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saveliy_v [14]
2 years ago
13

Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to?

Business
1 answer:
alisha [4.7K]2 years ago
5 0

Answer:

Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts.

<h3>How does the auditor obtain reasonable assurance?</h3>
  • In order to obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.
  • Reasonable assurance is obtained when the auditor has thereby reduced audit risk to an acceptably low level.

To learn more about it, refer

to brainly.com/question/24553900

#SPJ4

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Taxon Corp. granted restricted stock units (RSUs) representing 70 million of its $1 par common shares to executives, subject to
lara31 [8.8K]

Answer:

$168 million

Explanation:

Calculation to determine effect on earnings in the year after the shares are granted to executives

First step is to calculate the Fair value of shares represented by RSUs

Using this formula

Fair value of shares represented by RSUs=fair value per share×shares represented by RSUs shares granted

Let plug in the formula

Fair value of shares represented by RSUs=12 x 70million

Fair value of shares represented by RSUs=$840million

Now let calculate the effect on earnings

Using this formula

Effect on earnings=Fair value of shares represented by RSUs/Vesting period

Let plug in the formula

Effect on earnings= $840 million/5 years

Effect on earnings=$168 million

Therefore effect on earnings in the year after the shares are granted to executives is $168 million

7 0
3 years ago
As part of a good Section 351 transaction Andy contributes his business with a basis of $200,000 in exchange for $300,000 worth
Brums [2.3K]

Answer:

Gain = $150,000

Explanation:

Given:

Contribution = $200,000

Exchange stock = $300,000

Cash = $50,000

Find:

Gain

Computation:

Gain = Exchange stock + Cash - Contribution

Gain = $300,000 + $50,000 - $200,000

Gain = $150,000

5 0
3 years ago
A loan is a sum of money that is borrowed from a financial institution and then paid back in______
ollegr [7]

Loans are sums of money that are expected to be paid back with interest or in full

5 0
3 years ago
Read 2 more answers
In December, general motors produced 7,200 customized vans at it's plant in Detroit. The labor productivity at this plant is kno
Anna71 [15]

Answer:

average hours = 200

average hours = 166.67

Explanation:

given data

vans produced = 7,200

labor productivity = 0.10 vans per labor hour

Laborers = 360

to find out

How many hours average laborer work that month and If productivity can be increased to 0.12 then How many hours average laborer work

solution

average laborer work that month is express as

Laborers × average hours × labor productivity = vans produced

put here value

360 × average hours × 0.1 = 7200

so

average hours = 200

and

Laborers × average hours × labor productivity = vans produced

put here increase productivity

360 × average hours × 0.12 = 7200

so average hours = 166.67

5 0
3 years ago
Xenia has 10,000 people. Of this population, 1,000 residents are below age 16, and 2,000 have given up looking for work. Current
V125BC [204]

Answer:

The answer is: The unemployment rate will increase

Explanation:

To calculate unemployment rate we use the following formula:

Unemployment Rate = Number of Unemployed People / Labor Force (unemployed + employed people)

To be considered unemployed, a person must be without a job, but actively looking for one.

The unemployment rate (UR) for Xenia would be:

UR = unemployed / (unemployed + part time workers + full time workers)

UR = 500 / 7,000 = 7.14%

Currently there are 2,000 people that are not considered unemployed since they are not working but they aren't looking for a job either. For example, if 500 of those would start looking for job and became unemployed, the new unemployment rate (UR) would be: 1000 / 7,500 = 13.33%.

So if more people start looking for a job, the unemployment rate will increase.

3 0
4 years ago
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