Precondition for an audit

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Reference no: EM131247567

1. The Rivers Co. had four separate operating segments with total sales to outsiders of $526,400 and total intersegment revenue of $123,200. What amount of revenues must be generated from one customer before that party must be identified as a major customer?

$52,640

$64,960

$57,680

$78,960

2. Which of the following is a precondition for an audit?

a. management has used an acceptable financial reporting framework

b management has used GAAP for its financial reporting framework

c. management cannot have any responsibility for designing any internal controls

d. all of the above

Reference no: EM131247567

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