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The auditor uses generalised audit software (GAS) to audit the accounts receivable master file of an audit client. Fields in the accounts receivable master file include credit limit, total balance, balance & 60 days, sales year to date, last payment amount and last payment date.
Problem 1: Which one of the following analyses is an exception report that can be produced from the information stored on the client's master file to assist the auditor in testing the existence assertion for accounts receivable?
Select one:
a. A report highlighting those receivables where the total balance exceeds the credit limit. b. A report highlighting those receivables where the last payment date is greater than 3 months before year end. c. A report highlighting those receivables where the total balance is greater than zero but the sales year to date is zero.d. A report highlighting those receivables where the balance is outstanding for greater than 60 days.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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