Which of the following best describes the primary reason an independent auditor reports on financial statements?
A) To give stockholders some assurance that any fraudulent activities will be detected.
B) To identify a poorly designed internal control structure that may produce unreliable financial statements.
C) To provide expertise to management, which may not be totally knowledgeable of prevailing GAAP.
D) To add credibility, where appropriate, since management may not be perceived as objective with respect to its own financial statements.
Answer: D) To add credibility, where appropriate, since management may not be perceived as objective with respect to its own financial statements.
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Brad's homeowners insurance excludes losses if there is a "material increase in hazard." After buying the policy, Brad started to make fireworks in the basement. A spark from a wood stove ignited some gunpowder, and the home burned to the ground. Which legal characteristic of insurance contracts may prevent Brad from collecting under his policy?
(a) conditional contracts (b) personal contracts (c) contracts of adhesion (d) aleatory contracts
Your Grade Point Average (GPA) does not have to be included on the résumé, or you can include just the GPA in your major field of study
Indicate whether the statement is true or false.c