Compliance with nondiscrimination rules can be achieved by way of two methods. Which are the two methods?
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Compliance with nondiscrimination rules can be achieved by way of two methods. Which are the two methods?
Safe harbor and voluntary annual DOL audit
Safe harbor and nondiscrimination testing
Voluntary annual DOL audit and nondiscrimination testing
Nondiscrimination testing and matching contributions to all participants
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- Testing is an important phase in SDLC. Can we ignore this phase by using formalmethods? Briefly explain the importance of testing in the light of formal methods.Evaluate the following statement: “In many audits in whichaccounts receivable is material, the requirement of confirming customer balances is awaste of time and would not be performed by competent auditors if it were not requiredby auditing standards. When internal controls are excellent and there are a large numberof small receivables from customers who do not recognize the function of confirmation,it is a meaningless procedure. Examples include well-run utilities and retail stores.In these situations, tests of controls and substantive tests of transactions are far moreeffective than confirmations.”When performing sales mix analysis , which one of the following is false : a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point b. Making changes to the sales mix will likely cause a change in the breakeven point c. The sales mix is usually assumed to be remain the same . d. Shifting the sales mix to the product with a lower contribution margin will likely ncrease the overall contribution margin e. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product
- Which one of the following situations would lend itself well to event modeling? rev: 09_13_2018_QC_CS-137066 Multiple Choice The product’s sales fluctuate very little throughout the year. The product has many SKUs. The product is subject to scheduled promotions. The product is new.A. Being a consumer of cookies, what are the qualities do you consider before buying the cookies at hypermarket? B. What will be the role of quality control inspector in this production process of cookies? Briefly explain. C. A small percentage of cookies is stored temporarily in the company’s warehouse, but they must be shipped shortly because of their limited shelf life due to not using preservatives. Based on this statement, what are the advantages and limitations associated with not using preservatives in cookies by Lew-Mark?The auditor’s tests of controls revealed that required approvals of cash disbursementswere absent for a large number of sample transactions examined. Which of thefollowing is least likely to be the appropriate auditor response?(1) The auditor will communicate the deficiency to those charged with governance.(2) The auditor will increase the planned detection risk.(3) The auditor will not select more sample items to audit.(4) The auditor will perform more extensive substantive tests surrounding cash disbursements.
- Coronado Company gathered the following data about the three products that it produces: PresentProduct Estimated SalesValue beforeProcessing AdditionalProcessing Costs Estimated Salesif Processed Further A $8700 $5500 $16200 B 15500 5000 18200 C 10500 7600 15600 Which of the products should be processed further? Product A Product C Product B All three productsConsider the following additional information – R&D and selling expenses are substantially higher for Zderm because it is a new product. Jim has strongly supported development of the new product, including the high selling and R&D expenses. He has assured the Board of Directors that the Zderminvestment will pay off in improved profits for the firm. Discuss the ethical issues, if any, facing Jim as he reports to top management on the profitability of the firm’s two products.What can be said of the correlation between the brand of an automobile and its quality? a. The correlation is positive, because better brands have higher quality. b. The correlation is negative, because smaller cars tend to have higher quality and larger cars tend to have lower quality. c. If the correlation is negative, an arithmetic mistake was made; correlation must be positive. d. Correlation makes no sense here, because brand is a categorical variable.
- Bashaer is a millionaire but always buy a TOYOTA ACCORD even though he can afford Mercedes Benz sports car. Nayef on the other hand cannot afford to buy BMW, but he made a bank loan to purchase the BMW Coupé for half a million dollars. Explain why they choose those cars by describing through the Customer’s Lifetime Value (CLV) Assessments. Explain the importance of the Customer Profile Components of Nayef and Bashaer.A company specifies that, at receiving inspection, a random sample equal to 10% of the lot size will be drawn and inspected. If one or more units are nonconforming, the remaining of the whole lot must be screened (100% inspected). The cost of screening is charged to the supplier. Supplier A ships in lots of 500 units; supplier B, in lots of 1,000 units. What is the probability of acceptance for each supplier if the lots contain 0.3% nonconforming product? Do you think the company’s sampling plan is fair to its suppliers? Why or why not?Lew Pherson and Vera Collier are friends whoare employed by different CPA firms. One day during lunch they are discussing theimportance of internal control in determining the amount of audit evidence requiredfor an engagement. Pherson expresses the view that internal control must be evaluatedcarefully in all companies, regardless of their size or whether they are publicly held,in a similar manner. His CPA firm requires a standard internal control questionnaireon every audit as well as a flowchart of every transaction area. In addition, he says thefirm requires a careful evaluation of the system and a modification in the evidenceaccumulated based on the controls and deficiencies in the system.Collier responds by saying she believes that internal control cannot be adequate inmany of the small companies she audits; therefore, she simply ignores internal controland acts under the assumption of inadequate controls. She goes on to say, “Why should Ispend a lot of time obtaining an…