Match the Audit Step Below with Its Appropriate Area

question 65

Essay

Match the audit step below with its appropriate area. You may use an area more than once and more than one area may apply.
(a) Trace amounts per the cash disbursement journal to the appropriate liability account:
(b) Trace the stock issued per the transfer agent report to equity:
(c) Trace EPS to net income and stockholders' equity:
(d) Trace overfunded liability amount to actuary report:
(e) Recalculate interest expense using face amount and current terms:
(f) Recalculate compensation expense using stock compensation plans approved by the board of directors:
(g) Recalculate stock compensation expense using a model such as Black-Scholes for valuation:
(h) Recalculate taxes payable:
(i) Review debt covenants:
(j) Review cash equivalents for maturity:

Distinguish between nominal and real exchange rates and their economic implications.

Understand the concepts of saving, investment, and their roles in determining a country's trade balance.

Evaluate the effects of changes in real interest rates on international capital flows and exchange rates.

Apply the concept of purchasing-power parity to explain exchange rate movements.

---

Definitions:

Organizational Resources

Various assets, including financial, physical, human, and intangible elements, that an organization utilizes to function effectively.

Potential Donors

Individuals or entities likely to contribute resources, such as money or goods, to support the activities or goals of a nonprofit organization or cause.

Kohlberg

refers to Lawrence Kohlberg, a psychologist known for his theory of moral development, which suggests that individuals progress through stages of moral reasoning.

Preconventional Level

A stage in Kohlberg's theory of moral development where an individual's sense of morality is externally controlled, based on consequences for oneself rather than societal standards.