Consider the Following Short Case as You Respond to the Next

question 20

Multiple Choice

Consider the following short case as you respond to the next question: Robert is the president and CEO of Computer Solutions; the firm's main activity is installing enterprise resource planning software. When a client calls Robert, he does an "intake interview" where he assesses the client's needs and learns about their company. Robert tries to interview at least a dozen people at each client, including top management and mid- and lower-level employees.What should Robert do immediately after he completes the interviews?

• A)Determine the client's risk exposures and design appropriate internal controls.
• B)Recommend the client purchase a specific ERP software package.
• C)Start creating transaction, master and junction files on the client's network.
• D)Test the current system.

---

Definitions:

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies by reporting these profits as income.

Retained Earnings

Cumulative net income of a company that has not been distributed to shareholders as dividends, reinvested in the business.

Non-Controlling Interest

The equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Consolidated Shareholders' Equity

This is the total equity owned by shareholders as reported in the consolidated financial statements of a parent company and its subsidiaries.