[source]'MT: bank recons are a internal control, checking to see if figures match. Approval by different level of authorities help to prevent unathorized
transactions - so its a control too. segregate duties also ensures that. [source]'MT: odd qns. But it should be net profit "npat" flows to retained earnings, and also starts the cashflow statement (so all linked and not independent). Assets are in balance sheet, net income is in income statement. npat goes to retained
earnings, not gross profit. Q13. Which is not one of the four perspectives of the balanced scorecard?
Q14. What would be deducted from the balance per books when doing a bank reconciliation?
Q15. What situation could be the results of the three retails store employees sharing the same cash register?
Q16. A firm has $1,000 in debt and $3,000 in assets. What is the firm's debt-to-equity ratio?
Q17. An external auditor is required to be independent when performing
source 'MT: tough qns, ambiguous options. Attest = validate audit data gathered. Consulting is less regulatory/ restrictive, = how to increase pie sales, versus audit/attestation = why you reported more pies in your fridge than we observed. Tax is grey, usually has to be internal audt committee approved or fees disclosed etc. but there are exceptions.' Q18. Proper segregation of functional responsibilities calls for separation of
source Q19. What does the degree of operating leverage represent?
[source]'High operating leverage means a firm has a relatively fixed, and usually high cost base. So additional sales would incrementally drive more profits because those sales do not need to incur more costs to generate (like a factory, versus factory workers)' Q20. Which characteristic would concern an auditor about the risk of material misstatements arising from fraudulent financial reporting?
[source]'MT: regular bank recons and loyal employees are +ve. Nothing wrong with assets sold at lost before fully depreciated, like you can sell a plane at a loss even before it has been "fully used". Q21. An employee who makes a sale, ships the goods, and bills the customer violates which control activity?
source Q22. What trait distinguishes auditors from accountants?
[source]'MT: auditors are focused on gathering and interpreting audit evidence in specific sectors. Both auditors and accountants would be familiar to the principles that the client operates in' Q23. What is the purpose of an operational audit?
Q24. Which statement is false?
source 'MT: BSC is on improving efficiency - deliver goals and how to measure that quantitatively or qualitatively. Nothing to do with how to compensate' Q25. Which choice is not a component of internal control?
Q26. What is the difference between the cost of an asset and the accumulated depreciation for that asset?
Q27. A company budgeted 1,200 washers, but only 1,000 are produced. It costs $10 to produce a widget. What is the materials variance?
Q28. Who does an audit committee report to?
Q29. A business purchased office equipment by issuing a one-year note payable. The entire amount of the note is due at the end of one year. How do you record this transaction?
[source]'MT answer - its Debit equipment (asset), Credit notes payable (liability). To +/- assets, need to dr/cr, inverse is true for liabilities. Long-form journal entry is: Borrow cash - Dr cash, Cr notes payable, then for equipment purchase - Dr equipment, Cr cash' Q30. Which section of a financial annual report describes the corporation's accounting methods?
Q31. What does "independence" mean in auditing?
source Q32. What would cause a bank to increase a depositor's account?
[source]'MT: depositor account os a liability to the bank - bank owes the money to depositor. bank collects a notes receivable from client means reducing client's cash/ deposits. Similar if NSF means the cheque owner does not have enough funds to transfer funds into the client's deposits, so theres no change in deposits.' What do you call a situation where more than one person collaborates to?Collaborative Overload. Collaboration and teams | Collaborative Overload.
What do you call a situation where more than one person collaborates to circumvent existing internal controls collusion?Answer: Collusion. Note: This Question is unanswered, help us to find answer for this one. Is This Question Helpful?
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