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marishachu [46]
2 years ago
6

An auditor has determined a $10 million materiality level for a client's balance sheet and a $3 million materiality level for th

e client's income statement. As a result, the auditor will consider items in the audit to be material if they individually or collectively could result in a misstatement of____________.
A. $6.5 million or more
B. $10 million or more
C. Unknown; impossible to determine from information given
D. $3 million or more
Business
2 answers:
wlad13 [49]2 years ago
7 0

Answer:

D. $3 million or more

Explanation:

The International Auditing Standards comments that <u> it is advised in auditing that when there are multiple materialities in an audit, using an average of the materialities will lead to an amount that will be too large for the lower materiality that has been set.</u>

Therefore in the case of this scenario, $6.5 cannot be used because it will be too large for the income statement amounts, hence the advised level is the lower materiality of $3 million.

Andreyy892 years ago
5 0

Answer:

D. $ 3 million or more

Explanation:

Since the minimum materiality amount on individual basis is $3 million for client's income statement.

Therefore, whether it is on individually or collectively identified that there is misstatement of at least $3 Million the auditor will consider it material.

They will notify appropriate authorities regarding the misstatement.

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LRQ Inc. issued bonds on April 18, 2006. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of
ankoles [38]

Answer:

$857

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.

According to given data

Face value of the bond is $1,000

Coupon payment = C = $1,000 x 5.5% = $55 annually = $27.5 semiannually

Number of periods = n = (April 18, 2036 - April 18, 2020) years x 2 = 16 x 2 period = 32 periods

Market Rate = 7% annually = 3.5% semiannually

Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = 27.5 x [ ( 1 - ( 1 + 3.5% )^-32 ) / 3.5% ] + [ $1,000 / ( 1 + 3.5% )^32 ]

Price of the Bond = $524.29 + $332.59 = $856.98 = $857

8 0
2 years ago
Which PCI security requirement relates to the physical protection of banks’ customer data?
iVinArrow [24]

The answer is <u>"D. Network vulnerability management".</u>


A network vulnerability assessment is the way toward auditing and dissecting a PC arrange for conceivable security vulnerabilities and escape clauses.  

It is utilized by system chairmen to assess the security design and safeguard of a system against possible vulnerabilities and dangers.  

A network vulnerability assessment helps network administrators or organize security staff to evaluate the security quality of a specific system.

4 0
3 years ago
Read 2 more answers
Collaborative and co-operative approach among all the stake holders is important. This is a feature of the _______________ agile
andrezito [222]

Collaborative and co-operative approach among all the stake holders is important. This is a feature of the Dynamic system development method of  agile methodology.

<h3>What is collaborative approach?</h3>

A collaborative  learning approach  can be described as one which involves the operation of the activities or  tasks together within a  group or organization so as to make sure  that everyone participates.

It should be noted that Collaborative and co-operative approach among all the stake holders is important because it help them to work , hand in hand for the progress of the organization.

Find out more on the Dynamic system at brainly.com/question/16797306

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5 0
1 year ago
A real estate professional leased a building for 10 years at an annual rent of $48,000. She will receive a commission of 7.5% fo
Alex Ar [27]

Her gross income from this commission over the life of the lease is $28,560.

Commission for the first five years

Commission=5×(48,000× .075)

Commission=5×3600

Commission=$18,000

Commission for the next three years

Commission=3×(48,000 ×.05)

Commission=3×2,400

Commission=$7,200

Commission for the final two years

Commission=2×(48,000 ×.035)

Commission=2×1,680

Commission=$3,360

Gross income commission:

Gross income commission=$18,000+$7,200+$3,360

Gross income commission=$28,560

Inconclusion her gross income from this commission over the life of the lease is $28,560.

Learn more about gross income commission here:brainly.com/question/24825618

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Henry's savings account has an APR of 3.65%
Kisachek [45]

Answer:

and Leah is saving her account APR of

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