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- 4. Differentiate between compromise and accommodating. For what circumstances each of them is best fitted (explain separately)?Explain what is meant by an imprest payroll account. What is itspurpose as a control over payroll?What major considerations should the auditor take into accountin determining how extensive the review of subsequent events should be?
- After spending several weeks on the job, Suhana was surprised to discover that her father had not formally evaluated anyemployee's performance for all the years that he had owned the business. Her father, Sanjeev's position was that he had"a hundred higher-priority things to attend to," such as boosting sales and lowering costs, and, in any case, manyemployees didn't stick around long enough to be appraisable anyway. Furthermore, contended Sanjeev, manual workers such as those doing the pressing and the cleaning did periodically getpositive feedback in terms of praise from Sanjeev for a job well done, or criticism, also from Sanjeev, if things did not lookright during one of his swings through the stores. Similarly, Sanjeev was never shy about telling his managers about storeproblems so that they, too, got some feedback on where they stood.This informal feedback notwithstanding, Suhana believes that a more formal appraisal approach is required. She believesthat there are criteria such…Explain what is 3E and what do they consist ofSuppose you work for a well-known local restaurant, and a friend ofyours is an account representative for a supplier of restaurant equipment. You know the restaurant owner is considering upgradingsome of the kitchen equipment. Although you have no purchasingauthority, your friend has asked you to arrange a meeting with therestaurant owner. You have heard unflattering rumors about thissupplier’s customer service.1. Would you arrange the meeting between your friend andyour boss?2. Would you mention the customer service rumors either toyour friend or your boss?3. Would you try to influence the purchase decision in eitherdirection
- What do the statement mean?How should CPA's evaluate risks to integrity and objectivity when considering providing gifts to audit clients and/or client management or accepting risks from them?Implications for Management Why are both sets of information important to management? For what purposes would one set be more important than the other?