NO.23 Which of the following e-commerce audit protocol items relates to the area of fraud?

NO.24 Which of the following is a product cost for a manufacturing company?

NO.25 If a high percentage of an entity’s total costs is fixed, the entity’s operating leverage will be:

NO.26 The problem just described is beast approved by use of which quantitative method?

NO.27 Which of the following describes the free trade zone in an e-commerce environment?

NO.28 An organization’s headquarters is centrally located and the organization runs numerous computer applications in multiple sites. Which of the following would be the most appropriate approach for conducting an audit of the mainframe computer?

NO.29 A company purchased US $50,000 worth of office supplies on January 1st and had US $15,000 of office supplies still on hand at year-end. If the initial purchase of supplies entry on January 1st was to debit office supplies expense and to credit cash for US $50,000 the adjusting entry on December 31 will be:

NO.30 If Bandit Co. uses the <List A> approach to estimate bad debt expense, the estimated bad debt expense will be <List Be.

NO.31 A means of limiting production delays caused by equipment breakdown and repair is to:

NO.32 The chart displays the:

NO.33 A mail-order retailer of low-cost novelty items is receiving an increasing number of
complaints from customers about the wrong merchandise being shipped. The order code for items has the format The major category is ww, xx is the minor category, yy identifies the item, and zz identifies the catalog. In many cases, the wrong merchandise was sent because adjacent characters in the order code had been transposed. The best control for decreasing the number of orders with the wrong merchandise is to:

NO.34 An internal auditor performs an analytical procedure to compare the gross margins of various divisional operations with those of other divisions and with the individual division’s performance in previous years. The internal auditor notes a significant increase in the gross margin at one division. The internal auditor does some preliminary investigation and also notes that there were no changes in products, production methods, or divisional management during the year. The most likely cause of the increase in gross margin is

NO.35 A corporation had profit for the year of US $101,504 and a simple capital structure consisting of the following ordinary shares outstanding:

What was the corporation’s basic earnings per share rounded to the nearest cent)?

NO.36 The greatest advantage of functional departmentalization is that it:

NO.37 A company manufactures a product that is sold for US $37.95. It uses an absorption-cost system. Plant capacity is 750,000 units annually, but normal volume is 500,000 units. Costs at normal volume are given below.

Fixed manufacturing overhead is budgeted at US $4.5 million. A customer has offered to purchase 100,000 units at US $25.00 each to be packaged in large cartons, not the normal individual containers. It will pick up the units in its own trucks. Thus, variable selling and administrative expenses will decrease by 60%. The company should compare the total revenue to be derived from this order with the total relevant costs of:

NO.38 One department of an organization, Final Assembly, is purchasing subcomponents from another department, Materials Fabrication. The price that will be charged to Final Assembly by Materials Fabrication is to be determined. Outside market prices for the subcomponents are available. Which of the following is the most correct statement regarding a market-based transfer price?

NO.39 The expected payoff if the vendor has perfect information is:

NO.40 Which of the following statements regarding organizational governance is not correct?