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PtichkaEL [24]
3 years ago
5

While conducting an audit of a new nonissuer client, an auditor discovers that accounting policies applied in relation to the fi

nancial statement opening balances are inconsistent with accounting policies applied during the period under audit. In this scenario, what should the auditor do?
A.Obtain sufficient appropriate evidence about whether changes in the accounting policies have been appropriately accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.
B.Refrain from placing any reliance on information obtained from the review of the predecessor auditor's audit documentation of the prior period.
C.Request that management inform the predecessor auditor that the prior-period audited financial statements require revision.
D.Express a qualified or adverse opinion.
Business
1 answer:
Marat540 [252]3 years ago
3 0

Answer:

A) Obtain sufficient appropriate evidence about whether changes in the accounting policies have been appropriately accounted for and adequately presented and disclosed in accordance with the applicable financial reporting framework.

Explanation:

When such things happen, the auditor must search more information regarding the accounting policies and must evaluate if the company's accountants adopted accounting policies that are legal and adjust to applicable financial reporting (e.g. GAAP in the US). The auditor must also try to determine the effects of the applied policies and if all proper disclosures have been included or not. The auditor should also try to determine why the company's accounting department did that and how do they justify it.

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Which of the following are true about productive efficiency? I. All available resources are employed in production. II. Workers
dalvyx [7]

Answer:

III. Points on the PPF curve are the only ones that achieve "productive efficiency"

Explanation:

What is true about productive efficiency is that Points on the PPF curve are the only ones that achieve "productive efficiency".

Productive efficiency is an economic term that is concerned with producing goods and services with the optimal combination of inputs to produce maximum output for the minimum cost.

For it to be said that an economy is productively efficient means the economy must be producing on its production possibility frontier

Hence productive efficiency happens when production is reportedly occurring along a production possibility frontier (PPF).

7 0
3 years ago
Floyd Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividends are expected to grow at 6
Elanso [62]

Answer:

a. 6.7%

b. 12.0%

Explanation:

a. DDM

Dividende Discount Method is used to calculate the price of the stock using Dividend, rate of return and growth rate.

Return on equity = [ Dividend x ( 1 + growth rate ) / Price of stock ] + Growth Rate

Return on equity = [ $0.5 x ( 1 + 6% ) / $76 ] + 6%

Return on equity = [ $0.5 x ( 1.06 ) / $76 ] + 0.06

Return on equity = 6.7%

b. SML

Security Market line method uses calculates the cost of capital using following formula

Re  =  R f  +  β   (  Rm  −  R f  )

Rf = Risk free rate

β = stock beta

Rm = Market rate

Re =Expected rate

Re = 5.9% + 1.20 ( 11% - 5.9% )

Re = 12.02%

5 0
3 years ago
Question 4 of 8 > For each of the scenarios, please decide whether there will be an increase or decrease in short-run aggrega
sdas [7]

Increased use of current inputs in the production process is the short-term response of aggregate supply to rising demand (and prices).

A company can't, for the short term, build a new factory or introduce new technology to boost production efficiency because the level of capital is fixed.

What is short run and long run aggregate supply?

The intersection of the economy's aggregate demand and long-run aggregate supply curves determines its equilibrium real GDP and price level in the long run. The short-run aggregate supply curve is an upward-sloping curve that shows the quantity of total output that will be produced at each price level in the short run.

To learn more about aggregate supply here

brainly.com/question/29349235

#SPJ4

7 0
1 year ago
Cala Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The nego
otez555 [7]
The company plays $33,500 to tear down the old buildingand $47,000 to landscapethe lot. It also pays a total of $1,540,000 in construction costs-this amount consists of $1,452,200 for the new building and $87,800 for lighting andpaving a parking areanext to the building. Prepare a single journal entry to record thesecosts incurred by Cala, all of which are paid in cash.Cost of LandPurchase price for land$280,000Purchase price for old building$110,000Demolition costs for an old building $33,500Fill and level the land$47,000Total cost of land$470,500Cost of New building and land improvementsCost of new building$1,452,200Cost of land improvements<span>$87,800</span>
3 0
3 years ago
of the following will help you avoid the legal perils of electronic communications? Check all that apply. Make messages specific
maksim [4K]

Answer:

1. Make messages specific.

2. Abide by all copyright laws

3. Keep conversations casual but professional.

Explanation:

In the business environment, care should be taken when exchanging electronic communication. This is because, electronic messages can be intercepted and unfavorable findings, used to launch legal proceedings.  Some things to do to avoid the legal perils of electronic communication, include;

1. Be specific: Electronic communications do not have to beat around the bush. Rather, they should be specific and straight to the point. Ideas must be communicated as accurately as possible. Employers must also be specific about their policies on electronic communication.

2. Abide by all copyright laws: When using electronic or printed materials from other sources, credit must be given to the owners of such materials to avoid lawsuits or accusations of piracy.

3. Keep conversations casual but professional: While, thoughts have to be communicated freely, they should however, not be overly casual. Professionalism must be maintained.

Care should be taken to avoid deleting messages unnecessarily as they may be requested for retrieval to validate accusations. Also, a rule of thumb is not to write messages when we can just talk to the person.

5 0
3 years ago
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