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EleoNora [17]
3 years ago
10

An auditor knew that the purpose of her audit was to render reasonable assurance on financial statements that were to be used fo

r the application for a loan; the auditor did not know the identity of the bank that would eventually give the loan. under the restatement of torts approach to liability the auditor is generally liable to the bank which subsequently grants the loan for:
a. lack of due diligence.
b. lack of good faith.
c. gross negligence, but not ordinary negligence.
d. either ordinary or gross negligence.
Business
1 answer:
FinnZ [79.3K]3 years ago
8 0
<span>The auditor is generally liable to the bank which subsequently grants the loan for either ordinary or gross negligence.Gross negligence is defined as the extraordinary lack of regard that shows wilful or heedless carelessness for the outcomes to the security or property of another.On the off chance that one has acquired or contracted to deal with another's property, at that point net carelessness is the inability to effectively take the care one would of his/her own property. In the event that gross carelessness is found by the jugde it can bring about the honor of correctional harms over general and extraordinary harms.</span>
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Which of the following is a true statement about an auditor’s responsibility regarding consideration of fraud in a financial sta
Olegator [25]

Answer:

D. The auditor should assess the risks of material mis-statement due to fraud.

Explanation:

At the time of auditor visit in a company the financial statement represent that the company has done the fraud in this scenario, the auditor should analyze the material misstatement risk that is done for fraud

Therefore in the given case, the option D is correct as the auditor responsibility is that he or she should analyze the risk with respect to the false statements presented in the financial statement

6 0
3 years ago
At the beginning of the year, Monroe Company estimates annual overhead costs to be $2400000 and that 300000 machine hours will b
Neko [114]

Answer:

Allocated MOH= $252,000

Explanation:

Giving the following information:

Estimated overhead= 240,000

Estimated machine hours= 300,000

Actual machine hours for the year were 315000 hours.

First, we need to calculate the estimated overhead rate:

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

Estimated manufacturing overhead rate=  240,000/300,000= $0.8 per machine hour

Now, we can allocate overhead:

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

Allocated MOH= 0.8*315,000= $252,000

3 0
3 years ago
Identify the characteristics that have enabled Singapore to become one of the world’s most prosperous nations. Correct Answer(s)
ella [17]

Answer:

The answers are : Stable financial system; Strategic location; High literacy rate.

Explanation:

Singapore is a small island, highly populated country without much natural resources and little resources are paid to agricultural sector and energy sector thus lack of self-sufficiency in regard to water, food (due to limited land, lack of water supply and high labor cost). Currently, more than 40% of the country's water consumption are exported from Malaysia.

However, thanks to its strategic location lying in the center of the trade flow between the America, Europe, Middle East - Africa and Asia and the heart of Asia; its stable financial system which is one of the financial centers of Asia and the world due to its pretty open economy; its highly-educated citizens ( according to UNESCO Singapore literacy rate has been going up from nearly 83% in 1980 to more than 97% in 2018), the country is among one of the most prosperous countries in the world.

6 0
3 years ago
With an activity flexible budget, a budget variance is calculated a.based on a flexible budget based on various activity drivers
Vadim26 [7]

Answer:

C. 1. Identify the actual quantity of output. 2. Calculate the flexible budget for revenues based on budgeted selling price and actual quantity of output. 3. Calculate the flexible budget for costs based on budgeted variable cost per​ output, actual quantity of​ output, and actual fixed costs.

Explanation:

Any budget starts by determining our current output level.

To calculate the sales budget we must estimate our total revenue using our current output level and the estimated selling price for the next period. If we are certain that our output level will increase or decrease significantly over the next period, we can use the estimated output level instead of the current output level.

To calculate the costs budget we must estimate the variable costs per unit times the current output level (variable costs budget) and then we add the estimated fixed costs, which are not necessarily our current fixed costs.

Read more on Brainly.com - brainly.com/question/13853544#readmore

8 0
3 years ago
On October 15, a company received $15,000 cash as a down payment on a consulting contract. The amount was credited to Unearned C
VLD [36.1K]

Answer:

True

Explanation:

The company received $15000 and credited it to the unearned consulting Revenue accounts because it had not performed any services yet.

According to the accrual principle, the company can only report the amount earned in a period. If the company achieves the required  10% of consulting services by 31st march, it will record 10 percent of $15,000 as its income.

10 percent of $15000= 10/100 x $15000

                                     =$1500

3 0
3 years ago
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