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Question: An auditor is considering using a client's internal audit function to assist with testing for a particular area of the financial statement audit. Which of the following statements regarding this decision is not correct?
a. The auditor is more likely to utilize an internal audit function that reports directly to the audit committee
b. The auditor must plan to review the internal auditor's work and to re-perform some of that work before placing reliance on it
c. The auditor is more likely to utilize an internal audit function for areas that require high levels of subjectivity
d. The auditor should provide instructions to the internal auditors to guide their work while assisting with the audit
Stephanie wanted to save for her daughter's education. Tuition costs $10,000 per year in today's dollars. Her daughter was born today and will go to school.
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What was the strategic rationale for acquiring Cadbury?
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Debt Management Ratios Zoe's Dog Toys, Inc. reported a debt to equity ratio of 1.70 times at the end of 2008. If the firm's total assets at year-end were $49.9 million, how much of their assets are financed with equity?
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