# "Audits may be characterized as (a) financial statement audits, (b) compliance audits, or (c) operational audits"

Audit is an independent examination of records,financial statements or process in order to give report to the party that has commissioned the audit

Explanation:

Audit can be of the three types highlighted in the question.

Audit of financial statements involves an external auditor examining the financial statements of clients i.e the income statement,statement of financial position.the cash flow statement as well statement of changes in equity e.t.c with a view to expressing an opinion on whether the financial statements show a true and fair view of the performance of the organisation audited and sometimes whether they were prepared in line with generally accepted accounting standards such as US GAAP.

Compliance audit is simply to find out whether the person audited has conformed with certain laid down policies and procedures such as the policies to follow in granting credit facilities to bank customers.

Process audit is about examining a process to see if the steps taken by the person carrying the tasks are logical and to find out areas for improvement in order to cut down time and resources used.

## Related Questions

Wheeling Inc. uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the aging analysis equals \$5,900. At the end of the year, the balance of Accounts Receivable is \$109,000 and the unadjusted debit balance of the Allowance for Doubtful Accounts is \$680. Credit sales during the year totaled \$168,000. What is the estimated Bad Debt Expense for the current year

\$5,220

Explanation:

Given that

Estimated from ageing analysis = \$5,900

Unadjusted debit balance of the Allowance for Doubtful Accounts = \$680

The calculation of Bad Debt Expense is given below:-

The estimated Bad Debt Expense for the current year = Estimated from ageing analysis - Unadjusted debit balance of the Allowance for Doubtful Accounts

= \$5,900 - \$680

= \$5,220

Therefore for computing the bad debt expenses for the current year we simply applied the above formula.

Most states restrict the number of hospitals in a given geographic area under "Certificate of Need" (CON) laws. These laws require any new hospital facility to provide evidence that there is a demand for its facility that is not currently being met by the existing healthcare facilities in that geographic market. Identify the market inefficiency that these CON laws are trying to fix.

How does restricting the number of hospitals correct this inefficiency? Explain briefly.

Explanation:

The certificate of need, is a legal document in the United States that is required in many states and federal jurisdictions before proposed expansion, acquisitions, or the creations of healthcare facilities will be allowed.

a. The market inefficiencies which will be eliminated by the certificate of needs laws are that:

The absence of certificate of needs laws will have resulted in an unregulated market competition among the hospitals. This competition could result into medical providers over-investing in medical equipments and facilities. This will lead to an increase in the demand for the equipments which in turn, leads to rise in the equipments costs and the burden caused by the rise in price is shifted to the patients in form of high prices which could lead to exploitation.

b. Restricting the number of hospitals can correct this inefficiency because the laws will help reduce competition among the hospitals which will help reduce demand for healthcare equipments.

This will help in pushing the market toward equilibrium over time whereby healthcare delivery are more affordable to people.

Chris Taylor: Attempt 1Question 1 (2 points)
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Which of the following is one of four steps you might use to improve your thinking?
a) Be reasonable.
c) Be considerate and caring.
d) Avoid logic and reason.​

Be reasonable

Explanation:

Be reasonable where u use logic and strong motives which consequently improves your way of thinking

I hope that I answered u

The value of a listed call option on a stock is lower when: I. The exercise price is higher. II. The contract approaches maturity. III. The stock decreases in value. IV. A stock split occurs.

A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.

The correct option is a. I, II, and III only

Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.

The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.

The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.

To know more about the listed call option, refer to the link below:

brainly.com/question/4490636

Answer: a. I, II, and III only

Explanation:

The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.

As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.

The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.

Wolverine Company financial statements included the effects of these errors: Reported Net Income for Year 1 was \$20,000. Reported Net Income for Year 2 was \$18,000. Indicate the error in 12/31/2 Retained Earnings:

Net income year 2 = \$21,300

Explanation:

I looked for the missing information and found this:

Year            Depreciation overstated         Prepaid expense omitted

1                              \$2,500                                \$2,000

2                             \$4,000                                \$2,700

Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = \$18,000 + \$4,000 + \$2,000 - \$2,700 = \$21,300

Bohemian Company has 500,000 shares of no par common stock with a stated value of \$8 per share issued and outstanding as of January 1, originally issued for \$14 per share. During 2018, Bohemian Company had the following transactions involving its own stock: On March 6, acquired 27,965 shares of treasury stock at a cost of \$12 per share On April 18, resold 5,280 shares of treasury stock at \$19 per share. On June 11, resold an additional 2,210 shares of treasury stock at \$10 per share If Bohemian uses the cost method of accounting for treasury stock, what will be the balance in additional paid in capital from treasury stock as a result of these transactions?

\$32540

Explanation:

The balance in additional paid in capital treasury stock as a result of the transactions is \$32540.

The beginning balance was set at 0.

March 6 Acquisition in the treasury stock = 27965 shares × \$12

In additional paid capital it is 0.

April 6 Reissued in treasury stock = 5280 shares × \$12 while in additional paid capital = 5280 shares × \$7 (19-12).

Please kindly see attachment to see the step by step working and the answer.

Amount paid for the treasury stock on March 6 = \$12*27,965 = \$335,580

Total Amount realized on the resale of Treasury stock

April 18  =  5280*\$19 =                                                          \$100,320

June 11 =  2210*\$10 =                                                             \$ 22,100

\$122,420

cost of treasury stock sold

( \$12 * 7,490)                                                                             (89,880)

Balance in additional paid in  capital from treasury stock      \$32,540

Explanation: