There Are Three Reasons Why an Experienced Member of the Audit

question 111

Multiple Choice

There are three reasons why an experienced member of the audit firm must thoroughly review audit documentation of the completion of the audit, including

• A) to evaluate the performance of inexperienced personnel.
• B) to make sure that the audit meets the CPA firm's standard of performance.
• C) to counteract the bias that often enters into the auditor's judgment.
• D) all of the above.

Understand the concept of progressive, regressive, and proportional taxes, and their impact on different income groups.

Analyze the effects of specific taxes, including excise taxes and property taxes, on market equilibrium, tax incidence, and government revenue.

Evaluate the efficiency loss of taxes and the concept of deadweight loss in taxation.

Identify factors that determine the shifting of tax burdens between producers and consumers.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive in the market.

Economic Rent

Income derived from the possession of a unique resource, exceeding that which is needed to keep the resource in its current employment.

Economic Profit

The profit from producing goods and services while considering both explicit and implicit costs, including opportunity costs.

Producer Surplus

The gap between the price that sellers are prepared to accept for a product and the real price it sells for in the market.