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nikdorinn [45]
2 years ago
5

Financial statement auditors provide some degree of assurance that financial statements are free of material misstatement. Many

investors believe this degree of assurance should be higher in cases of intentional misstatement such as fraud than for unintentional misstatement, such as honest mistakes in management’s accounting. Many auditors would point out that fraud is much harder to detect than honest errors because management tries to conceal fraud, but not honest mistakes. According to auditing standards, what degree of assurance do financial-statement auditors provide that there are no material misstatements due to intentional misstatements (e.g., fraud) versus unintentional misstatements (e.g., honest computational mistakes)?
Business
1 answer:
sineoko [7]2 years ago
3 0

Answer:

First of all, an auditor must be skeptical about the information that he/she is gathering and analyzing. They should try to get as much audit evidence as they can in order to form an opinion. But an auditor can also reasonably assure that there are no material misstatements, either intentional or not intentional.

Most auditor procedures are intended to discover unintentional misstatements, but intentional misstatements are very hard to discover because more than one individual (or even a very large group) might have colluded in order to conceal them. The auditor gets his information from the controller, internal auditor, and other people within the organization, but what if they all colluded in order to conceal their bad actions.

E.g. an auditor should check for shipping receipts to be complete, accurate and in order, but he/she relies on information given by the same people that he/she is evaluating. The auditor can conclude that the shipping reports are complete, but he/she cannot state that they are true and valid because he/she wasn't there.

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At Bell’s Furniture, assemblers are paid according to the following differential piece rate scale: 1−20 dressers in a week, $7 e
Y_Kistochka [10]

Answer:

$658

Explanation:

Henderson assembled 47 dressers in the week.  

Her applicable pay rate is $14 per piece since she assembled over  30 dressers in one week.

her gross pay for the week

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4 0
3 years ago
Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.
Gennadij [26K]

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

a)

($250,000 − $200,000)/$200,000 = 0.25 or 25%

b)

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

c.

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

7 0
3 years ago
Individuals have to choose whether to save or invest since it is not recommended to do both
Kisachek [45]
False. Investing is sometimes considered a form of saving money people use other than savings accounts

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2 years ago
Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000
frutty [35]

Answer:

preferred stockholders received $15,000 during the first 3 years

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $25,000 in dividends during the third year.

Explanation:

preferred stock = 1,000 shares x $100 par value x 5% = $5,000

common stock = 10,000 shares at $10 par value

dividends declared and paid during the first 3 years:

year       dividends

1               $2,000

2              $6,000

3            $32,000

preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.

7 0
3 years ago
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