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Questions
1. Many CPA firms are taking a business risk approach to audits. Define what is meant by business risk. Provide an example of a business risk that could result in a risk of material misstatement of financial statements. 2. You have discussed with the president of Vista Corporation several material weaknesses in internal control that have come to your attention during your audit. At the conclusion of this discussion, the president states that he will personally take steps to remedy these problems and that there is no reason for you to bring these matters to the attention of the board of directors. He explains that he believes the board should deal with major policy decisions and not be burdened with day-to-day management problems. How would you respond to this suggestion? Explain fully.
The men's and ladies' bowling leagues gave Craig's a deposit of $3,400 for the upcoming fall season. For each of the following transactions, complete the tabulation, indicating the amount and net effect (+ for increase and - for decrease) of each tra..
initially purchase ppe for 140.useful life is 3 years and salvage value is 50. it is depreciated on a straight-line
sm press company manufactures books. the company is trying to decide whether to print the individual pages in-house the
Sara owns a sole proprietorship and Phil is the sole shareholder of a C (regular) corporation. Each business sustained a $9,000 operating loss and a $2,000 capital loss for the year. Evaluate how these losses will affect the taxable income of the ..
Nontaxable stock dividends result in: a. A higher cost per share for all shares than before the stock dividend. b. A lower cost per share for all shares than before the stock dividend.
at the beginning of 2014 ovila company estimated the following costs to produce one unit of product 8 pounds of direct
northwest fur co. started 2013 with 103000 of merchandise inventory on hand. during 2013 600000 in merchandise was
Prepare the general journal entries for Korman Company for:(a) the 2010 adjusting entry.(b) the sale of the Thomas Corp. stock.(c) the purchase of the Werth Stores' stock.(d) the 2011 adjusting entry
mozena corporation has collected the following information after its first year of sales. sales were 1800000 on 100000
1.state of economynbspis nbspboom probability of state of econmy is.15 nbsprate of return if state occurrs for stock
on april 1 bachler corporation had 37000 of raw materials on hand. during the month the company purchased an additional
Monthly demand for an inventory item currently averages 160 units. The annual carrying cost is $10 per unit. Ordering cost is $60 per order. This information applies to all of the questions on this page.
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