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NEW QUESTION: 1
Which of the following would not be defined as an "interested person," under the Investment Company Act
of 1940?
A. a person who owns at least 5% of the voting stock of the company
B. All of the above would be defined as interested persons under the Investment Company Act of 1940.
C. an employee of the company
D. the spouse of an officer of the company
Answer: B
Explanation:
All of the choices describe entities who would be defined as interested persons under the
Investment Company Act of 1940. An interested person includes officers, directors, investment advisers,
partners, employees, anyone who owns at least 5% of the voting stock of the company, and any
immediate family members of these persons. The definition also extends to the principal underwriter and
other investment companies served by that underwriter and anyone who has acted in a professional
capacity for the company within the last two years.

NEW QUESTION: 2
A small manufacturing company makes a single product. Direct labour costs and factory rent account for
80% and 15% of total cost respectively. Activity levels have not varied by more than 5% for a number of years and there is no evidence of operational inefficiency.
Which of the following is the most appropriate approach to budgeting for this company?
A. Activity based budgeting (ABB)
B. Incremental budgeting
C. Rolling budgeting
D. Zero based budgeting (ZBB)
Answer: B

NEW QUESTION: 3

A. ToastlmageAndText0l
B. TileSquareBlock
C. TileSquarePeeklmageAndText0l
D. ToastImageAndText02
Answer: D
Explanation:
ToastImageAndText02 A large image, one string of bold text on the first line, one string of regular text wrapped across the second and third lines.

NEW QUESTION: 4
An auditor concludes that there is a material inconsistency in the other information in an annual report to
shareholders containing audited financial statements. The auditor believes that the financial statements do
not require revision, but the client is unwilling to revise or eliminate the material inconsistency in the other
information. Under these circumstances, what action would the auditor most likely take?
A. Revise the auditor's report to include a separate explanatory paragraph describing the material
inconsistency.
B. Consider the situation closed because the other information is not in the audited financial statements.
C. Issue an "except for" qualified opinion after discussing the matter with the client's audit committee.
D. Disclaim an opinion on the financial statements after explaining the material inconsistency in a
separate explanatory paragraph.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. If the auditor discovers a material inconsistency in other information accompanying
the audited financial statements, the financial statements do not require revision, and the client refuses to
eliminate or revise the inconsistency, the auditor should consider 1) revising the report to include a
separate paragraph describing the inconsistency, 2) withholding the report, or 3) withdrawing from the
engagement.
Choice "A" is incorrect. Even though the auditor has no responsibility to audit or otherwise corroborate
other information accompanying the financial statements, the auditor has a responsibility to read the other
information accompanying the financial statements for consistency and to identify any material
misstatements of fact included therein.
Choice "B" is incorrect. A qualified opinion is generally not warranted because the financial statements are
fairly stated.
Choice "C" is incorrect. A disclaimer of opinion is generally not warranted because there is no limitation on
scope.