Answer:
Explanation:
1. Significant financial statement accounts are materially affected, either directly through entries in the general ledger, or indirectly through the creation of rights or obligations that may or may not be recorded in the general ledger by major class of transaction.
2. The auditors should design procedures to provide a high level of assurance that the controls related to each relevant assertion are operating effective.
3. A significant deficiency is a control deficiency that is less severe than a material weakness yet important enough to merit attentions by those responsible for oversight of the company's financial reporting.
4. To express the internal control opinion, the auditors should obtain sufficient evidence on the effectiveness of controls at the as of date.
5. Ineffective audit committee oversight of management is regarded as at least a significant deficiency
Answer:
The correct answer is (B)
Explanation:
A conflict is a clash of interest. The idea of conflict might be close to home, racial, class, standing, political and universal. Samantha is encountering a conflict of interest where she has to choose whether to watch her son's football match or go to work. Conflicts usually can lead to misunderstandings between two parties and they must be resolved by communication.
Answer:
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Explanation:
Given;
Insurance policy was purchased on July 10 to run for 3 years.
Cost of policy = $72,000
Start date is August 1st. As at 31 December, the policy should have been amortized for 5 months (August to December)
Monthly depreciation = $72,000/(3 × 12)
= $2,000
Total amortization between August and December = 5 × $2,000
= $10,000
Journal entries
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Answer:
a). Bryan does not cope very well in ambiguous situations.
b). Bryan is quite sociable and can "think on his feet."
Explanation:
In the context it is given that Mara is choosing Bryan, one of her team member for the assignment in China office to train a group of employees in Beijing office. As a procedure Bryan will have to undergo a 3 week diversity training program which will help him to learn about the new environment.
a). One of the major factor that can reduce the likelihood of Bryan's selection if Bryan does not cope very well in the ambiguous situation. Bryan should be able to handle the ambiguous situation that may arise in he training period.
b). The factor that would increase the likelihood of Bryan to get selected is that Bryan is very sociable person and get easily get mix with people around. He is also able to think and react to situation immediately.
Answer:
The $5,400 is the amount should Bad Brads BBQ record the equipment.
Explanation:
According to the Generally Accepted Accounting Principles (GAAP), the amount of asset is recorded at cost or fair market value which ever is lower.
The motive behind this is to present the financial statement in true and fair value rather than mislead values.
Since in the given question, the equipment purchase cost is $5,000 and shipping charges is $400.
So,
The total cost is = Purchase cost + shipping charges
= $5,000 + $400
= $5,400
And, the fair market value is $7,000.
By using the above explanation, the $5400 is the lesser amount than the $7,000.
Hence, the $5,400 is the amount should Bad Brads BBQ record the equipment.
