a.
State the suggested procedure for the activity where the custodian may withdraw cash on Friday to make payments for weekend activities.
b.
State the suggested procedure to inspect the activity of the assistant purchasing agent who is promoted to chief agent and added eight new vendors to the authorized vendor’s list.
c.
State the procedure to check the act of stealing pay checks of resigned employees and who did not collect their last check from the payroll supervisor.
d.
State the activity to check the
e.
State an activity to inspect the act of cashier who borrows from cash receipts and holds the next day’s receipt until the amount of shortage is recovered.
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Chapter 6 Solutions
AUDITING+ASSURANCE SERVICES-CONNECT >I<
- Gross profit would be?arrow_forwardRefer to the investment opportunity for 2025 (purchase of new machinery) and calculate the following. Where discount factors are required use only the four decimals present value table (Appendix 1). Ignore taxes. 1. Payback Period (expressed in years, months and days). 2. Accounting rate of return on initial investment (expressed to two decimal places). 3. Net Present Value. Your answer must include the calculation of the present value(s) and NPV. 4. Internal Rate of Return (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. 5. Internal Rate of Return (expressed to two decimal places) if the machine is expected to have a salvage value of R200 000. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation.arrow_forwardWhat is the company's stockholders equity?arrow_forward
- A company’s fixed monthly expenses are $35,000, and its contribution margin ratio is 62%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $110,000? Helparrow_forwardBy how much will the contribution margin increase?arrow_forwardThe note payable liability on December 31, is closest to?arrow_forward
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