the complete process of bringing a new product to market, renewing an existing product.
During the idea generation stage of the new product development process, it is important that all ideas that come from brainstorming are good.
Hence, if Madeline and Shonda use collaborating conflict style, they will brainstorm until a third mutually beneficial option is agreed upon.
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A potential legal claim which is probable and the amount can be reasonably estimated should be: multiple choice recorded in the financial statements as a contingent liability. disclosed in the notes while the lawsuit is outstanding. disclosed in the notes when the lawsuit is settled. is a potential liability that has arisen because of a past event or transaction.
A potential legal claim which is probable and the amount can be reasonably estimated should recorded in the financial statements as a contingent liability.
What is Legal claim?A legal claim are evidence or prove which someone says.
They are legal claims over an individual and the amount estimated will be paid.
Therefore, A potential legal claim which is probable and the amount can be reasonably estimated should recorded in the financial statements as a contingent liability.
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3. A U.S. MNC needs to raise capital of $100 million by issuing bonds. The firm can either raise US$ at 5% interest rate or issue foreign bond in Germany denominated in Euro at 6%. The Euro is expected to depreciate by 2% in the following year. What is the best alternative and how much is the effective dollar cost
1. The best alternative for raising $100 million in bonds is B. Borrow Euro.
2. The effective dollar cost of the U.S. MNC is B. approximately 5%.
What is the effect of borrowing the Euro?If the U.S. multinational company (MNC) borrows the $100 million by issuing Euro bonds, it will cost it $5 million annually but it will gain from the depreciation of the Euro by 2%.
The depreciation of the Euro reduces the effective interest rate of 6% for borrowing in the Euro to 4% (6% - 2%).
Answer Options:A. Borrow dollars and the effective dollar cost is approximately 4%.
B. Borrow Euro and the effective dollar cost is approximately 5%.
C. Borrow Euro and the effective dollar cost is approximately 7%.
D. Borrow dollars and the effective dollar cost is approximately 5%.
Thus, the best alternative and the effective dollar cost of the U.S. MNC raising capital of $100 million through the issuance of bonds is B. Borrow Euro and the effective dollar cost is approximately 5%.
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What is true about people who have
credit cards?
A. They are extremely wealthy.
B. They are extremely poor.
C. They have a limit on the dollar amount they can
charge.
D. They do not have a limit on the dollar amount they
can charge.
Good planning and wise use of insurance can eliminate all risk. True or false?
Answer:
False.
Explanation:
Good planning and wise use of insurance are some ways you can reduce risk, but it won't eliminate all risk.
Nicholas, Inc. has provided the following unit data for review: Simple ProductAdvanced Product Selling price$22.75$55.00 Variable cost10.0034.50 Pounds of scarce raw material per unit35 Which product, Simple or Advanced, is most profitable for Nicholas, Inc. to manufacture
The most profitable product for Nicholas, Inc. to manufacture based on unit data and contribution margin per unit of a scarce resource is Advanced Product.
What is a profitable product?A profitable product is one whose sales revenue covers the costs of production, selling, and administrative support.
A profitable product can be determined by determining the contribution margin per unit and dividing this by the units of a scarce resource that it consumes. The result is the contribution margin per unit of the scarce resource.
Thus, the product that yields the higher contribution margin per unit of a scarce resource is preferable to the rest.
Data and Calculations:Simple Product Advanced Product
Selling price $22.75 $55.00
Variable cost 10.00 34.50
Contribution margin per unit $12.75 $20.50
Pounds of scarce raw material per unit 35 35
Contribution margin per scare resource $0.364 $0.586
Thus, the most profitable product for Nicholas, Inc. to manufacture based on the given unit data and the contribution margin per unit of a scarce resource is the Advanced Product.
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BUSINESS LAW- TRUE OR FALSE
1. Under the UCC, a contract will generally fail because one or more terms are left open,
2. A contract without a quantity term is valid.
4. A contract for services is specifically covered by the UCC.
5. Whether there has been an offer is determined by a subjecive standard.
6. A says to B: "I am going to sell my car for $2,000." B says: "I accept, here is my check." Thierë
is a contract.
7. Offers made in jest are always invalid.
8. B agrees to buy all of her requireinents from S. S agress. The contract fails for lack of a definite
quantity term.
9. A writes to B: "I will offer you S20 a week if you will give violin lessons to my son. You have 30
days in which to reply to this offer." B is still thinking about it when a purporis to revoke 15
days later. B can nonetheless accept.
10. When an offeree learns from a third party that the offeror has sold the goods. the offer is re-
voked.
11. The modern view is that once the offeree of a unilateral contract begins to perionin, the offeror
inay not revoke his promise.
12. An offer continues until there is an express revocation of the offer.
13. A offers to sell his watch to B for 100. B says she will take it for 575. B may laier accept the offer
for S100.
14. A offers to sell his watch 10 B for $100.1 gives a 55 to keep the offer open. A may not revoke.
15. Under the UCC, a non-merchant may make her offer irrevocable without consideration.
16. In general, an offeree must affirmatively convey his or her intention to accept an offer to enter in
to a bilateral contract
17. A says to B:"If you paint my house, I will give you 5100." B promises to paint a's house. There
is a contract.
18. At common law, an offeree may request additional terms in accepting the offer.
19. Merchant S accepts Merchant B's offer with an additional clause providing for reasonable in
terest for overdue invoices. The additional clause is part of the contract.
20. Revocation of an offer sent by mail is elfective upon receipt.
21.. lla ained for forbearance of a legal right will constitut esileration
22. B agrees to buy a house offered by S if B gets a bank loan. There is a contract
A statement that is valid according to law of contract will be termed true while an invalid one is termed false.
Validity of the statementsUnder the UCC, a contract will generally fail because one or more terms are left open, (TRUE)A contract without a quantity term is valid. (TRUE)A contract for services is specifically covered by the UCC. TRUEWhether there has been an offer is determined by a subjecive standard. TRUEA says to B: "I am going to sell my car for $2,000." B says: "I accept, here is my check." There is a contract. TRUEOffers made in jest are always invalid. FALSEB agrees to buy all of her requirements from S. S agrees. The contract fails for lack of a definite quantity term. TRUEA writes to B: "I will offer you S20 a week if you will give violin lessons to my son. You have 30days in which to reply to this offer." B is still thinking about it when a purporis to revoke 15days later. B can nonetheless accept. TRUEWhen an offeree learns from a third party that the offeror has sold the goods. the offer is re-voked. TRUEThe modern view is that once the offeree of a unilateral contract begins to perionin, the offeror may not revoke his promise. FALSEAn offer continues until there is an express revocation of the offer. TRUEA offers to sell his watch to B for 100. B says she will take it for 575. B may laier accept the offer for S100. TRUEA offers to sell his watch 10 B for $100.1 gives a 55 to keep the offer open. A may not revoke. TRUEUnder the UCC, a non-merchant may make her offer irrevocable without consideration. TRUEIn general, an offeree must affirmatively convey his or her intention to accept an offer to enter into a bilateral contract TRUEA says to B:"If you paint my house, I will give you 5100." B promises to paint a's house. Thereis a contract. TRUEAt common law, an offeree may request additional terms in accepting the offer. TRUEMerchant S accepts Merchant B's offer with an additional clause providing for reasonable interest for overdue invoices. The additional clause is part of the contract. TRUERevocation of an offer sent by mail is elfective upon receipt. TRUElla ained for forbearance of a legal right will constitut esileration TRUEB agrees to buy a house offered by S if B gets a bank loan. There is a contract TRUELaw of contractLaw of contract is an agreement between private parties creating mutual obligations enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
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who is me are you ok.
Answer:
I am ok, and you are a human being. Or are you...?
Describe and evaluate the elements of the carrying cost of inventory and how it relates to inventory levels and capital investment. How does ABC inventory stratification affect the carrying cost equation
1. The elements of the carrying cost of inventory include the following:
Capital costInventory service costInventory risk costStorage space cost.2. The relationship between the carrying cost of inventory and the inventory levels and capital investment is shown by the Economic Order Quantity (EOQ) Model.
The EOQ model defines that there will be an increased carrying cost of inventory when the inventory order is above the EOQ level, which also results in increased capital investment for the purchase of inventory that is kept in stock for a long period.
Thus, the carrying cost of inventory and the inventory levels and capital investment have a linear relationship. When one element increases, the other two elements will also increase.
3. ABC Inventory stratification helps management to reduce the carrying cost equation since it divides the inventory into many classifications to ensure the matching of inventory levels based on their annual requirements or demand.
What is inventory?Inventory refers to the stock of goods that a company holds at the end of the trading period because it has remained unsold to outside parties.
Inventory is one of the current assets used in determining the current ratio.
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