Indicate Whether You Agree or Disagree with the Following Statements

question 12

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Rejean Tremblay feels that an internal auditor that reports to the chief financial officer of the company can be as independent as an auditor that reports to the audit committee.
b) Angela Pelletier discovered a very material overstatement in the financial statements of McKenzie Growth. She felt that the misstatement would have an impact on the decisions of users of the financial statements, and indicated to her audit senior that she would be including it as an "emphasis of matter" paragraph in the audit report.
c) An auditor is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
d) An assurance engagement involves evaluation or measurement of subject matter against criteria.

Recognize the optimization condition where an individual's indifference curve is tangent to their budget constraint.

Grasp the concept of the labor supply curve and how it can be affected by changes in wages, considering both income and substitution effects.

Understand the impact of price changes on consumer choices between different goods, highlighting the substitution effect.

Analyze real-world examples to understand market behaviors and flaws in pricing strategies.

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Definitions:

Principal

The main party to a transaction or contract who has authorized another (an agent) to act on their behalf, or the primary sum of money owed on a loan, excluding interest.

Third Party

An individual or entity that is not a direct participant or primary party involved in a transaction or legal matter.

Legal Capacity

The ability of an individual to understand and appreciate the consequences of their actions for the purpose of entering legally binding contracts or making other legal decisions.

Ratifies

To officially approve or confirm an agreement or contract, making it valid and legally binding.