What does the DuPont identity tell us that ROE is affected by?

Q: What does the Good internal control helps ensure?

A:

Q: Why is it important to complement intuition with systematic study?

A: Organizational behaviour is the study of understanding how people behave within groups. The…

Q: What are the key limitations of an internal control system?

A: Internal Control: A mechanism to maintain the goals of an entity in terms of organizational…

Q: What is the relationship between ARIA and ARO for tests ofcontrols?

A: Auditing: Auditing refers to an independent examination of financial information of any…

Q: Distinguish between inherent risk and control risk. How do internal controls affect inherent risk…

A: Audit Risk: The risk of issuing an unqualified audit report due to failure in detecting material…

Q: what are the conditions for classical immunization to be not effective?

A: Classical Immunization:- Classical immunization can be characterized as the formation of a fixed-pay…

Q: When is independence impaired under PCAOB standards?

A: Independence would be considered to be impaired if a covered member accepts more than a token gift…

Q: how does communication aid in assessing inherent risk, control risk and detection risk

A: Factors of Communication aid in Assessing Inherent Risk, Control Risk and detection Risk There are…

Q: Why was EDI devised?

A: EDI: EDI or Electronic data interchange refers to as a system designed to share encrypted…

Q: What is privacy in the context of information security? Is perception of privacy the same for all…

A: In the context of information security, what exactly is privacy? Is there a difference in the sense…

Q: Give an explanation about this statement: Why does control or internal control fails?

A: Internal control refers to the process of implementing and exercising the various mechanisms, rules,…

Q: What are the characteristics of Substantive Tests?

A: Audit Planning: Audit planning is the first step in the auditing process. Auditor gathers all the…

Q: What is IT auditing?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: What is the risk of Incorrect Acceptance?

A: Risk of incorrect acceptance: The risk that the sample selected by the auditor may show that there…

Q: What is a Control Deficiency?

A:

Q: Who were Modigliani and Miller (MM), and whatassumptions are embedded in the MM and Millermodels?

A: Introduction: Capital structure relates to financing of the overall activities and development of a…

Q: Why are these coming up as wrong?

A: Step 1 Journal is the part of book keeping. In this Interest is due or outstanding at market rate…

Q: What is the heart of ERP system?

A: Given: The element at the heart of the ERP is asked.

Q: How is the term "confidentiality" different from "privacy"? Explain.

A: Answer: The terms Confidentiality and Privacy are different terms. Privacy is all about person and…

Q: what are the difference between Preventive Controls and Detective Controls?

A: Financial Reporting control activities are imposed on the accounting standard for the purpose of…

Q: What is sensitive analysis?

A: Sensitive analysis is a method for predicting the outcome of a decision if a situation turns…

Q: What is immunized?

A: Immunization is concept which states that the change in interest rates will not affect the value of…

Q: What is the iceberg effect? How can CASE tools help to minimize this phenomenon?

A: The Iceberg Principle or Iceberg Theory is a hypothesis that proposes that we can't see or recognize…

Q: What is internal control?

A: Internal controls are policies incorporated by the Management to safeguard the assets of the…

Q: How does the source of evidence affect its reliability?

A:

Q: What is the concept of reasonable assurance? What are the key limitations of an internal…

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Q: What is Roll’s critique of CAPM tests?

A: Capital asset pricing model is a model that is used to estimate the expected return on an asset. In…

Q: What is the relationship between Evidence and Detection Risk?

A: Detection risk is the risk that an auditor will not find a material misstatement in a client's…

Q: What is the internal control principle?

A: Internal control means to control and check everything related to management. It ensures that the…

Q: What is ROE, ROA, and The DuPont Formula?

A: Ratio analysis is a part of management accounting in which different types of ratios are determined…

Q: What factors led to the success of SafeSave?

A: The SafeSave payment services is an online platform that provides the facility for the payments for…

Q: What is underpricing? Why is it used? What evidence do we have to support the belief that…

A: Underpricing is a common term used in Initial public offering of shares of a private company which…

Q: How avoid Enron scandal? Explain.

A: The Enron scandal was an accounting scandal involving Enron Corporation. It is one of the biggest…

Q: What is conflict of interest?

A: Conflict of interest: Conflict of interest occurs when a person derives personal benefits by…

Q: How is the DuPont Model for ROE calculated?

A: Solution Note As per the Q&A guideline we are required to answer the first question only .…

Q: What are some limitations of internal controls?

A: