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1 year ago

In the study of internal control, the auditor uses sampling to compare the to the .

1 answer:

5 0

In the study of internal control, the auditor uses sampling to compare the adjusted estimate of the deviation rate to the tolerable rate of deviation.

How Do Internal Controls Work?

A plan of structure, processes, and records that are concerned with the security of assets and the accuracy of financial records are together referred to as internal controls.

Fundamentals of Internal Control Systems

A firm's unique information requirements should be taken into account when designing an internal control system. As a result, the system might be anything from a straightforward manual system to a sophisticated computerized online system with remote terminals dispersed all over the nation. The accounting system must process data effectively, precisely, and promptly whether it is electronic or manual. An internal control system that has been carefully thought out is at the core of any well-designed accounting system.

Protecting the assets under management's control is one of their main duties.

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Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/19, net 60. Mr. Warner never takes t

vekshin1

Answer:

35.92%

Explanation:

The computation of cost of not taking the cash discount is shown below:-

Discount percentage ÷ (100 - Discount percentage) × (360 ÷ (Full Allowed Payment Days - Discount Days))

= 3% ÷ 97% × 360 ÷ (50 - 19)

= 3% ÷ 97% × 360 ÷ 31

= 0.03093 × 11.61290

= 0.359187

= 35.92%

Therefore for computing Mr. Warner's cost of not taking the cash discount we applied the above formula.

3 0

3 years ago

For which two main purposes do companies use social media?

Andrei [34K]

Corporations use social media for various purposes, but from the available options, the two ways they are most commonly used is for (B) advertise their services and check the market and (D) keep up with the latest industry news.

Advertising their services can lead to increased sales for corporations since people nowadays use their social media a lot. Keeping up with the latest industry news would also be helpful for corporations in using the right approach for advertising as well as creating product diversification that are suitable for the market they are aiming for.

7 0

3 years ago

The time required for an automotive center to complete an oil change service on an automobile approximately follows a normal di

sveticcg [70]

Let X be the time or period needed for an automobile center to finish an oil change.

X ∼ N (17, 2.5)

a)

P(X ≥ 20) = P((X - 17)/5 ≥ (20- 17)/2.5) = P(Z ≥ 1.2) = .1151 *100 = 11.51% is the answer

b)
P(X ≥ x) = 0.07

P (X - 17)/2.5 ≥ (x - 17)/2.5) = 0.07

P (Z ≥ z) = 0.07
look at the z table, 0.07 lies between 1.47 and 1.48, add and then divide you'll get:z = 1.475

1.475 = (x - 17)/2.5

x = 20.6875 ≈ 21 minutes

3 0

3 years ago

Discuss how construction of a portfolio can lower the risk of an investor.

Firdavs [7]

Answer:

Simply put, the other meaning portfolio construction is diversification of risk. Portfolio construction is the one of simplest way of reducing risk without significantly affecting the returns.

Ways of diversifying risk includes Pension Funds, Mutual Fund, Equity, Stocks, Debt / Bonds, Retirement Saving, etc. If someone had made their investment in only one asset class, then there will be less returns available with high risk. while doing portfolio investment, it will give a systematic and controlled risky investment with higher return opportunities because some assets will perform well while other do poorly. but next year scenario could be changed or reversed. There are some thumb rules while doing portfolio investment, but it can be changed based on individual's personal goal.

7 0

3 years ago

During its most recent period, Raymond Manufacturing expected Job No. 59 to cost $600,000 of overhead, $1,000,000 of materials,

xxTIMURxx [149]

Answer:

Under/over applied overhead= $70,000 overapplied

Explanation:

Giving the following information:

Job No. 59:

$600,000 of overhead

$400,000 in labor.

Raymond applied overhead based on direct labor cost.

Actual production required an overhead cost of $590,000, and $440,000 in labor.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 600,000/400,000

Predetermined manufacturing overhead rate= $1.5 per direct labor dollar

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.5*440,000

Allocated MOH= $660,000

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 590,000 - 660,000

Under/over applied overhead= $70,000 overapplied

5 0

3 years ago

In the study of internal control, the auditor uses sampling to compare the __________ to the __________.

In the study of internal control, the auditor uses sampling to compare the to the .