What is Normal spoilage?

Q: What are the other alternatives eliminated by the method of payback screening method?

A: Following are the other alternatives eliminated by the method of payback screening method: The…

Q: What is the effect of a Significant Deficiency? What is it?

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: What is a Material Weakness?

A: Material Weakness: Material weakness is the often the result of deficiencies in one or more of a…

Q: What determines the acceptable level of Detection Risk?

A: Detection Risk:   It is a chance that an auditor will fail to identify any material misstatement…

Q: WHAT DOES BREAK-EVEN ANALYSIS EXPLAIN?

A: Break Even - Break even is the level of sales wherein the total cost = Total revenue, in simple…

Q: Why is it crucial to estimate the MARR correctly?

A: It is the minimum return rate on the project which an entity computes prior to the staring of the…

Q: What items could increase the risk of material misstatement?

A: Risk of material misstatement (ROMM) is a risk that the financial statements when audited will…

Q: what is control risk

A:

Q: What can be understood by abnormal return?

A: Note firstly we understand what is meaning of abnormal return. Basic meaning of abnormal return is…

Q: What is Sampling Risk?

A:

Q: Describe the method of Payback Screening?

A: Answer: The company has several investment opportunities. It is vital that you opt for the right…

Q: What must occur if a Significant Deficiency is identified?

A: Definition:   Internal control: Internal control is a process which ensures continuous reliability…

Q: “Costs of abnormal spoilage are losses.”Explain.

A: Abnormal spoilage is spoilage that is not inherent in a specific production process and will not…

Q: What are the appealing qualities of Payback Screening?

A: The payback method is the simplest way of checking the viability of the project. The payback method…

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: What is Non-Sampling Risk?

A: Sampling: It is a procedure used by the auditor to analyze the predetermined number of observations…

Q: What is event risk?

A: Event risk is the likelihood of a sudden event adversely affecting an organization, industry, or…

Q: What are the Flaws of Payback Screening?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Why is the additional risk not taken without expected additional return?

A: The risk-return tradeoff takes note of that the potential return increments with an expansion in…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

Q: How is sampling risk controlled?

A: Sampling: Sampling allows an individual obtain the information about the population of interest in…

Q: Should VAS be completely replaced by IFRS? Why/ Why not?

A: IFRS stands for International Financial Standards where as VAS stands for Vietnamese Accounting…

Q: “Normal spoilage is planned spoilage.”Discuss.

A:

Q: Is funding a type of risk?

A: Funding means providing the funds to the party and charging interest rates from them. Firms need…

Q: What is the meaning of incoterms

A: International chamber of commerce is the supervisor of international trading, and try to provide…

Q: “What has been regarded as normal spoilage in the past is not necessarily acceptable as normal…

A: Spoilage:   Spoilage is the defective item in an intermediate or final stage. The spoilage goods…

Q: How do the passive losses rules and the at risk rules work in conjunction to limit losses?

A: Passive losses: These are the losses that take place when expenses exceed the income in the passive…

Q: What do "threat," "vulnerability," and "risk" really mean?

A: Threat : A declaration of purpose to cause someone pain, harm, damage, or other hostile action as…

Q: What should occur when a low level of Detection Risk is acceptable?

A: Detection risk is the risk that procedures performed to reduce audit risk will not detect a material…

Q: what is the difference between BL and TB models?

A: BL model stands for Black-Litterman model, which is a technique that is used to create investment…

Q: What is the payback screening?

A: Payback method: Payback period is the expected time period which is required to recover the cost of…

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: How do you know to select the correct incoterm?

A: Meaning of incoterm:Incoterm or Inter Commercial Terms are nothing but set of pre-defined rules and…

Q: What is the tainting percentage? How is it calculated?

A:

Q: What is sensitive analysis?

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

Q: How can spooling present an added exposure?

A:

Q: Risk of material misstatements increases if

A: Please see the next step for the solution

Q: What does Unbundling entail reducing?

A: Unbundling is the process of selling, changing, or cutting assets, product lines, divisions, or…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: What is the risk of assessing Control Risk too high?

A: Control risk refers to the probability of financial statements that were considered wrongly stated…

Q: What advantage does scenario analysis have over sensitivityanalysis?

A: In finance, we are required to analyze the change in value of one variable over the change in the…

Q: “Units of abnormal spoilage are inferred rather than identified.”Explain.

A: Spoilage:Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot be…

Q: How is the tainting percentage calculated?

A: Tainting percentage can be computed individually for each sampled item. In PPS sampling, the amount…

Q: Why is it important to remember that payback screening is not an end in itself?

A: The payback period is defined as a number of years takes by a project to recover the initial cost of…