AUDITING RMU
11th Edition
ISBN: 9781260934830
Author: MESSIER
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 14, Problem 14.15MCQ
To determine
Introduction:
Internal Control is a policy, procedure, set of rules, designed and implemented by management and those charged with governance, so as to obtain reasonable assurance regarding achievement of entity’s objective, to safeguard assets and protect from any chance of fraud or error. Its objective is operational efficiency and effectiveness for reliable financial reporting.
The auditor during an audit checks whether Internal Control exists or not, and if it exists it is effective or not and followed in continuation or not.
Weakness in internal control is defined as deficiency and the result of such deficiency in material misstatement in entity’s financial statements.
To define: Weakness in entity’s control
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Use the following information to answer this question:
Net sales
Windswept, Incorporated
2024 Income Statement
Cost of goods sold
Depreciation
($ in millions)
Earnings before interest and taxes
Interest paid
Taxable income
Taxes
Net income
$ 14,150
8,150
515
$ 5,485
108
$ 5,377
1,129
$ 4,248
Windswept, Incorporated
2023 and 2024 Balance Sheets
($ in millions)
2023
2024
2023
2024
Cash
Accounts received
$ 300
$ 330
Accounts payable
$ 1,980
$1,955
1,190
1,090
Long-term debt
1,110
1,430
Inventory
2,120
1,795
Common stock
3,440
3,080
Total
$ 3,610
$ 3,215
Retained earnings
690
940
Net fixed assets
3,610
Total assets
$ 7,220
4,190
$ 7,405
Total liabilities & equity
$ 7,220
$ 7,405
What is the fixed asset turnover for 2024?
Chapter 14 Solutions
AUDITING RMU
Ch. 14 - Prob. 14.1RQCh. 14 - Prob. 14.2RQCh. 14 - Prob. 14.3RQCh. 14 - Prob. 14.4RQCh. 14 - Prob. 14.5RQCh. 14 - Prob. 14.6RQCh. 14 - Prob. 14.7RQCh. 14 - Prob. 14.8RQCh. 14 - Prob. 14.9RQCh. 14 - Prob. 14.10RQ
Ch. 14 - Prob. 14.11RQCh. 14 - Prob. 14.12MCQCh. 14 - Prob. 14.13MCQCh. 14 - Prob. 14.14MCQCh. 14 - Prob. 14.15MCQCh. 14 - Prob. 14.16MCQCh. 14 - Prob. 14.17MCQCh. 14 - Prob. 14.18MCQCh. 14 - Prob. 14.19MCQCh. 14 - Prob. 14.20MCQCh. 14 - Prob. 14.21MCQCh. 14 - Prob. 14.22MCQCh. 14 - Prob. 14.23PCh. 14 - Prob. 14.24PCh. 14 - Prob. 14.25PCh. 14 - Prob. 14.26PCh. 14 - Prob. 14.27PCh. 14 - Prob. 14.28P
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