In order to preserve independence, Michael must "Remove himself from the engagement as he considers the offer." (Option B). It is to be noted that this is an internal control problem.
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What is Independence in this case?</h3>
The absence of situations that jeopardize the internal audit activity's capacity to carry out internal audit tasks objectively is called Independence.
Practically, independence is achieved by ensuring that the internal audit activity has no management control for any of the organization's non-audit functions that are subject to internal audit assessments, and by distancing the internal audit activity's management from the functional oversight of the organization's senior management.
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Full Question:
Michael was on the ABC Accounting Firm's audit team for the Rasmussen Corporation audit. Rasmussen's officers were so impressed with Michael that they offered him a job as Director of Internal Audit at Rasmussen. What should Michael do in order to preserve independence?
A) Tell his superiors as soon as he has decided whether or not to accept the offer.
B) Remove himself from the engagement as he considers the offer.
C) Pray for divine guidance.
D) If he decides to reject the offer, remove himself permanently from the engagement.
Answer:credit accounts receivable for $6,000
Explanation: this is because Eli co received a payment into their account from a customer which is a credit to their account.
It would have been a debit if Eli co paid out or made an expenditure from their account.
Answer: rose
Explanation: In the given case, Halpert hardware imports from asian countries,that is, they are on the buying side of the transaction. Therefore, if the value of dollar rises in relation to the currencies of countries from which halpert buys than they will be able to purchase more quantity with the same amount of dollars.
Answer:
D. The Fed decreases the discount rate relative to the federal funds rate.
Explanation:
The discount rate is the interest rate charged by the Central bank when commercial banks borrows funds from it.
When the discount rate is lowered, excess reserves increase and money supply increases.
The reserve requirement is the amount of deposits of commercial banks that should be kept as reserves. The higher the reserve requirement, the lower the money supply.
If banks hold more excess reserves, money supply falls.
An open market sale decreases money supply while an open market purchase increase money supply.
I hope my answer helps you.
Answer:
The indifference policy advocates that dividends are irrelevant.
Explanation:
The indifference Policy holds that that dividends do not add value to a company’s stock price.
According to this theory, investors do not need to concern themselves with a company's dividend policy since they have the option to sell a portion of their portfolio of equities if they want cash.
This school of thought believes that a company’s declaration and payment of dividends should have little to no impact on the stock price.
