Joan Is the Owner of a Small Manufacturing Company

question 27

Essay

Joan is the owner of a small manufacturing company.In prior years,your firm has conducted a review engagement of the company.However,this year,Joan obtained a loan from the federal business development bank and is required to have an audit of her financial statements.When you started asking about controls and procedures at the company,Joan got pretty upset.
"All you need to be concerned about is the numbers! Why are you asking all of these questions? It takes too much time away from my staff to answer these questions! Just check the numbers and let us get on with our work!"
You calmed her down a bit,and reminded her about the general discussion that occurred with the engagement letter.You have invited her for coffee to briefly explain the following items:
1.Why auditors are concerned about internal controls.
2.Why auditors are required to be concerned about internal controls.
3.What you need to do to understand internal controls.
4.What you will do once you have documented your understanding of internal controls.
Required:
Explain what you will say to Joan.

Comprehend the criticisms and rationale behind agricultural policies and government subsidies.

Describe the inelasticity of food demand and related economic principles.

Explain the causes and effects of short-run instability in agriculture.

Understand the historical and economic context of the decline of the agriculture industry.

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Definitions:

Explicit Memories

Memories that one can intentionally remember, like specific details and happenings.

Nondeclarative

A type of long-term memory that stores skills, habits, and learned responses, it operates unconsciously and manifests through performance rather than conscious recollection.

Long-Term Memory

The capacity for holding, storing, and retrieving information over prolonged periods, often encompassing a lifetime.

Alzheimer's Disease

A progressive neurodegenerative disorder characterized by cognitive decline, memory loss, and changes in behavior, attributed to brain cell death and the breakdown of connections between neurons.