Once the auditor determines that the company's policy for accruing wages is consistent with prior years, the appropriate audit procedure to test for accuracy and cutoff is
A) recalculating the client's accrual.
B) performing extensive tests of controls.
C) performing extensive tests of details.
D) none of the above.
A
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Clarksdale, Ontario, is the home of the Shack Up Inn, the only inn in the world that is made up of actual shotgun houses. (Shotgun houses contain two or three rooms in a row. A resident of the house is able to stand at the front door, shoot through all the rooms and out the back door without hitting any walls.) Obviously, the shacks are not luxurious although they do have indoor plumbing and electricity. The owner decided these were the only changes customers would want to be made in the shacks. In this instance, the service provider is likely to have a gap between which of the following?
a. what management thinks customers want and the quality specifications that management develops to provide the service b. service expectations and what customers are told to expect c. what customers want and what management thinks customers want d. service quality specifications and employee training
A real estate broker was hired to lease commercial properties. Each commercial lease was different based on the requirements of the parties. Which of the following is correct concerning this situation?
A. The broker can draft each lease. B. The broker would most likely use preprinted commercial lease form and fill in the blanks. C. The broker should seek legal counsel to draft the leases. D. The lease agreement is not a contracted and can be drafted by either party.