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Consider accumulating additional evidence to

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**consider accumulating additional evidence to determine if there is actually an illegal act(appears as a duplicate response) consider accumulating additional evidence to determine if there is actually an illegal act Coaching tip: If the auditor believes an illegal act may have occurred, they can (1) inquire one level ABOVE the place where they believe the act occurred, (2) gather more evidence about the act and (3) consult with legal counsel about the legality. 10. The most widely used profitability ratio is: quick ratio profit margin return on assets **earnings per share Coaching tip: This one is up for debate. EPS is used widely by financial statement users. Internally, however, ROA is more widely used.
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11. Which is a liquidity activity ratio? Profit margin (Profitability ratio) ** Inventory turnover (activity ratio) Return on assets (profitability ratio) Times interest earned (solvency ratio) 1. Match the following definitions to the terms. __C__ Standards of Fieldwork __A__ General Standards __B__ Standards of Reporting a. Due Professional Care b. Adequacy of informative disclosuresc. c.Sufficient understanding of internal control 2. The following is a portion of a qualified scope and opinion report due to a scope restriction. (Note: A separate report was issued on the effectiveness of internal control over financial reporting.) Independent Auditor's Report To the shareholders of Fast Times Corporation, We have audited the accompanying balance sheet of Fast Times Corporation as of September 30, 2009, and the related statements of income, retained earnings, and cash flows for the past year. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We were unable to obtain audited financial statements supporting the company's investment in a foreign affiliate stated at $1,040,000, or its equity in earnings of that affiliate of $501,000, which is included in net income, as described in Note 14 to the financial statements. Because of the nature of the company's records, we were unable to satisfy ourselves as to the carrying value of the investment or the equity in its earnings by means of other auditing procedures. Required: Complete the above report by preparing the opinion paragraph. Opinion paragraph: In our opinion, except for the effects of such adjustments, if any, as might have been determined to be needed had we been able to obtain information supporting the
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investment in the foreign affiliate mentioned above, the financial statement present fairly, in all material respects, the financial position of the company as of September 30, 2009,
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consider accumulating additional evidence to determine if...

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