State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

Question

Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $60 per unit. Flare management desires a 15% profit margin on sales. Their current full cost for the product is $52 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? HELP

Answer 1

Question

Chapter 12, Problem 22DQP

a.

To determine

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

b.

To determine

List the transaction related audit objective which applies on the each internal control.

c.

To determine

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

d.

To determine

Identify the specific misstatement that could result from the absence of the control for each given control.

e.

To determine

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

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Flare Enterprises sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $60 per unit. Flare management desires a 15% profit margin on sales. Their current full cost for the product is $52 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? HELP

Wendell Transport purchased a new delivery van for $75,000. The van is expected to have a salvage value of $9,000 after 6 years or 120,000 kilometers of use. During the first and second years of operation, Wendell Transport drove the van 30,000 kilometers and 15,000 kilometers, respectively. What is the depreciation expense for the second year using the units-of-activity method? A. $8,250 B. $6,000 C. $7,500 D. $9,000 help

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Answer 2

Question

Chapter 12, Problem 22DQP

a.

To determine

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

b.

To determine

List the transaction related audit objective which applies on the each internal control.

c.

To determine

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

d.

To determine

Identify the specific misstatement that could result from the absence of the control for each given control.

e.

To determine

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

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Answer 3

Question

Chapter 12, Problem 22DQP

a.

To determine

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

b.

To determine

List the transaction related audit objective which applies on the each internal control.

c.

To determine

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

d.

To determine

Identify the specific misstatement that could result from the absence of the control for each given control.

e.

To determine

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

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Answer 4

Question

Chapter 12, Problem 22DQP

a.

To determine

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

b.

To determine

List the transaction related audit objective which applies on the each internal control.

c.

To determine

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

d.

To determine

Identify the specific misstatement that could result from the absence of the control for each given control.

e.

To determine

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

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Answer 5

Chapter 12, Problem 22DQP

a.

To determine

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

b.

To determine

List the transaction related audit objective which applies on the each internal control.

c.

To determine

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

d.

To determine

Identify the specific misstatement that could result from the absence of the control for each given control.

e.

To determine

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

Answer 6

Chapter 12, Problem 22DQP

a.

To determine

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

Answer 7

Chapter 12, Problem 22DQP

a.

To determine

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

Answer 8

b.

To determine

List the transaction related audit objective which applies on the each internal control.

Answer 9

b.

To determine

List the transaction related audit objective which applies on the each internal control.

Answer 10

c.

To determine

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

Answer 11

c.

To determine

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

Answer 12

d.

To determine

Identify the specific misstatement that could result from the absence of the control for each given control.

Answer 13

d.

To determine

Identify the specific misstatement that could result from the absence of the control for each given control.

Answer 14

e.

To determine

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

Answer 15

e.

To determine

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

Answer 16

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Ch. 12 - Prob. 1RQ Ch. 12 - Prob. 2RQ Ch. 12 - Prob. 3RQ Ch. 12 - Describe how the nature of evidence used to...Ch. 12 - Prob. 5RQ Ch. 12 - Prob. 6RQ Ch. 12 - Prob. 7RQ Ch. 12 - Prob. 8RQ Ch. 12 - Prob. 9RQ Ch. 12 - Prob. 10RQ

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

Solution Summary: The author states the type of specific control activity or activities to which it applies: adequate documents and records, physical control over assets, separation of duties, etc.

State the type of specific control activity or activities to which it applies such as adequate documents and records or physical control over assets and records.

List the transaction related audit objective which applies on the each internal control.

List the specific misstatement which is likely to be prevented if internal control exists and is effective.

Identify the specific misstatement that could result from the absence of the control for each given control.

List one audit test that the auditor could use to uncover misstatements resulting from the absence of the control for the given internal controls.

Chapter 12 Solutions