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Sarbanes-Oxley Act requires each of the following: (You may select more than one answer. Single click the box with the question

nordsb [41]

Answer: An effective Internal Control

Auditors must evaluate internal controls

Auditor's work overseen by Public Accounting Board

Explanation:

The early part of the 21st century saw shocking financially improper activities by companies such as WorldCom and Enron exposed to the world. Investor Confidence was shaken and the government needed to do something to restore it.

This was why in 2002, the US Congress passed the Sarbanes-Oxley act that aimed to ensure that the actions of those companies were never repeated.

The act requires the following;

a) An effective Internal Control

The act requires that companies enact very effective Internal controls to detect financial irregularities and even went forward to make it the responsibility of the Top Executives to ensure that this is so.

b) Auditors must Evaluate Internal Controls.

Auditors had to change their auditing strategies that were deemed inefficient. They are now required to properly evaluate in-depth, the internal controls that a company adopts to be able to give an opinion on it and they do this based on the guidelines of the Public Accounting Board.

c) Auditor's work overseen by Public Accounting Board

The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act with it's main purpose being to monitor and oversee auditors as they audit companies so that they may protect the public from false financial information. They set rules and standards that Auditors must follow and these rules in turn have to be approved by the Securities and Exchanges Commission (SEC).

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2 years ago

Contours, Inc., knows each drill bit can cut approximately 100,000 holes before the hole size is smaller than the print specific

anzhelika [568]

Answer:

A. Concurrent Control

Explanation:

Management control represents organisational effort to set objectives and design adequate monitoring mechanisms to be able to constantly compare actual performance of systems to the set objectives or standards. In situations where deviations are recorded, adequate mechanisms are put in place to measure the level of the deviations and also take corrective actions.

There are three different types of controls that an organisation can employ in its strategic management efforts. They include Feedforward, Concurrent and Feedback Controls. Controls are meaure taken by organisations focusing on

The feedforward control concentrates on input regulation to ensure that predetermined objectives and performance standards are achieved with little or no deviations. Feedforward system is also called a preventive, steering and a predictive system. It ensures that resources such as finance, human and capital resources are adequately regulated.

The feedback system waits for the output of processes to find out if there were deviations in the performance standard set or not. If there were deviations, then controls are put in place to ensure that the next batch of production meet standard.

Concurrent Control on the other hand, is a control system that seeks to ensure that adequate output and performance standard is maintained by regulating ongoing processes to ensure conformity to standard. It is also called the screening or yes-no control. It also requires a close monitoring of the tasks and activities on-going and making relevant queries to stop deviations or minimize deviations

Contours, Inc already knows that the limit of the drill bit is 100,000 holes and if allowed to reach this limit, the out in form of hole sizes will deviate from the standard, it will be smaller than the expected specification. Contours is therefore ensuring that the drill does not get to its limit by changing the bit at 95,000 uses to ensure that standards are met and deviations are avoided.

This is the concurrent control, the yes-no query is this:

Are we at 95,000 drills? If yes, change the drill, if no, continue the drilling

Of course, it will cost Contours more financial obligation because, the drill can still make about 5,000 holes before it deviates but it is a chance the organisation is not ready to take.

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2 years ago

Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for e

eduard

Answer:

Great Adventures

a) Adjusting Entry for Uncollectible Accounts:

Date General Journal Debit Credit

Jun. 30 Uncollectible Expense $2,320

Allowance for Uncollectibles $2,320

To provide 8% allowance for uncollectibles.

b) To accrue one month of interest on the note receivable:

Date General Journal Debit Credit

Jun. 30 Interest Receivable $40.83

Interest on Notes $40.83

To accrue one month of interest.

c) GREAT ADVENTURES, INC.

Partial Balance Sheet as at June 30, 2022

Assets

Current Assets:

Accounts Receivable $29,000

less allowance for uncollectibles 2,320

Net Accounts Receivable $26,680

Explanation:

a) Accounts Receivable

Date Description Debit Credit Balance

Feb. 25 Kr. Kendall's Boys Scout $4,000 $4,000

Feb. 28 Cash $3,840 160

Feb. 28 Cash Discount 160 0

Mar. 19 Reynold 5,000 5,000

Mar. 27 Cash 4,800 160

Mar. 27 Cash Discount 200 0

Apr. 7 Cash 8,500 (8,500)

Apr. 14 Elks Lodge 8,500 0

Apr. 30 Myers Manufacturing 7,000 7,000

May 31 7% Note Receivable 7,000 0

Jun. 15 MBA Groups 29,000 29,000

b) Allowance for uncollectibles = $29,000 x 8% = $2,320

c) Interest on Notes = ($7,000 x 7%)/12 = $40.83

3 0

2 years ago

During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,00

IceJOKER [234]

Answer and Explanation:

The effect of undervaluation of Inventory is shown below:-

Inventory Understated = Inventory counted + Correct value of inventory

= $545,000 - $554,000

= $9,000

Now, the effect of undervaluation of Inventory is

Cost of goods overstated by $9,000

Net income understated by $9,000

Retained earning understated by $9,000

Assets (Current assets - Inventory) understated by $9,000

5 0

2 years ago

Nine subjects, 87 to 96 years old, were given 8 weeks of progressive resistance weight training. strength before and after train

Serga [27]

Answer:

11.611 +/- 3.013

Explanation:

3 3.5 4 6 7 8 8.5 12.5 15

7 17 19 12 19 22 28 20 28

difference

4 13.5 15 6 12 14 19.5 7.5 13

mean = 11.611

the standard deviation ⇒ 7.611² + 1.889² + 3.389² + 5.611² + 0.389² + 2.389² - 7.889² + 4.111² + 1.389² = 57.927 + 3.568 + 11.485 + 31.483 + 0.151 + 5.707 + 62.236 + 16.9 + 1.929 = 191.386/9 = √21.265 = 4.611

standard deviation = 4.611 1.918

confidence interval = mean +/- [(standard deviation/√9) x 1.96]

11.611 + [(4.611/3) x 1.96] = 11.611 + 3.013

11.611 - [(4.611/3) x 1.96] = 11.611 - 3.013

4 0

2 years ago