An audit client has a valid reason for requesting that a certain account receivable that the auditor has selected for confirmation not be confirmed. Under these circumstances, the auditor should

 Following table shows the demand for a good: Price ($) Quantity Sold $50 800 $56 740 1) What is the elasticity using the original formula (endpoint) when price of each unit increases from $50 to $56? Is the demand in this range elastic or inelastic?2) Calculate the midpoint price elasticity of demand between $50 and $56.

Assume you have $50,000 and you are willing to invest. You have two choices: a) A safe investment that promises to pay 8% profit after 1 year.b) A risky investment that has a 10% chance you might lose all your money and 90% chance you might receive X amount of money. 1) How much do you expect to get paid for a year in the second investment to be indifferent between two investment choices? (the two investments have the same Expected Profit)2) What is the Risk Premium in the second choices?

Audit tests designed to detect credit sales made before year-end that were erroneously recorded in the subsequent year provide assurance about management’s assertion regarding

Confidence levels_90-95.jpgUse the following information to answer 31-34.   In his audit of Daily Company’s accounts receivable, Hayes has decided to use MUS and has established the following parameters:   Risk of incorrect acceptance            5% Tolerable misstatement                    $100,000 Expected misstatement                     $20,000   The company’s recorded balance for accounts receivable is $2,000,000.   After conducting his audit procedures, Hayes found one overstatement error, an item recorded at $12,000, but the audited value was $9,000. Assume a sampling interval of $13,000, determine the amount of upper misstatement limit due to this error.

The demand for a good is P= 100 – 3Q. The supply is P= 40 + 2Q. Assuming a perfectly competitive market : a) What is the equilibrium price and quantity?b) What is the consumer surplus? c) What is the producer surplus? d) What is the total wealth?

Define WBAT 

Cost function for a hypothetical firm is TC ($) = 200 + 2Q + 0.5Q2 Please calculate the following cost items for producing 20 units of product: 1) Fixed Costs 2) Variable Costs 3) Total Costs 4) Average Total Cost 5) Marginal Cost (assuming that the firm is already producing 20 units, what is cost of producing one more unit)  

A seller can ‘rip-off’ a buyer when:

 Cost function for a hypothetical firm is TC ($) = 250 + 5Q + 0.5Q2 Please calculate the following cost items for producing 20 units of product: 1) Fixed Costs 2) Variable Costs 3) Total Costs 4) Average Total Cost 5) Marginal Cost (assuming that the firm is already producing 20 units, what is cost of producing one more unit)