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NEW QUESTION: 1
Multimode optical fiber is generally used for campus or building applications due to the ability to use cost effective:
A. Connectors
B. Designs
C. Installation methods
D. Transceivers
E. Cable
Answer: D

NEW QUESTION: 2
The following are facts concerning a decedent's estate:
*Taxable estate $1,700,000
*Pre-1977 taxable gifts 200,000
*Post-1976 adjusted taxable gifts 50,000
*Post-1976 gifts made to a qualified charity 100,000
The tentative tax base of this estate is
A. $1,750,000
B. $1,700,000
C. $1,900,000
D. $1,850,000
Answer: A

NEW QUESTION: 3
Payroll Data Co. (PDC) processes payroll transactions for a retailer. Cook, CPA, is engaged to express an
opinion on a description of PDC's internal controls placed in operation as of a specific date. These controls
are relevant to the retailer's internal control, so Cook's report may be useful in providing the retailer's
independent auditor with information necessary to plan a financial statement audit. Cook's report should:
A. Disclose Cook's assessed level of control risk for PDC.
B. State whether PDC's controls were suitably designed to achieve the retailer's objectives.
C. Contain a disclaimer of opinion on the operating effectiveness of PDC's controls.
D. Identify PDC's controls relevant to specific financial statement assertions.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. There are two types of reports on the processing of transactions by service
organizations: "reports on controls placed in operation" and "reports on controls placed in operation and
tests of operating effectiveness." The former does not include tests of operating effectiveness and,
therefore, are not intended to provide the user auditor with a basis for reducing the assessment of control
risk. Accordingly, such reports should include a disclaimer of opinion regarding the operating effectiveness
of the controls.
Choice "B" is incorrect. The report should contain an indication that the controls were suitably designed to
achieve specified control objectives, but it does not provide any assurance regarding the achievement of
the user organization's (in this case, the retailer's) objectives.
Choice "C" is incorrect. The service auditor (Cook) is not required to identify the service organization's (i.e.,
PDC's) controls relevant to specific financial statement assertions because this is not a financial statement
audit.
Choice "D" is incorrect. The service auditor (Cook) is not required to disclose the assessed level of control
risk for the service organization (PDC).