Other than inquiring of management about policies they have established to prevent illegal acts and whether management knows of any laws or regulations that the company has violated, the auditor should not search for illegal acts that do not have a
direct effect on the financial statements unless there is reason to believe they may exist.
Indicate whether the statement is true or false
TRUE
Business
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Which of the following changes in working capital is least likely, given an increase in the overall level of sales?
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Flamingo, Inc has the following budgeted figures
Jan Feb Mar April Sales $50,200 $67,000 $84,000 $95,000 Cost of goods sold 60% of sales Required ending inventory $10,000 + 25% of next month's sales Inventory on hand on Jan 1 $27,500 Calculate cost of goods sold for the month of February. A) $16,750 B) $30,120 C) $29,370 D) $40,200
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