The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amounts are denominated in kroner (Kr). January 1, 2020 December 31, 2020 Accounts payable (11,000 ) (24,000 ) Accounts receivable 32,000 82,000 Accumulated depreciation—buildings (23,000 ) (28,000 ) Accumulated depreciation—equipment 0 (5,300 ) Bonds payable—due 2023 (53,000 ) (53,000 ) Buildings 112,000 94,000 Cash 38,000 8,300 Common stock (62,000 ) (74,000 ) Depreciation expense 0 18,000 Dividends (10/1/20) 0 35,000 Equipment 0 33,000 Gain on sale of building 0 (6,300 ) Rent expense 0 15,800 Retained earnings (33,000 ) (33,000 ) Salary expense 0 23,000 Sales 0 (92,000 ) Utilities expense 0 6,500 Additional Information Agee issued additional shares of common stock during the year on April 1, 2020. Common stock at January 1, 2020, was sold at the start of operations in 2013. Agee purchased buildings in 2014 and sold one building with a book value of Kr 10,300 on July 1 of the current year. Equipment was acquired on April 1, 2020. Relevant exchange rates for 1 Kr were as follows: 2013 $ 2.55 2014 2.35 January 1, 2020 2.65 April 1, 2020 2.75 July 1, 2020 2.95 October 1, 2020 3.05 December 31, 2020 3.15 Average for 2020 2.85 Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $66,950, which included a remeasurement loss of $12,350. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2020? The December 31, 2019, U.S. dollar-translated balance sheet reported retained earnings of $87,500 and a cumulative translation adjustment of $6,150 (credit balance).

Answers

Answer 1

The foreign currency is the functional currency, and the translation adjustment for 2020 is $72,150.

Agee Company's 2020 Balance Sheet in kronerJanuary 1, 2020December 31, 2020Accounts payable (11,000)(24,000)Accounts receivable32,00082,000Accumulated depreciation—buildings(23,000)(28,000)Accumulated depreciation—equipment0(5,300)Bonds payable—due 2023(53,000)(53,000). Buildings-112,00094,000 Cash38,0008,300 Common stock(62,000)(74,000) Depreciation expense018,000  Dividends (10/1/20)035,000 Equipment-033,000 Gain on sale of  building-06,300. Rent expense-015,800. Retained earnings(33,000)(33,000)Salary expense-023,000Sales0(92,000). Utilities expense06,500Remeasurement gain or loss for 2020. Here is the table of relevant exchange rates for 1 Kr that we will be using:2013$2.5520142.35January 1, 20202.65April 1, 20202.75July 1, 20202.95October 1, 20203.05December 31, 20203.15Average for 20202.85. The calculation of the remeasurement gain or loss is as follows: Calculate the translated beginning retained earnings using the 2019 remeasurement loss:$66,950 - ($12,350) = $54,600.Calculate the translated ending retained earnings:$33,000 x 3.15 = $103,950.Calculate the remeasurement gain or loss:$103,950 - $54,600 - $35,000 (dividends) = $14,350.Remember that a gain is positive, and a loss is negative. Therefore, the remeasurement gain for 2020 is $14,350.Translation adjustment for 2020The following formula calculates the translation adjustment: Ending cumulative translation adjustment - beginning cumulative translation adjustment + current-period translation adjustment.$6,150 - 0 + ($33,000 - (-33,000)) = $72,150.

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Related Questions

Sheffield Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows: Per Units Unit Price 190 $6,00 Total Balance, 1/1/20 $1140 100 5. 20

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The total balance of Sheffield Company's inventory account on January 1, 2020, was $1,140. During the month of January, they purchased 190 units at a unit price of $6.00 and an additional 100 units at a unit price of $5.20.

To calculate the total cost of the inventory, we multiply the number of units purchased by their respective unit prices.

For the first purchase of 190 units at $6.00 each, the cost is 190 * $6.00 = $1,140.

For the second purchase of 100 units at $5.20 each, the cost is 100 * $5.20 = $520.

To determine the total balance, we add the cost of the purchases to the initial balance:

$1,140 (initial balance) + $1,140 (first purchase) + $520 (second purchase) = $2,800.

Therefore, the total balance of Sheffield Company's inventory account for the month of January 2020 is $2,800.

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Conduct research on cases and issues in global trade. What types of businesses are best suited for doing business online?
Why? What type of issues might an online business deal with in the global market?

Answers

Operating a business online entails dealing with technical obstacles, security concerns, and consumer distrust.

Research based problem:

While you can avoid or at least mitigate these difficulties, it's critical for company owners to keep an eye on prospective concerns in order to avoid big calamities.

Because the main providers they provide are information-based, professional service based firms are well-suited for the Internet.

Because the provision of these services necessitates the provider's physical presence, a household chores or lawn maintenance service company is not well suited for the Internet.

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Overview: Many public corporations - and even a few private companies - report what they do in terms of environmental, social, and economic performance. This can be termed sustainability reporting (or triple-bottom line reporting), and represents a "self- assessment". The companies often focus on a particular product or service they offer, and discuss how this offering impacts (or benefits) the environment. However, the quality of information that is reported, how the information is assessed, and how it is presented can vary tremendously. Using a scale of 0→10, with 0 being completely inadequate, and 10 being superior, score the corporate report in matrix format (see example below). Explain what elements you reviewed and how you arrived at this score. Note that the absence of a report does NOT necessarily mean the company will score "zero". You are basically evaluating how "good" the report is. You may consider the factors discussed in class, the GRI report guidelines, and other measures provided. For example: - Is there an environmental (mission) statement? - Is there a senior company official responsible for environment or sustainability? - Does the report use an "excessive" amount of green/blue imagery? - What is reported and for how long? - ... Etc. You may argue the points however you choose, but at the very least, present the information as shown below. If you wish to weight the issues, you may do so but include an explanation of why you think your weighting is appropriate for your analysis.

Answers

Evaluating sustainability reports involves considering elements such as mission statements, senior officials, imagery, content, guidelines adherence, stakeholder engagement, and transparency.

I apologize, but as a text-based AI, I am unable to evaluate or score specific corporate reports in real-time. Evaluating a sustainability report requires a comprehensive analysis of various factors, including the content, transparency, credibility, stakeholder engagement, and adherence to reporting guidelines. It also involves understanding the specific context and objectives of the company in question.

To evaluate a corporate report, you could consider the following elements and assign scores based on the quality and extent of their presence:

1. Environmental (mission) statement: Does the report include a clear and well-defined environmental mission statement? (Score: 0-10)

2. Senior company official responsible for environment or sustainability: Is there a designated high-level executive responsible for overseeing environmental or sustainability initiatives? (Score: 0-10)

3. Use of green/blue imagery: Does the report excessively rely on imagery without providing substantive content? (Score: 0-10)

4. Content and duration of reporting: What information is covered in the report, and for how many years has the company been reporting? (Score: 0-10)

5. Adherence to reporting guidelines: Does the report align with recognized reporting frameworks such as the Global Reporting Initiative (GRI) guidelines? (Score: 0-10)

6. Stakeholder engagement: Does the report demonstrate meaningful engagement with stakeholders and incorporate their perspectives? (Score: 0-10)

7. Transparency and credibility: Is the report transparent in disclosing environmental impacts, goals, and progress? Is the information presented in a credible and verifiable manner? (Score: 0-10)

These are just a few examples of the factors that can be considered when evaluating a sustainability report. Each element can be weighted based on its importance and relevance to the specific context of the company being assessed.

It's important to note that a comprehensive evaluation of a corporate report requires a detailed analysis and a thorough understanding of the specific company, its industry, and the reporting standards. It's recommended to consult the actual report and relevant guidelines to conduct a fair and accurate assessment.

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Discuss whether or not growth of an industry will increase the profit earned by the firms in the industry.

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Answer: Definitely, the larger the market, the larger the demand, the higher the profit. In some cases where the market is large, the producers may not meet up on some occasions, this make other producers to actually increase their profit margin based on they have to increase production.

Explanation:

Industries have their various activities, competition, customers (both prospective and existing). A growth in industry would mean that there is a larger demand for what is been sold in that industry, and when the demand is high, their would be lack, which would create that gap and allow marketers or producers get more profit, based on the high demand now. Definitely, the larger the market, the larger the demand, the higher the profit. In some cases where the market is large, the producers may not meet up on some occasions, this make other producers to actually increase their profit margin based on they have to increase production.

A trader bought motor vehicle costing ksh 3000000 on 1st january 2018 on april 1st 2020 he bought another costing 1000000. The business calculates depreciation on motor vehicle at the rate of 25% on cost per annum. Required a depreciation and provision for depreciation account

Answers

The total depreciation for the two motor vehicles would be Ksh 2,562,500, and the provision for the depreciation account would be credited with this amount.

Depreciation is the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors. In this scenario, the trader bought a motor vehicle worth Ksh 3,000,000 on January 1, 2018, and another worth Ksh 1,000,000 on April 1, 2020. The business calculates depreciation on motor vehicles at the rate of 25% on the cost per annum.

To calculate the depreciation for each motor vehicle, we need to multiply its cost by the depreciation rate of 25% per annum. For the first motor vehicle, the depreciation for 2018 would be Ksh 750,000 (25% of Ksh 3,000,000), and for 2019 it would be another Ksh 750,000. For 2020, the depreciation would be Ksh 750,000 plus an additional Ksh 562,500 (25% of Ksh 2,250,000, which is the remaining cost of the vehicle after two years of depreciation). Therefore, the total depreciation for the first motor vehicle would be Ksh 2,062,500.

Similarly, for the second motor vehicle, the depreciation for 2020 would be Ksh 250,000 (25% of Ksh 1,000,000), and for 2021 it would be another Ksh 250,000. Therefore, the total depreciation for the second motor vehicle would be Ksh 500,000.

To create a provision for a depreciation account, we need to debit the depreciation expense and credit the provision for a depreciation account. This will ensure that the value of the motor vehicles on the balance sheet reflects their current value after considering the depreciation. The provision for the depreciation account will be a contra-asset account, which means it will be subtracted from the total value of the motor vehicles to arrive at the net book value.

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a minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer is a ________.

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A minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer is a qualifying score or cutoff score.

A qualifying score is a predetermined threshold set by an organization to determine whether an individual has met the required performance level to proceed in a selection process or be considered for a job offer. It serves as a criterion for making decisions on candidate advancement or eligibility.

The purpose of a qualifying score is to ensure that candidates possess the necessary knowledge, skills, or competencies needed for the next stage of the assessment process or for the job itself. It helps organizations filter and select candidates who have demonstrated a certain level of proficiency or suitability for further consideration or employment.

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How important is money

Answers

Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

What features should you present when demonstrating 2023 leaf’s maneuverability and parking assistance?.

Answers

The features to the demonstrated in 2023 leaf’s maneuverability and parking assistance includes:

Rear Sonar SystemElectric power-assisted steering

What is the maneuverability and parking assistance?

This is a vehicle features that facilitates easy direction and parking by the driver.

Therefore, the features to the demonstrated in 2023 leaf’s maneuverability and parking assistance includes the Rear Sonar System and Electric power-assisted steering.

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Lack of downtime negative or positive

Answers

negative is the right answer

how do you manage scarce resources?​

Answers

By setting the rations ahead of time and sticking to the intended plan as best as possible. Understand your limits to know how to measure the resources.

A consumer products company has already reviewed its objectives and capabilities, established the screening criteria for reviewing potential foreign markets, and examined a series of environmental factors for the markets in which it plans to operate. What should the company do next as it proceeds with the international planning process

Answers

The international planning process is a measure used by companies that wish to expand their businesses to other countries. After the first stage of analyzing and screening the new market, the consumer products company should move to the next phase which is;

Evaluating the marketing mix to target markets.

There are 4 phases in the international planning process which include; analysis and screening, adoption of the correct market mix, development of a marketing plan, and implementation/control.

For the consumer products company above that has established the screening criteria, they must ensure that they adopt the right market mix that will suit the organization.

This means that the product, place, price, and promotion should be right.

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Suppose a monopolist produces in a market with two distinct segments: market 1 (M1) and market 2 (M2). The firm faces a marginal cost and average cost equal to $20. Price ($) 5105750945546579858f0SU120 Quantity a. What is the profit in market 1? b. What is the profit in market 2? c. In which market is demand more elastic? (Click to select)

Answers

a. Profit in market 1 is $1600.

b. Profit in market 2 is $900.

c. Demand is more elastic in market 2.

How to analyze monopolist profits and demand?

a. To determine the profit in market 1, we need to know the demand and marginal revenue functions for that market.

Let's assume that the demand function for market 1 is

                     Q1 = 100 - P1

and the demand function for market 2 is

                     Q2 = 80 - P2,

where P1 and P2 are the prices in each market.

The monopolist's total revenue function is:

                     TR = P1Q1 + P2Q2.

The marginal revenue in market 1 is

                     MR1 = 100 - 2Q1,

and the monopolist's profit-maximizing quantity is found by equating MR1 to marginal cost (MC = $20):

                   100 - 2Q1 = 20

                              Q1 = 40

Plugging this into the demand function, we find:

                         P1 = 60

Thus, the profit in market 1 is:

                  π1 = (P1 - MC)Q1 = (60 - 20) x 40 = $1600

b. To determine the profit in market 2, we need to repeat the same analysis.

The marginal revenue in market 2 is:

                         MR2 = 80 - 2Q2,

and the monopolist's profit-maximizing quantity is found by equating MR2 to marginal cost (MC = $20):

                         80 - 2Q2 = 20

                                   Q2 = 30

Plugging this into the demand function, we find

                                    P2 = 50

Thus, the profit in market 2 is:

             π2 = (P2 - MC)Q2 = (50 - 20) x 30 = $900

c. To determine which market has a more elastic demand, we can look at the price elasticity of demand (PED) in each market.

The formula for PED is:

             PED = (%ΔQ / %ΔP) x (P / Q)

Using the demand functions,

we can find the PED for each market:

                   PED1 = (dQ1/dP1) x (P1/Q1) = -1 x (60/60) = -1

              PED2 = (dQ2/dP2) x (P2/Q2) = -1 x (50/30) = -1.67

Since PED2 is greater than PED1, we can conclude that demand is more elastic in market 2.

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Rank the following three stocks by their risk- return relationship, best to worst. Night Ryder has an average return of 33 per-cent and standard deviation of 40 percent. The average return and standard deviation of Whole Mart are 10 percent and 20 percent; and of Fruit Fly are 19 percent and 33 percent.

Answers

Based on the information provided, the risk-return relationship of the three stocks can be ranked as follows, from best to worst: 1. Whole Mart; 2. Fruit Fly; 3. Night Ryder.

With an average return of 10 percent and a standard deviation of 20 percent, Whole Mart is the least risky of the three stocks. While the returns are not as high as Night Ryder or Fruit Fly, the lower standard deviation indicates that the returns are more consistent and predictable.

Fruit Fly has a higher average return of 19 percent, but also a higher standard deviation of 33 percent. This indicates that while the potential returns may be higher, there is also a higher level of risk associated with investing in Fruit Fly.

While Night Ryder has the highest average return of 33 percent, it also has the highest standard deviation of 40 percent. This indicates that investing in Night Ryder comes with the highest level of risk and potential volatility. While the returns may be attractive, the risk may not be suitable for all investors.

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A new parent-focused website is adding a blog to attract readers. Which of the following elements are likely to be discussed at the project plan approval meeting?

a.)
The editing guidelines document for the new blog

b.)
Preferred methods for communicating schedule changes

c.)
A list of topics that will be covered each week in the new blog

d.)
A review of the number of days assigned to testing the changes to the website

Answers

Answer: d

Explanation: :()

Which is an example of an accounting function for a business?
1.) Designing print advertisements
2.) Preparing a balance sheet
3.) Hiring employees
4.) Testing computer software

Answers

3.)Hiring employees
Number 3 is the correct awser

A company that produces and sells laptops has a weekly profit described by the function P(x) where x is the number of laptops produced and P(x) is given in hundreds of dollars. They determined their marginal profit for producing and selling 50 laptops was 3
Interpret this number in the context of the problem.
When the company produces and sells the______laptop it will____ $___in____

Answers

The company should produce and sell 416 laptops weekly to maximize its weekly profit.

The given computing company's weekly profit function isP(x) = -0.007x³ – 0.1x² + 500x – 700. The number of laptops produced and sold weekly is x units. To maximize the weekly profit of the company, we need to find the value of x at which the profit function P(x) attains its maximum value.

Now, differentiate the given function, we get:P′(x) = (-0.007) * 3x² – 0.1 * 2x + 500= -0.021x² – 0.2x + 500To find the value of x, we set P′(x) = 0 and solve for x.

So,-0.021x² – 0.2x + 500 = 0

Multiplying both sides by -1, we get0.021x² + 0.2x - 500 = 0.

To solve this quadratic equation, we can use the quadratic formula: x = (-b ± √(b² - 4ac)) / 2a where a = 0.021, b = 0.2, and c = -500

Substituting the values of a, b, and c in the above formula, we get: x = (-0.2 ± √(0.2² - 4 * 0.021 * (-500))) / 2 * 0.021≈ 416.1 or -2385.7

Since the number of laptops produced and sold cannot be negative, we take the positive root x = 416.1 (approx.) as the required value.

Therefore, the company should produce and sell 416 laptops weekly to maximize its weekly profit.

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What is the name given to numbers in a bar chart?

Answers

The scale refers to the values on a horizontal bar chart's x-axis or the y-axis in a vertical bar chart.

What do you mean by bar chart?

In bar charts, class intervals are often used to group together discrete, continuous, or categorical data. They consist of an axis and a set of indicated horizontal or vertical bars.

The bars display either the different values of the variable themselves or their frequency distributions. Bar charts should be used to show different parts of the data.

Vertical bar charts can be helpful for comparing multiple categories of discrete data, such as age groups, classes, and schools, if there aren't too many to compare. They are also very useful for time series data.

The x-axis is ideal for years, minutes, hours, or months despite having minimal capacity for labeling.

A tool for comparing data sets on the same locations or items is the grouped bar chart.

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What is the difference between margin account vs cash account?

Answers

The difference between margin account vs cash account is of Trading Capabilities, Risk and Requirements.

Here are the main differences between the two:

Trading Capabilities:

Cash accounts, In a cash account, you can only trade with the money you have deposited into the account. You cannot borrow funds from the broker to make trades.

Margin accounts, In a margin account, you can borrow money from your broker to purchase securities. This means you can buy more shares than you would be able to with just the cash in your account.

Risk:

Cash accounts, Trading in a cash account is considered less risky because you can only use the funds you have deposited. You cannot lose more money than you have in the account.

Margin accounts, Trading in a margin account can be riskier because you can borrow money from the broker. This means that losses can exceed the amount of cash in your account, and you can end up owing your broker money if your trades go against you.

Requirements:

Cash accounts, To open a cash account, you only need to deposit the minimum amount required by the broker.

Margin accounts, To open a margin account, you need to meet the broker's minimum requirements, which typically include a certain amount of cash and securities in your account, and you must also agree to the terms and conditions of the margin account.

In summary, the key difference between a margin account and a cash account is the ability to borrow funds from the broker to make trades. Margin accounts allow you to take on more risk and potentially make larger gains, but they also come with the risk of losing more money than you have in the account. Cash accounts are considered less risky, but you have limited trading capabilities since you can only use the cash you have deposited in the account.

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Question 1 of 10
An investment that you bought for
profit
and sold for
made a

500;600
500;400
600;400
600;500

Answers

Answer:

500;600

an investment

Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75% equity. The CFO believes the firm should use more debt, but the CEO is reluctant to increase the debt ratio. The risk-free rate, r RF, is 5.0%, the market risk premium, RP M, is 6.0%, and the firm's tax rate is 25%. Currently, the cost of equity, r s, is 11.5% as determined by the CAPM. What would be the estimated cost of equity if the firm used 60% debt? (Hint: You must first find the current beta and then the unlevered beta to solve the problem.)

Answers

Answer:

17.74%

Explanation:

Calculation to determine What would be the estimated cost of equity

First step is to calculate the Original beta using this formula

Original beta = (rs-rRf)/ RPM

Let plug in the formula

Original beta = 11.5%- 5%

Original beta = 6.5%/ 6%

Original beta = 1.083

Second step is to calculate original D/E using this formula

original D/E= D/A / (1-D/A)

Let plug in the formula

original D/E = .25/ (1-.25%)

original D/E = .333

Third step is to calculate Unlevered Beta using this formula

Unlevered Beta= Bu = Bl / 1+((1- Tax rate) x (D/E)

Let plug in the formula

Unlevered Beta= 1.083/1+((1-.25) x .333

(D/E) =1.083/1+(0.75*.333)

(D/E) =1.083/1+.24975

(D/E) =1.083/1.24975

(D/E)=0.87

Fourth Step is to calculate the Target D/e

Target D/e = .6/.25

Target D/e = 2.4

Fifth step is to calculate the New Beta using this formula

New Beta = bu* (1+(D/E)(1- tax rate)

Let plug in the formula

New Beta= .87 *(1+(2.4)*(.6)

New Beta= .87 *(1+1.44)

New Beta= .87 *2.44

New Beta=2.1228

Now let calculate the estimated cost of equity using this formula

rs = rRF + new beta (RPm)

Let plug in the formula

rs= 5% + 2.1228*6

rs= 17.74%

Therefore the estimated cost of equity will be 17.74%

A stock has an expected return of 17 percent, its beta is 1.35, and the risk-free rate is 4 percent. What must the expected return on the market be?

Answers

The expected return on the market must be 16.65 percent.

To calculate the expected return on the market, we can use the Capital Asset Pricing Model (CAPM), which relates the expected return of an asset to its beta and the expected return on the market. The formula for CAPM is as follows:

Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)

In this case, we are given the following information:

Expected return of the stock = 17 percent

Beta of the stock = 1.35

Risk-free rate = 4 percent

Plugging in the given values into the CAPM formula, we can solve for the expected return on the market:

17% = 4% + 1.35 * (Market Return - 4%)

13% = 1.35 * (Market Return - 4%)

(Market Return - 4%) = 13% / 1.35

Market Return - 4% = 9.63%

Market Return = 9.63% + 4%

Market Return = 13.63%

Therefore, the expected return on the market must be 13.63 percent.

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In macroeconomics, a _______________ describes the common way in which market values are measured in an economy.

Answers

Answer:

unit of account that is your answer

solely based on his position as owner of barcelona restaurants, andy has a.legitimate power. b.coercive power. c.referent power. power.

Answers

Based on his position as the owner of Barcelona Restaurants, Andy has legitimate power.Legitimate power is derived from an individual's position or role within an organization or social structure.

this case, Andy's power is derived from being the owner of Barcelona Restaurants. Legitimate power is typically associated with authority and the right to make decisions and give directives based on the position held. As the owner, Andy has the legitimate power to set policies, make business decisions, and exert control over the restaurant's operations and employees. It is important to note that legitimate power should be exercised responsibly and in line with ethical principles to maintain a positive and productive work environment.

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Question 38
Which of these might be a reason for a country to join the European Union?
o Having less trade restrictions with member countries
o Losing autonomy/self governance
o Paying money that goes to poorer countries
o Bureaucracy of the EU
Question 39
Puerto Rico used to be a French colony
True
False

Answers

Question 38: One of the reasons for a country to join the European Union might be having less trade restrictions with member countries. By joining the EU, countries can benefit from the elimination of tariffs and trade barriers, facilitating trade among member states.

Question 39: False. Puerto Rico was never a French colony. It was, in fact, a Spanish colony until it was ceded to the United States in 1898 as a result of the Spanish-American War.


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_____ is a mechanism for gathering information about performance deficiencies as they occur. a. Feedback control b. Concurrent control c. Proactive control d. Feedforward control

Answers

Answer:

A. Feedback control

Explanation:

The auditor must consider audit evidence from three sources: 1) Evidence obtained directly by the auditor 2) Evidence obtained from third parties (sources outside the entity) 3) Evidence obtained from the client. YOU ARE REQUIRED TO Discuss the above sources of evidence in terms of their reliability from the auditor's perspective.

Answers

As an auditor, there are three main sources of audit evidence: evidence obtained directly by the auditor, evidence obtained from third parties (external sources), and evidence obtained from the client. Each source has its own level of reliability from the auditor's perspective.

The most reliable source of evidence for an auditor is typically the evidence obtained directly by the auditor. This includes information and documentation that the auditor personally examines, tests, and verifies.

Directly obtained evidence allows the auditor to have direct control over the collection process and enables them to assess its reliability and relevance to the audit objectives. This type of evidence is considered more reliable because it is obtained through the auditor's independent and objective evaluation.

Evidence obtained from third parties, such as external experts, legal documents, or confirmations from banks or suppliers, can also be highly reliable. Third-party evidence is obtained from sources outside the entity being audited and is considered more independent and objective.

However, the auditor needs to exercise professional skepticism and evaluate the reliability and authenticity of the information obtained from these sources, considering factors such as the reputation and credibility of the third party.

Evidence obtained from the client, including client-provided documents, records, and explanations, is generally considered less reliable compared to the other two sources. This is because the evidence obtained from the client may be subject to bias or manipulation.

The auditor needs to carefully assess the reliability and consistency of the information provided by the client and corroborate it with other sources of evidence to mitigate the risk of potential misstatement or misrepresentation.

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Name two things other than the 5 C’s that can affect pricing

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Name two things other than the 5 c’s that can affect pricing?

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