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Which of the following statements is/are true? Statement I. Norvs and May are committed for a level needed for particular skills and translate the desired levels of competence into requisite knowledge and skills. Statement II. Norvs and May's lack of formal accounting training is compensated by the full responsibility provided to Red their general manager. Statement IlI. Norvs and May being the people allowed to sign company checks is a faulty control. O Statement IIl only O Statement I only O Statements I and II Statement I and III

Which of the following statements is/are true? Statement I. Norvs and May are committed for a level needed for particular skills and translate the desired levels of competence into requisite knowledge and skills. Statement II. Norvs and May's lack of formal accounting training is compensated by the full responsibility provided to Red their general manager. Statement IlI. Norvs and May being the people allowed to sign company checks is a faulty control. O Statement IIl only O Statement I only O Statements I and II Statement I and III

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ph.instructure.com C Home Chegg.com G Grammarly Viu C Home- Canva OStudent Far Easter... Netflix Dashboard 0.0 Duolingo - The wor... esis eclol Shelly is an internal audit manager of Air Clean and Safe Express, Inc. a publicly listed company, which provides general air conditioner cleaning and maintenance services to its industrial and residential customers. This will be the first time that the company will be audited. Thus, Shelly does not have any previous working file to review. Shelly recently conducted a preliminary interview with Mr. Norvs Gorgeous, who along with his sister, Ms. May Gorgeous owns the company. Interview with Auditee (Independent Situation) Shelly: That should about do it for now, until I can get in to do some preliminary audit investigation. But before I leave, l'd like to ask you a few more general questions. To start with, can you tell me what you feel is responsible for the company's recent success? Norvs: Well, Shelly, because our company uses the latest technology when it comes to cleaning air conditioning units compared to the traditional methods used by our competitors. Our customers can tell the difference. Further, May and I understand the business well, and we pride ourselves on doing good work. Shelly: Are you satished with the processing of trade receivables? Norvs: Yes, defınitely. Red, our general manager, is meticulous in his clerical operations, which is well systematized. He has excellent control over the trade receivables. In fact, it's been over a year and a half since the bank accepted a list of pledged receivables as security for a loan. From then on, we've had access to a continually renewable loan based on a list that's updated weekly. The loan is relatively small, and the contract allows the bank to access the company's checking account in the unlikely event that collection of the loan seems doubtful. Perhaps I should add that although May and I have no formal accounting training and we have given Red full responsibility for the accounting duties, May and I are the only people allowed to sign company checks. Which of the following statements is/are true? Statement I. Norvs and May are commilted for a level needed for particular skills and translate the desired levels of competence into requisite knowledge and skills. Statement II. Norvs and Mays lack of formal accounting training is compensated by the full responsibility provided to Red their general manager. checks is a faulty.control.
Transcribed Image Text:ph.instructure.com C Home Chegg.com G Grammarly Viu C Home- Canva OStudent Far Easter... Netflix Dashboard 0.0 Duolingo - The wor... esis eclol Shelly is an internal audit manager of Air Clean and Safe Express, Inc. a publicly listed company, which provides general air conditioner cleaning and maintenance services to its industrial and residential customers. This will be the first time that the company will be audited. Thus, Shelly does not have any previous working file to review. Shelly recently conducted a preliminary interview with Mr. Norvs Gorgeous, who along with his sister, Ms. May Gorgeous owns the company. Interview with Auditee (Independent Situation) Shelly: That should about do it for now, until I can get in to do some preliminary audit investigation. But before I leave, l'd like to ask you a few more general questions. To start with, can you tell me what you feel is responsible for the company's recent success? Norvs: Well, Shelly, because our company uses the latest technology when it comes to cleaning air conditioning units compared to the traditional methods used by our competitors. Our customers can tell the difference. Further, May and I understand the business well, and we pride ourselves on doing good work. Shelly: Are you satished with the processing of trade receivables? Norvs: Yes, defınitely. Red, our general manager, is meticulous in his clerical operations, which is well systematized. He has excellent control over the trade receivables. In fact, it's been over a year and a half since the bank accepted a list of pledged receivables as security for a loan. From then on, we've had access to a continually renewable loan based on a list that's updated weekly. The loan is relatively small, and the contract allows the bank to access the company's checking account in the unlikely event that collection of the loan seems doubtful. Perhaps I should add that although May and I have no formal accounting training and we have given Red full responsibility for the accounting duties, May and I are the only people allowed to sign company checks. Which of the following statements is/are true? Statement I. Norvs and May are commilted for a level needed for particular skills and translate the desired levels of competence into requisite knowledge and skills. Statement II. Norvs and Mays lack of formal accounting training is compensated by the full responsibility provided to Red their general manager. checks is a faulty.control.
traditional methods used by our competitors. Our customers can tell the difference. Further, May and I understand the business well, and we pride ourselves on doing good work. Shelly: Are you satisfied with the processing of trade receivables? Norvs: Yes, definitely. Red, our general manager, is meticulous in his clerical operations, which is well systematized. He has excellent control over the trade receivables. In fact, it's been over a year and a half since the bank accepted a list of pledged receivables as security for a loan. From then on, we've had access to a continually renewable loan based on a list that's updated weekly. The loan is relatively small, and the contract allows the bank to access the company's checking account in the unlikely event that collection of the loan seems doubtful. Perhaps I should add that although May and I have no formal accounting training and we have given Red full responsibility for the accounting duties, May and I are the only people allowed to sign company checks. Which of the following statements is/are true? Statement I. Norvs and May are committed for a level needed for particular skills and translate the desired levels of competence into requisite knowledge and skills. Statement II. Norvs and May's lack of formal accounting training is compensated by the full responsibility provided to Red their general manager. Statement IlI. Norvs and May being the people allowed to sign company checks is a faulty control. O Statement IIl only O Statement I only O Statements I and II Statement I and IlII
Transcribed Image Text:traditional methods used by our competitors. Our customers can tell the difference. Further, May and I understand the business well, and we pride ourselves on doing good work. Shelly: Are you satisfied with the processing of trade receivables? Norvs: Yes, definitely. Red, our general manager, is meticulous in his clerical operations, which is well systematized. He has excellent control over the trade receivables. In fact, it's been over a year and a half since the bank accepted a list of pledged receivables as security for a loan. From then on, we've had access to a continually renewable loan based on a list that's updated weekly. The loan is relatively small, and the contract allows the bank to access the company's checking account in the unlikely event that collection of the loan seems doubtful. Perhaps I should add that although May and I have no formal accounting training and we have given Red full responsibility for the accounting duties, May and I are the only people allowed to sign company checks. Which of the following statements is/are true? Statement I. Norvs and May are committed for a level needed for particular skills and translate the desired levels of competence into requisite knowledge and skills. Statement II. Norvs and May's lack of formal accounting training is compensated by the full responsibility provided to Red their general manager. Statement IlI. Norvs and May being the people allowed to sign company checks is a faulty control. O Statement IIl only O Statement I only O Statements I and II Statement I and IlII
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