ph.instructure.comC Home Chegg.com G Grammarly Viu C Home- CanvaOStudent Far Easter...NetflixDashboard0.0 Duolingo - The wor...esiseclolShelly is an internal audit manager of Air Clean and Safe Express, Inc. a publicly listed company, which provides general air conditionercleaning and maintenance services to its industrial and residential customers. This will be the first time that the company will be audited.Thus, Shelly does not have any previous working file to review. Shelly recently conducted a preliminary interview with Mr. Norvs Gorgeous,who along with his sister, Ms. May Gorgeous owns the company.Interview with Auditee (Independent Situation)Shelly: That should about do it for now, until I can get in to do some preliminary audit investigation. But before I leave, l'd like to ask you afew more general questions. To start with, can you tell me what you feel is responsible for the company's recent success?Norvs: Well, Shelly, because our company uses the latest technology when it comes to cleaning air conditioning units compared to thetraditional methods used by our competitors. Our customers can tell the difference. Further, May and I understand the business well, andwe pride ourselves on doing good work.Shelly: Are you satished with the processing of trade receivables?Norvs: Yes, defınitely. Red, our general manager, is meticulous in his clerical operations, which is well systematized. He has excellentcontrol over the trade receivables. In fact, it's been over a year and a half since the bank accepted a list of pledged receivables as securityfor a loan. From then on, we've had access to a continually renewable loan based on a list that's updated weekly. The loan is relativelysmall, and the contract allows the bank to access the company's checking account in the unlikely event that collection of the loan seemsdoubtful.Perhaps I should add that although May and I have no formal accounting training and we have given Red full responsibility for theaccounting duties, May and I are the only people allowed to sign company checks.Which of the following statements is/are true?Statement I. Norvs and May are commilted for a level needed for particular skills and translate the desired levels of competence intorequisite knowledge and skills.Statement II. Norvs and Mays lack of formal accounting training is compensated by the full responsibility provided to Red their generalmanager.checks is a faulty.control. traditional methods used by our competitors. Our customers can tell the difference. Further, May and I understand the business well, andwe pride ourselves on doing good work.Shelly: Are you satisfied with the processing of trade receivables?Norvs: Yes, definitely. Red, our general manager, is meticulous in his clerical operations, which is well systematized. He has excellentcontrol over the trade receivables. In fact, it's been over a year and a half since the bank accepted a list of pledged receivables as securityfor a loan. From then on, we've had access to a continually renewable loan based on a list that's updated weekly. The loan is relativelysmall, and the contract allows the bank to access the company's checking account in the unlikely event that collection of the loan seemsdoubtful.Perhaps I should add that although May and I have no formal accounting training and we have given Red full responsibility for theaccounting duties, May and I are the only people allowed to sign company checks.Which of the following statements is/are true?Statement I. Norvs and May are committed for a level needed for particular skills and translate the desired levels of competence intorequisite knowledge and skills.Statement II. Norvs and May's lack of formal accounting training is compensated by the full responsibility provided to Red their generalmanager.Statement IlI. Norvs and May being the people allowed to sign company checks is a faulty control.O Statement IIl onlyO Statement I onlyO Statements I and IIStatement I and IlII

Question

Accepted Answer

The following Statement are True:
Statement I and II