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Jlenok [28]
3 years ago
7

What factors might have caused the auditor to inappropriately accept the assertions by management that the vendor allowances sho

uld be reflected in the financial statements?
Business
1 answer:
Korvikt [17]3 years ago
6 0
Auditors may be inclined to accept client representations because of a natural bias to want <span>to trust the client.
Before doing the auditing process, auditor usually receive a small briefing from the management team on the financial system that they use in recording their transactions. </span>If these allowances had been used in the past the auditor<span> may have been inclined to accept them as regular business practices</span>
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The real risk-free rate is 2.05%. Inflation is expected to be 3.05% this year, 4.75% next year, and 2.3% thereafter. The maturit
tester [92]

Answer:

The yield on a 7-year Treasury note is 5.11%.

Explanation:

Given

Real risk-free rate = r* = 2.05%. Inflation Rate = 3.05% this year, 4.75% next year, and 2.3% thereafter.

Time = 7 years

Maturity risk premium, MRP = 0.05(t- 1)%

First, we'll calculate the average inflation rate for the next 7 years.

This is given by:

((3.05% * 1) + (4.75% * 1) + (2.3% * (7-2)))/7

This is so, because the Inflation Rate is 3.05% this year (1 year), 4.75% next year (1 year), and 2.3% thereafter (7-2=5 years).

So, we have

(3.05% + 4.75% + 11.5%)/7

= 19.3%/7

= 2.757142857142857%

= 2.76%

So, IP7 = 2.76%

The yield on a 7-year Treasury note is calculated by

r* + IP7 + MRP

Yield = 2.05% + 2.76% + 0.05(t- 1)% where t = 7

Yield = 4.81% + 0.05(7-1)%

Yield = 4.81% + 0.05*6%

Yield = 4.81% + 0.3%

Yield = 5.11%

5 0
4 years ago
Supply chain managers outsource logistics to meet three​ goals: A. drive down inventory​ investment, lower delivery​ costs, and
Natasha2012 [34]

Answer:

A. drive down inventory​ investment, lower delivery​ costs, and improve delivery reliability and speed.

Explanation:

Inventory investment is allocating resources to raw materials, finished goods, and work in progress. Supply managers will outsource logistics services to save costs and improve efficiency in inventory management.

Specialized logistics companies deliver raw material and distribute finished goods at a fast speed and lower cost. Outsourcing will present the supplies manager as reliable in the books of their customers.

3 0
3 years ago
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calcu
Allushta [10]

Answer:

$53

Explanation:

Tolar Corporation

Price per calculator × 400 calculators > $10,000 + $11,200

Price per calculator × 400 calculators > $

$21,200

Price per calculator = $21,200 ÷ 400 calculators

= $53 per calculator

8 0
4 years ago
Write the relationship between audit and finance?
OLga [1]

Answer:

Financial management makes decisions about managing finances: managing cash, using credit, paying bills, minimizing tax bills and borrowing costs, ensuring money for the firm’s current plan, and reporting the status of the finances. They are one part of the broader management team, and have a direct role in planning and can actually contribute profits or losses to the bottom line via their decisions.

Auditors are more like investigators or quality control: they don’t make business decisions, they make sure the financials being reported actually match the reality of what the company is doing. They usually are independent of management: they report to the board of the company, not the management they are auditing; they often have the mandate to look at anything they choose; they sometimes have a forensics function: collecting and analyzing evidence of serious wrongdoing if things are really out of control.

1.audit refers to the systematic process of examining verify of data related to the financial activities of an organization.

2.auditor is a professional inside audit

Financial management

1.Financial management refers to managing the fund of an organization.

2.finance manager is a professional inside finance management.

6 0
3 years ago
The model of monopolistic competition characterizes the market for plumbing services in a city. This market is initially in long
Sophie [7]

Answer:

There will zero economic profits in the long run.

Explanation:

Monopolistic competition is a market structure where there is a large number of firms producing differentiated products. There is very low or no restriction on the entry and exit of firms in the market.  

The market for plumbing services in a city is a monopolistic competition. An increase in the market demand will cause the price to increase. This will cause an increase in the profits of the existing firms.  

In the long run, new firms will enter the market, increasing the market supply. This will cause the price level to decrease till all the firms are having zero economic profits.

3 0
4 years ago
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