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3 years ago

Suppose that consumption depends on the interest rate. how if at all does this alter the conclusions

1 answer:

3 0

Here is the answer. Suppose that consumption depends on the interest rate, how this alters the conclusions is that at any given level of the interest rate, national saving falls by the change in government purchases. You should also consider what happens when government purchases increase. Hope this helps.

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Professional auditing standards identify the principal "management assertions" that underlie a set of financial statements. The

faust18 [17]

Answer:

Before we treat the question, lets examine the key words:

> Management assertions: this refers to claims made by members of management of a company with respect to certain aspects of a business. The concept is primarily used in regard to the audit of a company's financial statements, where the auditors rely upon a variety of assertions regarding the business. The auditors are required to test the validity of these assertions by conducting a number of audit tests.

> Occurrence Assertion: This belongs to one of the categories of claims usually made by management. Occurrence Assertion arises in two instances:

i. Business transactions, mostly in regard to the income statement. Here occurrence claims refer to the assertion that the business transactions recorded in the income statement actually took place.

ii. Occurrence assertion also arises when the authenticity of the information related to the presentation of information within the financial statements is being considered.

Section 31 of the Statements on Auditing Standards requires that these assertions be investigated, supported or verified using procedures and or other reasonable methods outside of the system providing these assertions.

The question indicates that at least three steps in this direction was taken:

ZZZZ Best's auditors obtained third-party confirmations;
they reviewed available documentation and performed analytical procedures to evaluate the legitimacy or the integrity of the revenues recorded on the contract
they visited selected restoration sites (most likely for direct observation)

The questions suggests that the evidence availed by these procedures are not without limitations. In order words, irrespective of the rigor involved with same, it is not fail proof.

Here are reasons why.

Explanation:

1. Absolute Proof may not be possible.

Fallacious and fraudulent assertions may be designed such that other evidencing documentation support the fraudulent position asserted

2. Third-Party confirmations are not fail proof. With sufficient motivation, they may be designed or influenced to support a fraudulent assertion. In a similar case-study, the restoration sites visited was fraudulently selected and stage-managed to give the appearance of an ongoing restoration work.

3. Some assertions are not material: Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. If the assertion is of no significance then the judgement arrived at by the audit process will carry same weight.

4. Limitations of Time and Cost of verifying assertions:

This must be considered as accounts must be prepared within a certain time scale and the auditor may have to do with less than perfection and ideal evidence may be too expensive to obtain. In the example referred to above, It was later discovered that the restoration site was bogus. The informant had contacted the audit firm in April 1987 and asked for $25,000

in exchange for information proving that one of the firm’s clients was engaging in a massive fraud.

In summary, when presented with assertions, it is not sufficient to obtain third party confirmations. Third party confimations ought to be investigated.

Cheers!

4 0

3 years ago

Problem 4-53 (Algo) Special Order (LO 4-1, 2) Unter Components manufactures low-cost navigation systems for installation in ride

Eduardwww [97]

Answer:

Unter Components

If Unter accepts the offer, the direct labor-hours required to produce the additional systems are:

= 8,640 hours.

Explanation:

a) Data and Calculations:

Product Lines Star100 Star150

Direct materials $ 55 $ 65

Direct labor 24 30

Variable overhead 10 15

Fixed overhead 80 110

Total cost per unit $ 169 $ 220

Price $ 280 $ 380

Units sold 4,000 2,000

Average wage rate is $15 per hour

Product Lines Star100 Star150

Hours to make one unit 1.6 hours 2 hours ($24/15 and $30/$15)

Special offer by a nationwide car-sharing service:

Systems to buy 2,400 2,400

Offered price $190 $240

Hours to make systems 3,840 4,800

(2,400 *1.6 hours and 2,400 *2 hours)

Total hours required to make both systems = 8,640 hours (3,840 + 4,800)

5 0

2 years ago

The purchase of overseas production and marketing facilities is an example of

lbvjy [14]

it is either foreign commerce or outsourcing but i am leaning more towards foreign commerce

hope this helps

3 0

3 years ago

One approach to understanding corruption perceptions is to compare information across a variety of countries. Your company has h

Ne4ueva [31]

Explanation:

A major problem in investing in the countries of South America are the problems arising from corruption, political instability and bureaucratization.

There are also many positive points that make large companies operate in such countries, such as Brazil, for example, which is a large country with enormous potential for consumption and also local and government incentives for setting international companies in the country.

However, it is essential that companies operate in these countries having knowledge of the real local situation in terms of the main problems occurring in the country, such as corruption, which can lead to significant problems for the company's business.

It is important, therefore, that there is an accurate internal control over the businesses and the corruption-related indexes and an active and regular monitoring of data essential to the business.

It is also important to have policies and an internal culture aimed at maintaining ethical values, so that the company is supported by positive and ethical values that will lead to a good positioning in the market.

4 0

3 years ago

Which of the following scenarios illustrates cost-push inflation?(1 point)

Crazy boy [7]

Answer:

1. Inflation is best described as _____.

- an upward, general trend of prices in the economy

2. Which of the following scenarios illustrates cost-push inflation?

- An increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.

3. The Consumer Price Index in 2018 was 251. In 2019, the CPI rose to 257. Calculate the inflation rate from 2018 to 2019. Round your answer to the nearest tenth of a percent.

- 2.4%

4. The Consumer Price Index of any given year provides _____.

- the relative price of a basket of consumer goods as compared to base year prices

5. The rate of inflation in a hypothetical economy is projected to be 1.5% in the coming quarter. Given this information, the Federal Reserve is likely to _____.

- make efforts to raise the inflation rate because 1.5% is below the desired rate of inflation

Explanation:

Mark me braliest

These are 100% correct

3 0

2 years ago