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slega [8]
3 years ago
15

For an attributes sampling plan, the tolerable deviation rate is 4%, the computed upper deviation rate is 7%, the sample deviati

on rate is 3%, and the risk of assessing control risk toolow is 5%. Which of the following is true? A. The auditor must increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rateB. The auditor is likely to increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rateC. The auditor must increase control risk because the computed upper deviation rate is greaterthan the tolerable deviation rateD. The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate
Business
1 answer:
GuDViN [60]3 years ago
6 0

Answer: D. The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate

Explanation: For this scenario, the only true option is that, the auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate.

Attributed sampling states that items being sampled will either or won't possess certain attributes or quantities.

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What is industrialization​
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Answer: Industrialisation is the period of social and economic change that transforms a human group from an agrarian society into an industrial society. This involves an extensive re-organisation of an economy for the purpose of manufacturing

Explanation:

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2 years ago
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Which investment option has the highest risk ?
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Buying is the highest risk investment because the outcome is unknown and you have to take a gamble.
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1 year ago
Duffert Industries has total assets of $940,000 and total current liabilities (consisting only of accounts payable and accruals)
Studentka2010 [4]

Answer:

ROE = 13.04%

ROIC = 7.83%

Explanation:

Data provided in the question:

Total assets = $940,000

Total current liabilities = $130,000

Interest rate on its debt = 8%

Tax rate = 40%

The firm's basic earning power ratio = 14%

Debt-to capital rate = 40% = 0.40

Now,

Basis earning power = EBIT ÷ Total Assets

or

EBIT = Basis earning power × Total assets

= 14% × $940,000

= $131,600

Total Assets  = Total Debt + Total Equity + Total Current Liabilities

$940,000 = Total Debt + Total equity + $130,000

Debt + Equity  = $940,000 - $130,000

= $810,000

Debt to capital ratio = Debt ÷ [ Debt + Equity ]

0.40 = Debt ÷ $810,000

or

Total Debt = $324,000

Thus,

Debt + Equity  = $810,000

or

$324,000 + Equity = $810,000

or

Equity = $810,000 - $324,000

= $486,000

Interest = 8% of Debt

= 0.08 × $324,000

= $25,920

Taxes = 40% of [ EBIT - Interest ]

= 0.40 × ($131,600 - $25,920 )

= $42,272

Therefore,

ROE = [ EBIT - interest - Taxes ] ÷  Equity

= [$131,600 - $25,920 - $42,272 ] ÷ $486,000

= 0.1304

= 13.04%

ROIC = [ EBIT - interest - Taxes ] ÷ Total capital

= [$131,600 - $25,920 - $42,272 ] ÷ [Debt + Equity]

= [$131,600 - $25,920 - $42,272 ] ÷ $810,000

= 0.0783 = 7.83%

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2 years ago
Good cash management is an essential job of the financial manager. You own a small auto sales business called King Kars. You sto
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Answer:

Explanation:

The answer to the above question is given in the attached document.

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The lower the user's switching costs:
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Answer:

more intense the competitive pressures posed by substitute products.

Explanation:

The lower the user's switching costs: the more intense the competitive pressures posed by substitute products.

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