All of the following provide constructive notice, except:
a. telephone poles across a property.
b. knowledge of an unrecorded deed to a stranger.
c. a recorded deed to a stranger.
d. a stranger in possession of a property.
Answer: b. knowledge of an unrecorded deed to a stranger.
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Under the weighted-average method for inventory costing, the cost per unit is determined by ________
A) dividing the cost of goods available for sale by the number of units available B) dividing the cost of goods available for sale by the number of units in beginning inventory C) multiplying the number of units purchased with the weighted-average cost D) multiplying the cost of goods available for sale by the ending weighted-average cost of the previous accounting period
Which of the following actions should be taken by a CPA who has been asked to audit the financial statements of a company whose fiscal year has ended?
A. Discuss with the client the possibility of an adverse opinion because of the late engagement date. B. Ascertain whether circumstances are likely to permit the auditor to obtain sufficient appropriate evidence and express an unmodified opinion. C. Inform the client of the need to express a qualified opinion if the physical inventory has already been taken. D. Ascertain whether an understanding of internal control can be obtained and the risks of material misstatement can be assessed after completion of the audit.