true or false. when filing an informal complaint, the complaint must be in writing and the chain of command must be notified. (equal opportunity complaint process, page 2)

Answers

Answer 1

The given statement "when filing an informal complaint, the complaint must be in writing and the chain of command must be notified." is True because it can ensure that all the relevant details are captured.

An informal complaint is a type of complaint that is made informally and often does not involve formal legal proceedings. This type of complaint is typically used when an individual has a concern or issue that they would like to raise with their employer, co-worker, or another relevant party.

When filing an informal complaint, it is important to put the complaint in writing. Writing down the details of the complaint can help to ensure that all of the relevant information is included and can serve as a record of the complaint for future reference.

Having a written complaint can also help to prevent any misunderstandings or miscommunication, as it provides a clear and concise description of the issue at hand.

In addition to putting the complaint in writing, it is also important to notify the chain of command. The chain of command refers to the hierarchy of authority within an organization or workplace.

By informing the chain of command, the individual filing the complaint is able to bring the issue to the attention of the appropriate authorities and ensure that it is addressed in a timely manner.

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Related Questions

Which of the following is an example of an e-commerce security concern?
A. Making sure products mailed to consumers are not damaged
OB. Keeping online payments and information secure
C. Ensuring that products are safe for consumers to use
D. Educating consumers about their market options
SUBMIT

Answers

Keeping online payments and information secure is an example of an e-commerce security concern.

What is e-commerce?

E-commerce refers to buying and selling of products and services that take online through the web rather than physical activities of trade which occurs offline, hence, we are concerned with any breach of a firm's information technology security architecture , which means that making sure the products mailed are not damaged is not a concern because mailing does not happen online, the products need to be physically delivered,

Besides, online payments security is the most essential issue to  keep abreast in e-commerce, any client whose debit or credit card is compromised would return to the store and would take legal actions against the e-commerce store, safety of payment is key,

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A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n) _____.

Answers

Please find the full question below:

A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n) _____.  

a. fraud  

b. conflict of interest  

c. crisis  

d. indictment  

e. ethical issue

Answer:

The answer is - an ethical issue (option E)

Explanation:

Ethical (from the root word ethic) is a word that describes anything relating to right or wrong.

On the other hand, an issue is an important topic, situation, subject or opportunity that is discussed, evaluated or being deliberated on (considered).

Therefore, Ethical Issue describes the disscussion, evaluation or deliberation on  an important topic, situation, subject or opportunity in order to determine wether it is right or wrong.

Explain the basic assumption of economics with respect to rational self-interest. Describe two detailed real-life examples applying the assumption.

Answers

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' behaviour.

To assist explain how an economy works and how to maximise growth, income, and employment, there are numerous economic theories.

However, preferences—that is, what companies and customers like to have or prefer to avoid—are central to many ideas. Additionally, the assumptions frequently concern the resources that are or are not readily available to meet the demands and preferences. The decisions that individuals involved in an economy make are significantly influenced by the availability or scarcity of resources.

Learn the rationale behind economists' assumptions and how they affect economic models.

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' or  economic behaviour.

Economists They use assumptions in order to build a model that they can control because they are unable to isolate certain factors in the real world.

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Which of the following makes it more likely that private solutions to externality problems will succeed?
a. high transaction costs
b. high prices for legal services
c. delays in the bargaining process
d. a small number of affected parties
e. loosely defined legal rights

Answers

The option that makes it more likely for private solutions to externality problems to succeed is a small number of affected parties. So, correct option is D.

When there are a small number of affected parties involved in addressing an externality problem, it becomes easier for them to negotiate and reach an agreement. With fewer parties involved, it is generally less complicated to coordinate and find mutually beneficial solutions.

On the other hand, options (a) high transaction costs, (b) high prices for legal services, (c) delays in the bargaining process, and (e) loosely defined legal rights can all hinder the success of private solutions to externality problems.

High transaction costs, such as administrative fees and legal expenses, can make negotiations and agreements more costly and burdensome, discouraging parties from seeking private solutions.

Delays in the bargaining process can prolong the resolution and increase frustration, potentially leading to a breakdown in negotiations. Loosely defined legal rights can create ambiguity and disputes regarding responsibilities and liabilities, making it difficult to establish clear agreements.

In summary, a small number of affected parties tends to facilitate the effectiveness of private solutions to externality problems by simplifying negotiations and increasing the likelihood of reaching mutually satisfactory outcomes.

So, correct option is D.

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Which of the following is a difference between goods and services? a. Goods are not protected by patents, whereas services are protected by patents. b. Goods are tangible, whereas services are intangible. c. The demand for goods is difficult to predict, whereas the demand for services is easy to predict. d. Goods cannot be stored as physical inventory, whereas services can be stored as physical inventory..

Answers

Answer:

B. Goods are tangible whereas services are intangible.

Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand curve is linear and is given as follows: P = 56 - 4Q. The marginal cost to produce this new drink is $5 (MC = 5) for every firm in this market. What will be the price of this new drink if the industry is a Cournot duopoly of two identical firms?
A. $37.5
B. $24.25
C. $22
D. $16

Answers

The price of the new drink in a Cournot duopoly of two identical firms would be approximately **$22**. Thus, the correct answer is **C. $22**.

To determine the price of the new drink in a Cournot duopoly, we need to calculate the equilibrium quantity produced by each firm and then substitute it into the demand curve to find the price.

In a Cournot duopoly, each firm determines its quantity produced taking into account the reaction of the other firm. The firms maximize their profits by setting output levels simultaneously.

To find the equilibrium quantity, we set the total quantity supplied (Q) equal to the total quantity demanded:

Q = Q1 + Q2

Given that the two firms are identical, we can assume they produce the same quantity, so Q1 = Q2 = Q/2.

Substituting this into the demand equation:

Q = 56 - 4Q/2

2Q = 56 - 2Q

3Q = 56

Q = 56/3 ≈ 18.67

Now we can calculate the price by substituting the equilibrium quantity back into the demand equation:

P = 56 - 4Q

P = 56 - 4(18.67)

P ≈ $22

Therefore, the price of the new drink in a Cournot duopoly of two identical firms would be approximately **$22**. Thus, the correct answer is **C. $22**.

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100 percent of your income after you re tire will probably come from social security
and the companies that employed you.

Is it true or false?

Answers

Answer:

average, retirement beneficiaries receive 40% of their pre-retirement income from Social Security. As you make your retirement plan, knowing the approximate amount you will receive in Social Security benefits can help you determine how much other retirement income you'll need to reach your goals.

Explanation:

please mark me as brainlist itt is true

Which of the following choices incur speculative risk?

a.stocks

b.fire insurance on a house

c.options

d.life insurance


e.high interest savings account

Answers

Answer: correct option is A.

Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.

Stocks incur speculative risk. Therefore option A is correct.

What are Stocks?

A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.

Common stock and preferred stock are the two primary categories of stocks.

Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.

Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.

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True or false is April 15th is an important date for people who have a job.

Answers

Answer:

true

Explanation:

its Tax Day so they are very busy

A____ is the cost of or the money used in acquiring fixed assets, adding a component, or replacing a component of a fixed asset to aid in the generation of revenue for more than a year. O preferred stock O common stock O capital investment O dividend

Answers

Capital investment refers to the cost incurred in acquiring or upgrading fixed assets that contribute to revenue generation for more than a year.

Capital investment is the expenditure made by a company to acquire or enhance fixed assets, such as buildings, equipment, or machinery, which are essential for its operations and revenue generation over an extended period, typically more than a year.

It represents a long-term commitment of financial resources with the goal of generating future income and improving the efficiency or capacity of the business. By investing in fixed assets, companies aim to increase their production capabilities, expand their market reach, or improve operational efficiency.

Capital investment decisions are crucial for businesses as they impact their growth potential, profitability, and competitive advantage. These investments are distinct from other types of financing, such as preferred stock or common stock, and are primarily focused on acquiring or improving tangible assets that directly contribute to revenue generation.

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Mention five legal ways to spend money

Answers

Some ways that you can spend money legally are:

Buying booksGoing on a vacationBuying a companyGiving to the poor or a charityEmploying labor

What is Money?

This refers to the legal tender that is used for the buying and selling of goods and services that have an inherent value

Hence, we can see that based on the given question, money can be spent in a variety of ways legally and this includes starting a business, giving to the poor, etc.

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how many times did the red river reach flood stage at fargo between 1882 and 2010?

Answers

Between 1882 and 2010, the Red River reached flood stage at Fargo approximately 55 times. The most severe floods occurred in 1897, 1950, 1997, and 2009, causing extensive damage to property and infrastructure.

Fargo is located in the Red River Valley, which is known for its frequent flooding due to the area's topography and weather patterns. To mitigate the effects of future floods, the city of Fargo has implemented various measures, such as constructing levees and flood walls, improving drainage systems, and enforcing strict building codes. Additionally, the National Weather Service regularly monitors the river's water levels and issues flood warnings to residents and businesses in the area.

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A property has a net operating income of $20,000.00, and $15,000 in expenses that includes $2,000.00 in property taxes. If property taxes were to increase by 45%, by what percentage will the expenses increase?5%6.%7%8%

Answers

The property's net operating income is $20,000, and its total expenses are $15,000, including property taxes of $2,000. If the property taxes increase by 45%, the new property tax expense will be $2,900 ($2,000 x 1.45).

To determine the percentage increase in total expenses, we need to calculate the new total expenses. The new total expenses would be $17,900 ($15,000 + $2,900).

To calculate the percentage increase in expenses, we need to find the difference between the new and old expenses and divide that by the old expenses.

The difference between the new and old expenses is $2,900, and the old expenses are $15,000.

The percentage increase in expenses would be 19.33% [(2,900/15,000) x 100]. Therefore, the answer is not one of the given options. The correct answer is 19.33%.

If the property taxes increase by 45%, the total expenses will increase by 19.33%. This is because property taxes are only a part of the total expenses, and the increase in taxes would only be a portion of the total increase in expenses.

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Which of the following is a function performed by market prices?
a. Market prices communicate information to buyers and sellers.
b. Market prices coordinate the decisions of buyers and sellers.
c. Market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production.
d. All of the above are functions performed by market prices.

Answers

Following are the functions performed by market prices a. Market prices communicate information to buyers and sellers; b. Market prices coordinate the decisions of buyers and sellers; c. Market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. The correct answer is d. All of the above are functions performed by market prices.

Market prices play a crucial role in the functioning of a market economy. Firstly, market prices serve as a means of communication, conveying information to both buyers and sellers regarding the value, availability, and desirability of goods and services. They provide important signals about supply and demand conditions, enabling participants to make informed decisions.

Secondly, market prices help to coordinate the actions of buyers and sellers. When prices adjust based on the interaction of supply and demand, they incentivize buyers to purchase goods and sellers to produce and offer goods for sale. This coordination ensures that resources are allocated efficiently and that goods and services are distributed in accordance with consumer preferences.

Therefore, market prices not only communicate information but also facilitate coordination and motivate entrepreneurial activities. They are a fundamental mechanism in market economies for allocating resources and promoting economic efficiency.

The correct answer is d.

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_____ include tools and equipment used to produce goods and services.
a. Capital resources
b. Consumer resources
c. Human resources
d. Natural resources

Answers

Answer:

The correct answer is B!

Explanation:

Consumer resources, include tools and equipment used to produce goods and services. Thus, option (b) is correct.

What is goods?

The term goods as the another name was the commodities. The goods are the sold to the exchange of the money. The goods are the produced with the help of raw material. The goods are the based on the two prices, such as the manufacturing prices and retail prices. The goods are the two types are the raw goods and the finished goods.

According to the manufactured goods and services as the companies are the manufacturing to the based on the consumer resources. The foundation is built on economic development. Factors of production are the resources used to create all commodities and services.

As a result, the consumer resources, include tools and equipment used to produce goods and services.

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schneider inc. had salaries payable of $61,600 and $91,400 at the end of 2020 and 2021, respectively. during 2021, schneider recorded $620,900 in salaries expense in its income statement. cash outflows for salaries in 2021 were:

Answers

The cash outflows for salaries in 2021 were $650,700.

The cash outflows for salaries in 2021 can be calculated by considering the change in salaries payable and the salaries expense recorded in the income statement.

To calculate the cash outflows for salaries in 2021, we need to determine the change in salaries payable from 2020 to 2021. The change in salaries payable can be calculated by subtracting the salaries payable at the end of 2020 from the salaries payable at the end of 2021.

Change in salaries payable = Salaries payable at the end of 2021 - Salaries payable at the end of 2020
Change in salaries payable = $91,400 - $61,600
Change in salaries payable = $29,800

Next, we need to consider the salaries expense recorded in the income statement for 2021. The salaries expense represents the amount of salaries incurred by Schneider Inc. during 2021.
Salaries expense in 2021 = $620,900

The cash outflows for salaries in 2021 can be calculated by adding the change in salaries payable to the salaries expense.

Cash outflows for salaries in 2021 = Change in salaries payable + Salaries expense in 2021
Cash outflows for salaries in 2021 = $29,800 + $620,900
Cash outflows for salaries in 2021 = $650,700

Therefore, the cash outflows for salaries in 2021 were $650,700.

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what is Area Selection​

Answers

Answer:  Area selection refers to the process of choosing a specific region or portion of a larger entity, such as a document, image, or map, for further manipulation or analysis.

In various software applications, including graphics editing programs, word processors, and geographic information systems (GIS), area selection allows users to define and isolate a particular area of interest.  This can be done using tools like selection boxes, lassos, or polygonal shapes.

Once an area is selected, it can be subject to various actions or operations, such as copying, cutting, pasting, deleting, modifying, or applying specific effects or filters.  This feature provides users with the ability to focus on a specific portion of a larger entity without affecting the rest of the content.

For example, in an image editing software, area selection enables users to isolate and edit specific objects or regions within an image.  They can adjust the colors, apply filters, or remove unwanted elements within the selected area without affecting the rest of the image.

At the beginning of the week, Jared had $50 in his bank account. On Tuesday, he made a $20 withdrawal. Thursday he made a $50 deposit. On Friday, he made a withdrawal of $50. What was the balance in Jared's bank account at the end of the week?

Answers

Answer:

Please help me

Explanation:

wages such as health insurance are the nonmonetary compensation an employer gives an employee

true or false

Answers

The answer would be False

Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock (g) Depreciation expense (c) Increase in interest receivable (h) Payment of dividends (d) Purchase of land (i) Decrease in utilities payable (e) Decrease in accounts payable (j) Increase in inventory How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows

Answers

Answer:

(a) Decrease in accounts receivable

(g) Depreciation expense

Explanation:

Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.

It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted

Based on the above explanation, the items which are to be added in the operating activities are

(a) Decrease in account receivable

(g) depreciation expense

Out of all Other items would be deducted and all other items belong to investing and financing activity

boss wants to sleep with you, and it’s clear that visiting a hotel will help your career. what are the two arguments against? what’s an argument in favor?

Answers

When faced with a situation where a boss wants to sleep with an employee and visiting a hotel is suggested to advance one's career, it is important to consider the ethical and professional implications.

Here are two arguments against engaging in such a scenario:

Unethical Behavior: Engaging in a sexual relationship with a superior raises ethical concerns, such as favoritism, abuse of power, and potential exploitation. It compromises the principles of fairness, meritocracy, and equal opportunities in the workplace. It may also create a hostile work environment for others and damage the overall morale and trust within the organization.

Potential Negative Consequences: While it may seem like visiting a hotel could help one's career in the short term, it can lead to long-term negative consequences. The affair could be exposed, leading to reputational damage, loss of credibility, and potential legal issues. Additionally, the reliance on personal relationships rather than merit and qualifications can hinder professional growth and development based on genuine skills and abilities.

One argument in favor could be:

Short-Term Gain: Visiting a hotel and engaging in a sexual relationship with a boss may provide immediate benefits, such as promotions, raises, or preferential treatment. In some cases, individuals may prioritize short-term gains over long-term consequences or personal values.

However, it is crucial to consider the potential harm and the overall impact on personal well-being, professional growth, and the ethical climate of the workplace. It is advisable to prioritize maintaining professional boundaries, promoting a fair and inclusive work environment, and focusing on career advancement based on merit, skills, and qualifications.

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Questions u could ask someone in an interview about fundraising ideas

Answers

how comfortable are you about asking people for money?

what type of fundraising ideas would you recommend?

where/how would you approach people at a fundraiser?

have you ever experienced a fundraiser?

have you ever organized a fundraiser?

what ideas can you bring to the table?

Please state the conditions for the formation of a born global firm. from the very beginning, yeecall has cast its eyes directly on the overseas market. based on the theory of born global firms, discuss the reason why yeecall was successful with its business abroad, and how it selected its target market.

Answers

A born global firm is a company that is able to quickly establish itself in foreign markets, typically within the first three years of operation. The conditions for the formation of a born global firm include having a unique product or service, having a highly skilled and adaptable team, leveraging technology and having a strong understanding of the target market.

Yeecall was successful with its business abroad due to its strong focus on the overseas market from the very beginning. The company was able to leverage technology to quickly establish a presence in foreign markets and adapt to local market conditions. Yeecall also had a unique product, a free messaging and video calling app, which helped differentiate it from competitors.

In terms of target market selection, Yeecall focused on markets where there was high demand for free messaging and video calling apps, as well as markets with high mobile penetration rates. This included countries such as India, Indonesia, and Brazil. By targeting these markets, Yeecall was able to quickly gain a large user base and establish itself as a leading provider of messaging and video calling services.

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consider the gordon growth model of equity pricing. stock required return on equity most recent earnings per share expected earnings growth a 5% $50 2% b 6% $35 4% c 9% $45 4% a. calculate the prices for the equities in the table above. b. suppose there is a stock whose most recent earnings was $2.50 per share; you expect its earnings in the next period to be $2.60 per share. if you are currently willing to pay $65 for a share of this stock, what is your required return on equity?

Answers

a. the calculated prices for the equities are $1666.67 for stock A, $1750 for stock B, and $900 for stock C. b. the required return on equity for this stock is 8%.

a. To calculate the prices for the equities in the table above using the Gordon growth model, we can use the formula:

Price = (Dividend / (Required Return - Expected Growth))

We can assume that the entire earnings per share are paid out as dividends.

Using this formula, we get:

For stock A: Price = (50 / (0.05 - 0.02)) = $1666.67

For stock B: Price = (35 / (0.06 - 0.04)) = $1750

For stock C: Price = (45 / (0.09 - 0.04)) = $900

Therefore, the calculated prices for the equities are $1666.67 for stock A, $1750 for stock B, and $900 for stock C.

b. To calculate the required return on equity for the stock whose most recent earnings was $2.50 per share and expected earnings growth of 4%, we can use the Gordon growth model as follows:

$65 = ($2.60 / (Required Return - 0.04))

Required Return = ($2.60 / $65 + 0.04) = 0.08 or 8%

Therefore, the required return on equity for this stock is 8%.

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A monopolist sells to tourists who have demand p1 = 14 – q1 at a price of $8.00. Residents have demand p2 = 10 – q2. The firm implements an OPD pricing plan. What price should the monopolist charge to the residents?

Answers

Answer:

Price charge to the residents = $4

Explanation:

Given:

p1 = 14 – q1 at a price of $8.00

p2 = 10 – q2

Find:

Price charge to the residents

Computation:

p1 = 14 – q1 at a price of $8

8 = 14 – q1

q1 = 6

In OPD q1 = q2

So,

p2 = 10 – q2

p2 = 10 – 6

p2 = $4

Price charge to the residents = $4

A country that pays out more for imports more than it receives for exports is
said to have

A. a negative balance of payments

B. a positive balance of trade

C. a negative currency balance

D. a positive balance of payments

Answers

smilebassett :

C. a negative currency balance

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A country that pays out more for imports more than it receives for exports issaid to haveA. a negative

A Country that pays out more for imports more than it receives for its exports is said to have a Negative Currency Balance.

What is Imports?

Import is the process of buying goods from a foreign country in order to fulfill the needs and demands of own country or to resell such products to gain commission.

What is Exports?

Selling of Goods from own country to another country is known as Export. It is done when a country produces any commodity in excess quantity and wants to sell it worldwide.

What is Negative Currency Balance?

Negative Currency Balance refers that the outflow of money is more that inflow which means import is more that export. It results to the increase of Assets of that foreign country and negative capital balance of the own country.

Hence Option C is the correct answer.

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To measure an economy's output adjusted for changes in the price level, one would use Multiple Choice GDP per capita. value added. real GDP. nominal GDP.

Answers

Answer: Real GDP is an inflation-adjusted measure that reflects the number of goods and services produced by an economy in a given year, with prices held constant

Explanation: I hope this can be helpful.

Bakery A uses 60 bags of flour each month. The flour is purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. Bakery A's annual inventory holding cost percentage is 40%. If Bakery A chooses to use the economic order quantity for flour purchases, how many orders will be placed with the supplier each year?

Answers

I don't what the answer is but I will look for it

what are the three steps for correcting an amount posted to an incorrect column?

Answers

Answer:  

the three steps for correcting an amount posted to an incorrect column are:

draw a line through the incorrect item in the column in which you posted it incorrectly.record the posting of the correct amount in the column .recalculate the whole account balance.

   and this is how you can correct an amount which you posted incorrectly in a wrong column easily and efficiently .

Explanation:

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Answer:

1. Find the Incorrect Posting

2. Reverse the Posting

3. Make a Correcting Entry

Explanation:

1. Find the Incorrect Posting: The first step is to identify the amount that was posted to the wrong column. This can be done by looking at the ledger entries, bank statements, and other financial records.

2. Reverse the Posting: The second step is to reverse the incorrect posting. This can be done by creating a new journal entry to move the amount from the incorrect column to the correct column.

3. Make a Correcting Entry: The third step is to make a correcting entry. This is done by creating a new journal entry that debits the incorrect column and credits the correct column with the same amount. The correcting entry helps to ensure that the books are in balance.

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Question 2. Small Town Sweets—audit planning analytics (4%)
Small Town Sweets is based in Molong, NSW, and produces a range of high-quality confectionery for the East Coast market. Small Town Sweets operates in a low-margin environment, which typically means that large volumes are required to cover overhead costs and generate profits. It also means that overheads need to be kept under control to ensure that a net profit is generated from its operations. Debt is also kept to a minimum to ensure that interest costs are low and that there is sufficient margin to protect solvency during downturns.
The company did not reach industry profitability benchmarks in the previous year and budgeted to do better in the current year. It thought that it could do so by keeping its costs down in relation to sales while allowing its gross margin to drop, evidently planning to generate a larger volume of sales. The company also planned to better manage its working capital by reducing inventory and accounts receivable levels, indicating that it expected to produce a healthy cash flow to enable it to do so. As part of the planning process MCA has produced the following analytical information:
Ratio Actual Budgeted Prior Year Industry
Return on equity % 12.9 16.6 14.8 15.5
Return on total assets % 10.7 14.2 13.1 14.5
Gross margin % 8.5 9.0 9.5 9.0
Marketing expense/sales % 2.6 1.8 2.0 2.2
Admin expenses/sales % 1.6 1.6 1.8 2.0
Interest coverage ratio 5.4 8.1 6.4 6.0
Days in inventory 33.1 30.4 31.1 30.0
Days in accounts receivable 50.0 48.0 49.7 45.0
Current ratio 1.3 1.2 1.2 1.5
Quick asset ratio 0.81 0.77 0.77 1.0
Debt to equity ratio 0.51 0.33 0.41 0.40
Required
With reference to ASA 315 and the information above, identify and justify:
the three ratios that would be of most interest in the planning of the audit.
the account balance that is most at risk for each ratio identified in 1.
the assertion most at risk for each account balance identified in 2.
Answer this question using the following headings:
1. Ratio
2. Account balance
3. Assertion

Answers

Ratio:

a) Return on equity %

b) Days in inventory

c) Days in accounts receivable

Account balance:

a) Net income

b) Inventory

c) Accounts receivable

Assertion:

a) Existence

b) Valuation

c) Completeness

Justification:

Ratio:

a) Return on equity %: Return on equity is a key profitability ratio that measures the company's ability to generate profits for shareholders. It is of interest to auditors as it provides insight into the effectiveness of the company's management team in generating profits. A lower than expected return on equity could indicate mismanagement or fraudulent activity.

b) Days in inventory: Days in inventory is a ratio that measures the average number of days it takes for inventory to be sold. It is of interest to auditors as it provides insight into the efficiency of the company's inventory management system. A high number of days in inventory could indicate that inventory is not being managed efficiently, leading to potential overstatement of inventory and understatement of cost of sales.

c) Days in accounts receivable: Days in accounts receivable is a ratio that measures the average number of days it takes for customers to pay their bills. It is of interest to auditors as it provides insight into the efficiency of the company's accounts receivable management system. A high number of days in accounts receivable could indicate that the company is not collecting receivables in a timely manner, leading to potential overstatement of accounts receivable and understatement of bad debts.

Account balance:

a) Net income: Net income is the primary measure of a company's profitability. It is at risk if the return on equity ratio is lower than expected, as it may indicate mismanagement or fraudulent activity.

b) Inventory: Inventory is a major component of cost of sales and is at risk if the days in inventory ratio is higher than expected, as it may indicate potential overstatement of inventory and understatement of cost of sales.

c) Accounts receivable: Accounts receivable represent amounts owed to the company by customers. They are at risk if the days in accounts receivable ratio is higher than expected, as it may indicate potential overstatement of accounts receivable and understatement of bad debts.

Assertion:

a) Existence: The existence assertion is at risk for net income if the return on equity ratio is lower than expected, as it may indicate mismanagement or fraudulent activity.

b) Valuation: The valuation assertion is at risk for inventory if the days in inventory ratio is higher than expected, as it may indicate potential overstatement of inventory and understatement of cost of sales.

c) Completeness: The completeness assertion is at risk for accounts receivable if the days in accounts receivable ratio is higher than expected, as it may indicate potential overstatement of accounts receivable and understatement of bad debts.

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