In Spite of His Assertions That He Carried-Out Fraud Alone

question 65

Multiple Choice

In spite of his assertions that he carried-out fraud alone, convicted investment advisor Bernard Madoff's independent auditor is now under investigation. The auditor is accused of not doing his job. Rather than verify Madoff's company records, the F.B.I claims that he "rubber-stamped" the records. Knowing what you have learned about the importance of auditing, which of the following statements do you understand to be most accurate?

• A)Investment firms should always hire private accountants. Public accountants do not have enough information about the firm to prepare audits.
• B)Independent auditors only prepare audits for not-for-profit firms. Madoff hired the wrong professional for the job.
• C)Independent auditors must follow strict rules, including new rules put in place by the Sarbanes-Oxley Act.
• D)The Sarbanes-Oxley Act does not institute rules of practice for independent auditors. Independent auditors follow strict rules created by the AICPA, American Institute of Certified Public Accountants.

Understand and analyze the impact of economies of scale in supply chain operations.

Analyze different pricing strategies and their effects on supply chain demand and efficiency.

Apply principles of supply chain management to evaluate and suggest competitive strategies.

Explain the trade-offs between supply chain responsiveness and efficiency.

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Definitions:

WIP Inventory

Work-in-Process (WIP) Inventory consists of materials and components that have begun their transformation process but are not yet completed products.

Longest Processing Time

A rule used in scheduling that prioritizes jobs or tasks according to those with the longest duration first.

Lateness

The state of being late or delayed in comparison to a predetermined schedule or deadline.

Job Due Date

The specified deadline by which a job, task, or project is to be completed or delivered.