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uysha [10]
2 years ago
12

michael was on the abc accounting firm's audit team for the rasmussen corporation audit. rasmussen's officers were so impressed

with michael that they offered him a job as director of internal audit at rasmussen. what should michael do in order to preserve independence?
Business
1 answer:
nirvana33 [79]2 years ago
6 0

In order to preserve independence, Michael must "Remove himself from the engagement as he considers the offer." (Option B). It is to be noted that this is an internal control problem.

<h3>What is Independence in this case?</h3>

The absence of situations that jeopardize the internal audit activity's capacity to carry out internal audit tasks objectively is called Independence.

Practically, independence is achieved by ensuring that the internal audit activity has no management control for any of the organization's non-audit functions that are subject to internal audit assessments, and by distancing the internal audit activity's management from the functional oversight of the organization's senior management.

Learn more about internal control:
brainly.com/question/26398073
#SPJ1

Full Question:

Michael was on the ABC Accounting Firm's audit team for the Rasmussen Corporation audit. Rasmussen's officers were so impressed with Michael that they offered him a job as Director of Internal Audit at Rasmussen. What should Michael do in order to preserve independence?

A) Tell his superiors as soon as he has decided whether or not to accept the offer.

B) Remove himself from the engagement as he considers the offer.

C) Pray for divine guidance.

D) If he decides to reject the offer, remove himself permanently from the engagement.

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Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On Decemb
Artist 52 [7]

Answer:

Dr. Trading securities                                    $4,800  

Cr. Unrealized gain on trading securities    $4,800

Explanation:

Trading securities are recorded reported on the fair market value. The gain or loss arise from the increase or decrease in the value of trading securities. There is a gain if the price of trading security increases and loss when the price of the trading security decreases. Unrealized gains are reported in the separate section of stockholders equity.

Gain on Trading securities = Fair value of security portfolio - Cost of security portfolio = $46,300 - $41,500 = $4,800  

6 0
3 years ago
The sarbanes-oxley act created the ____ to protect the interests of investors and further"
UNO [17]

Answer:

federal laws

Explanation:

The sarbanes-oxley act is a Federal legislation that was passed in the US on 30th July 2002. to reform, protect the accounting and corporate financial sector which includes the interest of the investors. Note: an act consist of written laws and it is made by the legislative arm of the government.

4 0
3 years ago
Identify the incorrect statement concerning globalization. A. It has been blamed for unemployment in developed nations, environm
konstantin123 [22]

Answer:

C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition.

Explanation:

Globalization is integration of world economies. it has created threat to the employment opportunities in the developed countries since the large number of jobs are being outsourced to other countries.

3 0
3 years ago
Fred and Barney started a partnership. Fred invested $20,000 in the business and Barney invested $32,000. The partnership agreem
svet-max [94.6K]

Answer:

The amount of income assigned to the two partners would be $18,100 and $19,900 respectively.

Explanation:

For computing the amount of income assigned to the two partners, we have to do the following calculations which are shown below:

1. Dividend amount for each partner:

For Fred = Invested amount × rate of return

              = $20,000 × 15%

              =$3,000

For Barney =  Invested amount × rate of return

                  = $32,000 × 15%

                  = $4,800

The total dividend amount equals to

= Fred dividend + barney dividend

= $3,000 + $4,800

= $7,800

2. Now compute the remaining amount, and divide it in the sharing ratio

So, the remaining amount would be

= Partnership income - total dividend amount

= $38,000 - $7,800

= $30,200

So the Fred income would be = $30,200 × 50% = $15,100

And, the barney income would be = $30,200 × 50% = $15,100

So, the amount of income:

For Fred = Dividend income + remaining income

              = $3,000 + $15,100

              = $18,100

For Barney = Dividend income + remaining income

                   =$4,800 + $15,100

                   = $19,900

Hence, the amount of income assigned to the two partners would be $18,100 and $19,900 respectively.

8 0
3 years ago
Jerome is the hr manager for the xyz company. He has committed to monitoring more hr activities​ (such as time to hire and cost
bija089 [108]

There are five commonly known management functions: <u>planning, organizing, staffing, directing, and controlling. </u>

The management function that Jerome is engaging in when he’s monitoring time to hire and cost of hires is called controlling.

Controlling is defined as <em>ensuring that things are going well by measuring the rights metrics and comparing to expected performance, as well as taking corrective actions when necessary. </em>


5 0
3 years ago
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