How does the materiality of an item affect the acceptable and inherent risk borne Discussion topic: 1. “Material” has a different definition in accounting than it does in everyday life. What does “material” mean in the context of an audit, and who determines whether an item is material? How does the materiality of … Read more
Accountants can be independent but some are employed by the business they do accounting for #1. Auditors are normally independent. Accountants can be independent but some are employed by the business they do accounting for. Auditors are independent so that they aren’t associated with the business, so they won’t be bias. External users don’t trust … Read more
Audit of financial statements is to check the accuracy of accounting principles used Student Post #1. Audit of financial statements is to check the accuracy of accounting principles used, examine the overall financial presentation. It is used to confirm that they are in accordance with all guidelines and regulations. The goal of auditing internal controls … Read more
What are the major reasons why companies change accounting methods Discussion #1. In recent years, the?Wall Street Journal has indicated that many companies have changed their accounting principles. What are the major reasons why companies change accounting methods? Student Response #2. For most companies they are always looking for a way to make everything easier … Read more
How does a firm’s capital structure relate to your personal capital structure How does a firm’s capital structure relate to your personal capital structure? In what ways are they similar? Provide examples of how you use debt and equity in your personal financial life that parallels the basic capital structure decisions made by a firm. … Read more
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