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SSSSS [86.1K]
3 years ago
10

Smith, CPA, is a partner of Johnson Accounting Firm. Johnson audited the books of Hometown Bank. Smith's independence would be i

mpaired under which of the following circumstances?
Business
1 answer:
borishaifa [10]3 years ago
3 0

Answer:

A. Smith is a Director of Hometown Bank

Explanation:

First, the multiple Options

a. Smith is a director of Hometown Bank.

b. Smith has a collateralized automobile loan with Hometown Bank.

c. Smith had an account with Hometown Bank 2 years ago.

d. Smith and a Hometown Bank board member belong to the same church.

Basically, there are 5 characteristics of an auditor whose responsibility is access the financial statement of an organisation and give a true and fair report on the state of the business. One of these characteristics is Independence and Objectivity.

When there are potential risks to the ability of the auditor to give a true and fair view of the audited books, the we say the auditor's independence is impaired.

An auditor's independence is impaired as a result of business relationship with clients. This includes any form of business association with client as manager, employee, director among others.

Based on these definitions, Smith as a director of Hometown Bank and a partner of Johnson Accounting firm risks the impairment of his independence because of the business relationship of being a Director with the client.

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Which of these statements is true of the hiring process
aleksandr82 [10.1K]
What are the choices?

8 0
2 years ago
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Josefina is the only seller of sopapillas in town. Last week, she sold 200 sopapillas, and the marginal revenue of the 200th sop
Alex73 [517]

Answer:

Josefina is not maximizing her profits since she is making a loss of $0.25.

Explanation:

The marginal revenue is the total amount of revenue received from selling an additional unit of product while the marginal cost is the total cost incurred for producing an additional unit of product. The marginal cost and revenue can be compared to determine if producing and selling an additional unit is profitable or will cause a loss.

The profit/loss can be expressed as;

P/L=R-C

where;

P=profit

L=loss

R=total marginal revenue

C=total marginal cost

In our case;

P/L=unknown

R=marginal revenue per unit×number of units=1.50×1=$1.50

C=marginal cost per unit×number of units=$1.75×1=$1.75

replacing;

P/L=1.50-1.75=-$0.25

Since the marginal cost is greater than the marginal revenue, we can conclude that Josefina is making a loss of $0.25

7 0
2 years ago
If a company is eliminating certain models of a product and cutting back on expenditures, the product is most likely in the ____
Airida [17]
I would have to say decline
4 0
3 years ago
Tony works in purchasing for the Epic Electronics on the East Coast. He arrives at work at 6:00 a.m. and leaves by 3:00 p.m. He
Vikki [24]

A. the company is required to hire twice as many people and spend additional funds training these individuals.

B. there is a one-hour window of opportunity to talk with employees on the West Coast, who work 8:00 a.m. to 5:00 p.m.

C. morning workers are never as productive as afternoon workers.

D. this system will increase absenteeism.

There is a one-hour window of opportunity to talk with employees on the West Coast, who work 8:00 a.m. to 5:00 p.m.

Answer: Option B.

<u>Explanation:</u>

Flex time is the time that the company or the organisation offers to some of the employees of the organisation which is not the same as the regular working time of the other organisations. These employees who work for flex time sometimes pose to be a problem for the company.

Because of the organisation flex time that has been offered by the organisation to Tony, this will pose a disadvantage and a problem to the company. Tony will not be able to talk in the one hour window talking like the other employees of the company.

5 0
3 years ago
Question Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that
Vanyuwa [196]

Answer:

Deposited amount will decrease by 1% and $2,000

Explanation:

Inflation rate will effect the value of money due to decrease in purchasing power of the currency holder.

We will use following formula to calculate the impact

Nominal rate = Real interest rate + Inflation rate

5% = Real interest rate + 6%

Real interest rate = 5% - 6% = -1%

The deposited amount will be decreased by 1%.

Deposit value = $200,000 x ( 1 - 1% ) = $198,000

Decrease in value = $200,000 - $198,000 = $2,000

6 0
3 years ago
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