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NEW QUESTION # 39
During interviews with the inventory management personnel, an internal auditor learned that salespersons often order inventory for stock without receiving the approval of the vice president of sales. Also, detail testing showed that there are no written approvals on purchase orders for replacement parts. The detail testing is a good example of
- A. Corroborative evidence.
- B. Indirect evidence.
- C. Circumstantial evidence.
- D. Subjective evidence.
Answer: A
Explanation:
Corroborative evidence is evidence from a different source that supplements and confirms other evidence. For example, oral testimony that a certain procedure was not performed may be corroborated by the absence of documentation.
NEW QUESTION # 40
Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?
- A. The cost of goods sold for the period will be understated.
- B. The cost of goods sold for the period will be overstated.
- C. The net income for the period will be understated.
- D. There will be no effect on the cost of goods sold or the net income for the period.
Answer: B
NEW QUESTION # 41
Refer to the exhibit.
The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?
- A. 21 days.
- B. 22 days.
- C. 27 days.
- D. 51 days.
Answer: C
NEW QUESTION # 42
Governments most likely restrict trade in the long run to:
I. Help foster new industries.
II. Protect declining industries.
III. Increase tax revenues.
IV.
Foster national security.
- A. II and III only
- B. I, II, and IV only
- C. I and II only
- D. I only
Answer: C
Explanation:
Governmental impediments to global competition are generally imposed for the announced purpose of protecting local entities and jobs and developing new industries.
They also may have the effect of raising revenue in the short run. In the long run, tax and revenues will decline because of reduced trade. Examples of governmental impediments are tariffs; duties; quotas; domestic content rules; preferences for local entities regarding procurement, taxes. R&D, labor regulations, and other operating rules; and laws e.g., anti bribery or tax) enacted by a national government that impede national entities from competing globally. These impediments are most likely when industries are viewed as crucial.
NEW QUESTION # 43
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