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.
Answer:
$46.82
Explanation:
Present value is the sum of discounted cash flows
present value can be calculated using a financial calculator
Cash flow in year 1 = $3.06
Cash flow in year 2 = $3.42
Cash flow in year 3 = $3.78 + $56 = $59.78
I = 13%
Present value = $46.82
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Based on legalities, Thomas has the right to refuse payment of the 8% commission to RE/MAX because he already stated his refusal during the meeting with Darragh nor did he sign the document that Darragh gave him during the meeting. Thus, there was no meeting of minds.
Darragh is entitled to be given a reimbursement for his expenses incurred in securing documents that he willingly gave to Thomas. He can also ask Thomas for a recompensation for his labors but it will be according to Thomas's discretion.
Darragh can't claim that he worked on implied consent from Thomas because Thomas specifically stated his refusal in paying for the 8% commission during their meeting but Darragh did not stop to renegotiate the commission nor convince Thomas to accept the contract.
Your KEY word is private. The companies may be limited liability, but because they are private, that means that they are privately owned. Privately owned companies are not traded on stock exchange. Often a corporation will issue stock in what’s called an Initial Public Offering. This is to raise capital and allows anyone from the public sector have access to ownership of the company through buying shares of stock. If the company were privately held, it would be owned by the employees or a few investors or a combination
Answer:
c. cease production immediately, because it is incurring a loss.
Explanation:
When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.
However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.
Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.
Once price is less than average total cost or average variable cost it is better to stop production.
As they are incurring an economic loss
