Answer:
True
Explanation:
In record keeping using the filling method, it is done in-order to keep track of all the important documents and information regarding to the company. <em>This record keeping system could employ the manual method or writing with hand or the electronic method of storing such information using the computer or other electronic device.</em>
Answer:
a. Briefly discuss what is meant by audit risk, inherent risk and control risk.
Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
Audit Risk = Inherent Risk x Control Risk x Detection Risk
Auditors will want their overall audit risk to be at an acceptable level. Inappropriate opinion will result in damages / costs
Inherent risk is the susceptibility of an assertion to a misstatement that could be material individually or when aggregated with other misstatements, assuming there were no related internal controls.
Control risk is the risk that a material misstatement, that could occur in an assertion and that could be material will not be prevented or detected and corrected on a timely basis by the entity's internal control.
b. What level of detection risk is implicit in this problem?
Detection risk is the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement
In this case the detection risk given is 0.41.
Answer:
The company's expected market price per share After the repurchase would $23.68
Explanation:
In order to calculate the company's expected market price per share After the repurchase we would have to calculate first the Price-to-earnings ratio ( P/E ratio ) as follows:
Price-to-earnings ratio ( P/E ratio )= Market price per share / Earnings per share
Earnings per share = Earnings/ number of shares outstanding =$ 5,700,000 / $790,000 = $ 7.21
Therefore, Price -to-earnings ratio = $ 21 / $ 7.21 = 2.91
If 90,000 shares are repurchased, Therefore Earnings per share =$ 5,700,000 / $700,000 = $ 8.14
Therefore, the company's expected market price per share After the repurchase=$ 8.14 x 2.91 = $23.68
Answer:
a capital gains tax (CGT) is a tax on the profit realized on the sale of a non inventory asset . The most common capital gains are realized from the sale of stocks,bonds,precious metals , real estate , and property
