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jolli1 [7]
3 years ago
6

Which of the following is a true statement about an auditor’s responsibility regarding consideration of fraud in a financial sta

tement audit?
A. The auditor should consider the client’s internal control and plan and perform the audit to provide absolute assurance of detecting all material mis-statements.
B.The auditor should assess the risk that errors may cause the financial statements to contain any mis-statements and determine whether the necessary controls are prescribed and are being followed satisfactorily.
C.The auditor should consider the types of mis-statements that could occur and perform tests on 100% of the information subject to misstatement.
D.The auditor should assess the risks of material mis-statement due to fraud.
Business
1 answer:
Olegator [25]3 years ago
6 0

Answer:

D. The auditor should assess the risks of material mis-statement due to fraud.

Explanation:

At the time of auditor visit in a company the financial statement represent that the company has done the fraud in this scenario, the auditor should analyze the material misstatement risk that is done for fraud

Therefore in the given case, the option D is correct as the auditor responsibility is that he or she should analyze the risk with respect to the false statements presented in the financial statement

You might be interested in
Classify the following descriptions of constraints as bounds, limitations, requirements, proportional relationships, or balance
NeTakaya

Answer: Please refer to Explanation.

Explanation:

First the descriptions of Constraints shall.be described first to better understand the the questions.

Bounds are constraints where the value of a variable is not allowed to exceed a level.

Limitations are Constraints whereby there is only a limited number of the variable in question.

Requirements are constraints that refer to the minimum levels of a variable required.

Proportional Relationships are constraints that describe the relationship between Variables in terms of how they relate or are mixed and the like.

Balance Constraints refer to acheving a balance between Variables.

Classifying them therefore we have,

a. Each serving of chili should contain a quarter-pound of beef.

PROPORTIONAL RELATIONSHIPS

b. Customer demand for a cereal is not expected to exceed 800 boxes during the next month. BOUNDS.

c. The amount of cash available to invest in March is equal to the accounts receivable in February plus investment yields due on February 28. BALANCE CONSTRAINTS.

d. A can of premium nuts should have at least twice as many cashews as peanuts. PROPORTIONAL RELATIONSHIPS.

e. A warehouse has 3,500 units available to ship to customers. LIMITATIONS.

f. A call center needs at least 15 service representatives on Monday morning. REQUIREMENTS.

g. An ice cream manufacturer has 40 dozen fresh eggs at the start of the production shift. LIMITATIONS.

If you need any clarification do comment. Cheers.

7 0
3 years ago
Selene, a new recruit at Yellow Systems Inc., was encouraged to join the Hispanic Help Group (HHP) to discuss the challenges and
il63 [147K]

Answer:employee support group.

Explanation:employee support group are voluntary, employee-led associations where team members join together in light of common interests, backgrounds, or demographics.

A group of employees that join together in the workplace based on shared interests, backgrounds, or life experiences. Employee resource groups help provide support for both career and personal development.

5 0
3 years ago
"Ramon runs the marketing department at his company. His department gets a budget every year, and every year, he must spend the
miss Akunina [59]

Answer:

Property of additive inverse

Explanation:

Given: Ramon got $2.5 million for the annual marketing budget such that he must spend the budget such that  2,500,000-x=0  

To find: property of addition that help us to know what the value of x must be

Solution:

1 million is equal to 1,000,000

So,

2.5\,\,million=2.5(1,000,000)=2,500,000

According to property of additive inverse,

a+(-a)=0

Given equation is 2,500,000-x=0

This equation can be written as 2,500,000+(-x)=0

So,

x=2,500,000

8 0
3 years ago
Which of the following is true?
shepuryov [24]

Answer:

The correct answer is letter "A": Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

Explanation:

Overhead is an accounting term used for costs that must be paid, even though the company receives no profits. A company would not be able to survive without paying its overhead expenses but the costs are not connected directly to a product or service being generated. Examples of overhead costs are rent, utilities, office supplies, and maintenance.

<em> </em>

<em>Overhead costs are difficult to be traced because they can be assigned to more than one factor.</em>

5 0
2 years ago
Alabaster Incorporated wants to be levered at a debt to value ratio of .6 . The cost of debt is 9%. the tax rate is 35% and the
Aleks [24]

Answer:

14.925%

Explanation:

Cost of equity = Unlevered Cost of Equity + (Unlevered Cost of Equity - Cost of debt)*Debt to value ratio / (1-debt to value ratio)*(1-Tax rate)

Cost of equity = 12% + (12%-9%)*0.6/(1 - 0.6)*(1 - 35%)

Cost of equity = 0.12 + 0.018/0.4*0.65

Cost of equity = 0.12 + 0.02925

Cost of equity = 0.14925

Cost of equity = 14.925%

So, Alabaster's cost of equity will be 14.925%.

4 0
2 years ago
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