Indicate Whether You Agree or Disagree with the Following Statements

question 9

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) During her career as a public accountant, Faye Teller has performed audits of large and medium sized clients. When she visited a small business client, a food wholesaler that has a history of poor controls, she gave a lot of thought to performing her planned audit approach. She decided to use the combined audit approach.
b) Lea Konczynski was discussing with her audit manager how she could assess whether controls are being monitored. Her audit manager mentioned that the internal audit function is a primary source of assessing and monitoring control activities.
c) The audit senior has been reviewing the key controls in the purchasing and payables process. She has been asked by a junior auditor: "When should the client set up the payable?" She answers: "The company can set up the payable when the goods are received in good order and then the client can make the payment when the invoice is received."
d) The auditor decided to review transaction-level controls at year-end.

Understand and apply the concept of interest rates and their impact on financial formulas.

Perform algebraic operations including simplification, factorization, and expansion.

Solve linear equations and systems of linear equations accurately.

Apply mathematical operations to polynomial expressions.

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Definitions:

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts, recorded on the right side of a ledger.

Accounts

Records that summarize and classify all financial transactions of a business, including assets, liabilities, equity, revenue, and expenses.

Debt Ratio

A ratio indicating a company’s leverage by comparing its total debt to its total assets.

Financial Condition

A description of an entity's financial status, assessing its ability to remain solvent and meet its obligations, based on its assets, liabilities, and equity.