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material covers receivables/revenues and payables/liabilities. Both areas come with some type of risk. For receivables/revenues, the biggest risks deal with overstatements. For payables/liabilities, the biggest risks deal with understatements.
Question 1: Find the management discussion and analysis in the Form 10-K of a publicly traded company that interests you. What risks does the company identify that might lead to the risk of overstating receivables/revenue or understating payables/liabilities? What specific tests might an auditor design based on those risks?
firm m and n compete for a market and decide independently how much to advertise. each can spend either 10 million or
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Soldan Corporation purchased a computer on December 31,2011, paying 30,000 down and a further payment due on December 31,2014.An interest rate of 10% is implicit in the purchase price. Soldan uses the Effective method and has December the 31 as y..
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The world's first large-scale nuclear power plant began operations in:
Ventura Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $3,000,000 and either has Even cash flows of $750,000 per year or The following expected annual cash flows: $375..
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