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ivolga24 [154]
3 years ago
8

In a financial statement audit performed following AICPA Professional Standards, how frequently must an auditor test operating e

ffectiveness of controls that appear to function as they have in past years and on which the auditor wishes to rely upon in the current year?
A. Monthly.
B. Each audit.
C. At least every second audit.
D. At least every third audit.
Business
1 answer:
Anni [7]3 years ago
3 0

Answer: D. At least every third audit

Explanation: According to the AICPA Professional Standards of auditing. Testing the operating effectiveness of controls that appear to function as they have in past years and on which the auditor wishes to rely upon in the current year must be carried out at least every 3rd Audit.

This is done if the auditor plans to use audit evidence from a prior audit about the operating

effectiveness of specific controls. The auditor shall establish the continuing relevance of that

evidence by obtaining audit evidence about whether changes in those controls have

occurred subsequent to the previous audit.

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For a binomial experiment with r successes out of n trials, what value do we use as a point estimate for the probability of succ
trapecia [35]

Answer: \dfrac{r}{n}

Explanation:

If r is the number of successes out of n trials , then the sample proportion of success = \hat{p}=\dfrac{r}{n}

For binomial experiment , if the population probability of success p on a single trial is not given , then the best point estimate for probability of success p on a single trial is the sample proportion of successes.

i.e. a point estimate for the probability of success p on a single trial :

p=\hat{p}=\dfrac{r}{n}

Hence, a point estimate for the probability of success p on a single trial = \dfrac{r}{n}

4 0
3 years ago
The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 p
kozerog [31]

Answer:

$326,400 is the variable cost quantity factor while $56,000 is the unit cost factor

Explanation:

The variable cost quantity factor is a measure of the difference between the planned and actual units  multiplied by planned variable cost.  

That is Variable Cost quantity factor = (planned units  - actual units sold) x        planned variable cost

                                                            = (14000-2400) - 14000) x $136

                                                            = (11600 - 14000) x $136

                                                            =  -$326,400

Unit Cost factor = $(140 - 136) x 14000 units

                          =$56,000

3 0
3 years ago
Read 2 more answers
Crane Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budge
34kurt

Answer:

$22,050

Explanation:

The computation of the total budgeted variable selling and administrative expenses for October is shown below:

Sales Commission (9,000 × $0.60) $5,400  

Shipping (9,000 × $1.2) $10,800

Advertising (9,000 × 0.3) $2,700

Other (9,000 × .35) $3,150

Budgeted Variable Selling and admin expenses $22,050

We simply added all the variable selling and admin expenses so that the total could arrive

3 0
3 years ago
In large high rise condominiums, each unit is owned by individual owners. The elevators, parking garage, and swimming pool are c
Arlecino [84]

Answer:

B. common area elements

Explanation:

Common Area elements are those spaces in real estate that are meant for general use. They are not owned exclusively by one person but are rather shared by the people who live within the area. The people pay some maintenance fee to keep the common area elements in good conditions.

In condominiums, the elevators, parking garage, and swimming pools are collectively shared by residents, and they all pay for the maintenance of these properties. Therefore, they can be said to be Common Area elements. Common Area elements can be found in residential, business and Government-owned properties.

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3 years ago
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Assume you have a car worth $3,200 and investments worth another $7,500. of you owe $1,300 on credit cards and that is your only
coldgirl [10]
<span>Net worth is calculated by adding all of your assets together and then subtracting your total amount of debt. In this case, your net worth are the items you own and how much value they are worth. The car ($3200) and the investments ($7500) added together make a total of $10700. Your total debts are $1300 from your credit cards. Subtracting debts from assets ($10700 - $1300) you have a total net worth of $9400.</span>
7 0
3 years ago
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