The audit expectation gap is caused by unrealistic user expectations. The auditors provides reasonable gap examples that would not be included in unrealistic user expectations.
NASBA believes the expectancy gap relating to fraud and going problems in a financial statement audit may be caused by a few factors: lack of knowledge by way of the general public as to what an audit is and what auditors do; inconsistent audit execution in these regions by some auditors due to lack of expertise.
The expectation hole exists while auditors and the public keep distinct beliefs about the auditors' obligations and obligations and the messages conveyed by way of audit reports. apparently, there's an opening between what the public expects and what it virtually receives.
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Answer:
37 days
Explanation:
Given:
Credit sales during the year = $650,000
Account receivable = $70,000
Allowance for doubtful accounts = $4,000
Average collection days = ?
Computation of Debtor turn over:
Debtor turn over = Credit sales during the year / (Account receivable - Allowance for doubtful accounts)
Debtor turn over = $650,000 / ($70,000 - $4,000)
Debtor turn over = $650,000 / ($66,000)
Debtor turn over = 9.84848485
Computation of Average collection days:
Average collection days = 365 / Debtor turn over
Average collection days = 365 / 9.84848485
Average collection days = 37.06 = 37 days (Approx)
The yearly return of the investor is given to be 11.069%
<h3>How to find the YTM</h3>
In order to do this we have to make use of the Rate function in excel
This would be given as
=RATE(nper, PMT, PV, FV)
where Nper is 5 years
PMT is = $1,000*10% = $100
PV = $980
The future value Fv is given as $1,000
Hnece we would have to type in excel
RATE(5,100,-980,1000)
This would give us the value of the YTM as 10.5348%
Next would be to find the rate of return of this investor. This would be the rate that he actually earned.
We would also use the rate function
=RATE(nper, PMT, PV, FV
Npe = 4 years
PMT = $1,000*10% = $100
PV = $980
FV = $1,020 that is the amount for which the bond was sold
=RATE(4,100,-980,1020)
The solution would be = 11.0698%
Thus we can say that the return earned on investment is 11.0698%
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Answer:
The study carried out by Alberto Alesina and Lawrence Summers was about the role of Independence central banks, not about unemployment.
A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with <u>central banks that have high independence</u> had lower inflation rates than countries with <u>central banks that have low independence</u>.
William Phillips studied the correlation between unemployment and inflation rate. He concluded that <u>high inflation rate led to low unemployment</u>, and vice versa.
Answer:
D. is the analysis of how people (or firms) behave in strategic situations.
Explanation:
Game Theory it one of the greatest concepts of social situations among the competitive individuals or firms. It is mostly about the strategies. It includes the science of strategy, optimal decision making among the competitive individuals or firms or maybe countries. Game Theory is very useful for determining the best solutions or paths for price competition or product releases. The Game Theory has well known pioneers like John Nash, John von Neumann.
Game Theory has:
Focus: the focus is the game that is happening. On the game, there are social interactions and rational players.
Key: one player's payoff is contingent on the strategy implemented by the other player.
Players: the individual or the firm who or what is strategic decision-maker within the context of the game
Strategy: it is the complete plan of action a player will obtain from the set of circumstances that might arise within the game
Payoff: The payout a player receives from arriving at a particular outcome
Equilibrium: It is such an outcome or agreement that the point in a game where both players have made their decisions and an outcome is reached
As we see the game theory in general context is the behavioral analysis of the individuals and firms during the strategic situations.