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

Key Concepts in Audit Planning and Internal Controls

Understanding and Planning

• In obtaining an understanding of an entity’s internal controls relevant to audit planning, what knowledge is an auditor required to obtain?
  a) The design of relevant internal controls pertaining to financial reporting in each of the five internal control components.
• When can the audit program usually be finalized?
  a) After the consideration of the entity’s internal control has been completed.
• When planning an audit, how should the auditor’s knowledge about the design of relevant internal controls be used?
  b) To identify the types of potential misstatements that could occur.

Risk Assessment and Materiality

• What is the risk that an auditor will conclude, based on substantive

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" »

Understanding Call and Put Options

A call option grants the owner the right to purchase a specified financial instrument for a specified price (the exercise price) within a specified period of time.

Option Moneyness Definitions

The relationship between the market price of the underlying security and the exercise price determines if an option is "in the money" or "out of the money."

• A call option is in the money when the market price of the underlying security exceeds the exercise price.
• A put option is in the money when the exercise price exceeds the market price of the underlying security.
• A put option is out of the money when the market price of the security exceeds the exercise price.

Managing Option Positions

Sellers (writers) of call options can... Continue reading "Mastering Options Pricing and Capital Market Theory Concepts" »

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?

La Cancelleria Reial al Segle XIII

La cancelleria reial es creà amb la finalitat de posar ordre administratiu. És una institució de la cort encarregada d’elaborar i arxivar la documentació oficial de la Corona. Com que s'usava el llatí, llengua culta des que l’aprenien a l’escola, la diferència entre el llatí escrit i la llengua oral va fer necessari que aquests documents passaren a ser redactats també en aragonès i català, conservant però l’estil dels textos llatins. Així, la llengua va adquirir una perfecció i un equilibri clàssic.

Primers Testimonis Escrits

Com a traducció de la fi del segle XII, el Llibre jutge és un codi legislatiu dels visigots. Al final del segle XII, el document més important són les Homilies

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Key Concepts in Business Ethics

1. Terminal values: Preferences about desired end states.
2. Instrumental values: Preferences regarding the means to desired ends.
3. Procedural justice: Concerned that policies and rules are fairly applied.
4. Distributive justice: Concerned that people are treated the same regardless of personal characteristics.
5. Interactional justice: The degree to which others are treated with dignity and respect.
6. Cultural relativism: Suggests there is no one right way to behave; ethical behaviour is determined by its cultural context.
7. Ethical dilemma: A situation that, although offering potential benefit or gain, may be considered unethical.
8. Ethics training: Seeks to help people understand the ethical aspects of decision-