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1 year ago

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

Business

1 answer:

alisha [4.7K]1 year 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.

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Based upon the following data, which of the following mutually exclusive projects should you choose if your required return is 1

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Answer:

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $80

Cash flow in year 2 = $40

Cash flow in year 3 = $40

Cash flow in year 4 = $30

I = 10%

NPV = 6.33

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $40

Cash flow in year 2 = $50

Cash flow in year 3 = $60

Cash flow in year 4 = $55

I = 10%

NPV = 10.33

Project B has a higher NPV and it should be chosen

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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3 years ago

Two mutually exclusive investment opportunities require an initial investment of $7 million. Investment A pays $1.5 million per

Nataly_w [17]

Answer:The cost of capital that will make both investments equal is 17.045%

Explanation:

Investment A

$1.5 million will be received in perpetuity we can there use perpetuity formula to Value investment A.

Value of Investment A = 1500 000/r

Investment B

$1.2 Million will be received in Investment B with a growth rate of 3% will then use Gordon's growth rate model to value investment B.

Value of investment B = (1200 000 x (1+0.03))/(r - 0.03)

Value of investment B = 1236000/(r - 0.03)

1500 000/r = 1236000/(r - 0.03)

1236000(r) = 1500000(r - 0.03)

(r - 0.03) = 1236000( r)/1500000

r - 0.03 = 0.824r

r - 0.824r = 0.03 = 0.176r = 0.03

r = 0.03/0.176 = 0.170454545

R = 17.045%

The cost of capital that will make both investments to be equal is 17.045%

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15 POINTS IF U ANSWER NOW!!!!! Which non-income factor for a potential job promotion would influence a person whose mother needs

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Answer:

D. Family

Explanation:

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2 years ago

Richard Redden, the sole stockholder, contributed $71,000 in cash and land worth $132,000 in exchange for common stock to open a

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Answer: C. Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.

Explanation:

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