Download Category: Accounting

What purpose should an auditor’s understanding of the internal control components be used in planning an audit An auditor is required to obtain sufficient understanding of each component of an entity’s internal control system to plan the audit of the entity’s financial statements and to assess control risk for the assertions embodied in the account … Read more

Describe the characteristics of direct vs. indirect expenses and variable vs fixed expense Community Hospital is considering offering a new clinic for hospital employees and their dependents. The Accounting Manager would like you to assist with a review of cost assignments within the cost accounting system for a new service that is being considered. They … Read more

Can a foreign acquisition target be assessed like any other asset Access the International Federation of Accountants Web site at: http://www.ifac.org/auditing-assurance/ (Links to an external site.)Links to an external site. Discussion 2 Can a foreign acquisition target be assessed like any other asset? Provide your argument as to why or why not. Answer preview to can a … Read more

What are some limitations of financial statements analysis This week we are learning about financial statement analysis and how to compute various ratios. This is a great way to understand how a company is doing. However, what are some limitations of financial statements analysis? Meaning, what are some things which make financial statement analysis less … Read more