Approved Auditing Standards Prescribe

question 18

Multiple Choice

Approved auditing standards prescribe:

• A)The basic principles of the audit, with the essential procedures and guidance contained in Guidance statements.
• B)The basic principles and general guidance, with essential procedures contained in Guidance statements.
• C)The basic principles and essential procedures of the audit with general guidance contained in Guidance statements.
• D)The basic principles and essential procedures of the audit together with related general guidance with guidance on procedural matters or on entity- or industry-specific issues contained in Guidance statements.

Understand the concepts of binding and nonbinding price ceilings and floors.

Analyze the impact of government-imposed price controls on market equilibrium.

Identify the effects of minimum wage laws on employment and unemployment.

Explain the consequences of surplus and shortage caused by price controls.

---

Definitions:

Geneva Accords

Agreements concluded in Geneva in 1954, which temporarily separated Vietnam into two zones, aiming to end hostilities in Indochina and pave the way for political negotiations.

1954

The year notable for the U.S. Supreme Court decision Brown v. Board of Education, which declared state laws establishing separate public schools for black and white students to be unconstitutional.

Democratic Republic

A form of government where the power rests in the hands of the people, who elect representatives to make decisions on their behalf.

France

A country in Western Europe known for its history, art, fashion, and cuisine, and its capital is Paris.