Notes, summaries, assignments, exams, and problems for Primary education

PLANNING

In obtaining an understanding of an entity’s internal controls that are relevant to audit planning, an auditor is required to obtain knowledge about the:

• Design of relevant internal controls pertaining to financial reporting in each of the five internal control components.

The risk that an auditor will conclude, based on substantive tests, that a material misstatement does not exist in an account balance when, in fact, such misstatement does exist is referred to as:

• Detection Risk

Relationship between control risk and detection risk is ordinarily:

• Inverse.

The audit program usually cannot be finalized until the:

• Consideration of the entity’s internal control has been completed.

Which of the following relatively small misstatements most

The Discovery of Cells

a) In 1655, scientist Robert Hooke made an observation while examining a dried section of cork tree with a crude light microscope. He observed small chambers and named them "cells."

What are Cells?

b) The cell is known as the basic structural and functional unit of life, as all organisms are composed of cells.

c) Single-celled organisms are called unicellular (e.g., amoeba), while those having more than one cell are called multicellular.

Functions of Cells

d) All basic chemical and physiological functions of living beings - for example, repair, growth, movement, immunity, communication, and digestion - are carried out inside the cells.

Structure of a Cell

e) Cells are mostly round, spherical, or elongated. Some cells are quite... Continue reading "Exploring the Building Blocks of Life: An Introduction to Cells" »

Key Characteristics of Common Equity

Which of the following is not a characteristic of common equity?

The company is obligated to make periodic dividend payments.

Statutory Voting Explained

The type of equity voting right that grants one vote for each share of equity owned is referred to as statutory voting.

Understanding Preference Shares

All of the following are characteristics of preference shares except:

• They are either callable or putable.
• They receive an additional dividend exceeding a predetermined level.

Private Equity Securities: Market-Determined Quoted Prices

Which of the following statements about private equity securities is incorrect?

They have market-determined quoted prices.

Venture Capital Investments: Mezzanine Financing

Venture capital... Continue reading "Understanding Equity Securities: Key Characteristics and Risks" »

Which of the following is most likely an issuer bonds: HEDGE FUND

A bond issued by a city would most likely be classified as a: NON-SOVEREIGN GOVERNMENT BOND

A fixed-income security issued with a maturity at issuance of nine months is most likely classified: MMSECURITY

The price of a bond issued in the US by a British company and denominated in US dollars is most likely: CHANGE AS US INTEREST RATES CHANGE

Interbank offered rates are best described as the rates at which major banks can: BORROW UNSECURED FUNDS

A company issues floating-rates bonds. The coupon rates is expressed as the three-month Libor plus a spread. The coupon payments are most likely: LIBOR INCREASES

A 10-year bond was issued four years ago. The bond is denominated in US dollars,

Understanding Quality

Quality is a subjective subject; it can be clustered into five quality points of view:

1. Internal processes
2. Business performance
3. Product/service characteristics
4. Customer perception
5. Company strategy

Quality Planning – The process of identifying the quality standards relevant to the project and deciding how to meet them.

Quality Improvement – The purposeful change of a process to improve the confidence or reliability of the outcome.

Quality Control – The continuing effort to uphold a process’ integrity and reliability in achieving an outcome.

Quality Assurance – The systematic or the planned actions necessary to offer sufficient reliability that a particular service or product will meet the specified requirements.

What is Quality?

Incoterms: FAS, FOB, CIP, and CPT

What kind of cargo is used for FAS? Why?

Containers are used for FAS because the goods are carried on board a ship.

Which are the two possible cases of delivery for FCA?

• When the goods have been loaded on the transport designated by the buyer or by a person acting on its behalf.
• When the goods are made available to the seller's carrier transport, without being discharged.

Allocation of Costs and Risk for FAS and FOB

The seller is required to deliver the goods alongside the actual ship on the pier. From that point forward, the buyer bears all costs (loading cost, freight, insurance) and risks. Under FAS terms, the buyer is required to clear the goods for export and pay the cost of loading the goods.

Why is it so important

Remedies for Breach of Contract

Rescission of the Contract

Suit for Damages