All long-term care policies return premium paid if one does not file a claim with the insurance

In which of the following circumstances is an auditor most likely to rely on work done by internal auditors?

a. If financial statement amounts are material and the degree of subjectivity in evaluating the audit evidence is high b. If the internal auditors have concluded that the risk of material misstatement at the overall financial level is negligible c. For financial statement amounts judged by the auditor to require little or no subjectively evaluated audit evidence d. For financial statement amounts determined largely or entirely on the basis of estimates made by management

Rover Corporation is a regular corporation that has not elected S corporation status. In 1994,

Rover earns $100,000; in 1995, Rover distributes $50,000 to its shareholders. Which of the following best describes the tax consequences to Rover and its shareholders? A) Rover is taxed on $100,000 in 1994; the shareholders are not subject to tax B) The shareholders are taxed on $100,000 in 1994; Rover is not subject to tax C) Rover is taxed on $100,000 in 1994; the shareholders are taxed on $50,000 in 1994 D) Rover is taxed on $100,000 in 1994; the shareholders are taxed on $50,000 in 1995 E) Neither Rover nor its shareholders are subject to tax.