A company is able to sell 50 000 cans of deodorant per year for the next three years at a price of R4.00 per can. The variable cost per unit is R2.50 while it required R50 000 in research and development to develop the product. The fixed costs associated with the project are R12 000 while the equipment will cost R90 000 including installation costs. An initial outlay of R20 000 will be required for working capital. The equipment will be depreciated using the straight line method over three years and has a salvage value of R20 000. The company’s tax rate is 40% while the cost of capital is 20%. What are the associated cash flows for the project? Calculate the payback period, accounting rate of return, IRR, NPV and profitability index associated with the project
Answers
To calculate the associated cash flows for the project, we need to consider the various costs, revenues, and depreciation over the three-year period. Here's a breakdown of the cash flows:
Year 0:
Initial outlay for working capital: -R20,000
Research and development cost: -R50,000
Equipment cost: -R90,000
Total cash flow in Year 0: -(R20,000 + R50,000 + R90,000) = -R160,000
Year 1:
Revenue: 50,000 cans * R4.00 per can = R200,000
Variable costs: 50,000 cans * R2.50 per can = R125,000
Fixed costs: -R12,000
Depreciation expense (straight-line): (R90,000 - R20,000) / 3 = R23,333.33
Taxable income: Revenue - Variable costs - Fixed costs - Depreciation = R200,000 - R125,000 - R12,000 - R23,333.33 = R39,666.67
Taxes (40%): -R15,866.67
Net income: Taxable income - Taxes = R39,666.67 - R15,866.67 = R23,800
Net cash flow in Year 1: Net income + Depreciation = R23,800 + R23,333.33 = R47,133.33
Year 2:
Revenue: R200,000
Variable costs: R125,000
Fixed costs: -R12,000
Depreciation expense: R23,333.33
Taxable income: R200,000 - R125,000 - R12,000 - R23,333.33 = R39,666.67
Taxes: -R15,866.67
Net income: R23,800
Net cash flow in Year 2: R23,800 + R23,333.33 = R47,133.33
Year 3:
Revenue: R200,000
Variable costs: R125,000
Fixed costs: -R12,000
Depreciation expense: R23,333.33
Taxable income: R200,000 - R125,000 - R12,000 - R23,333.33 = R39,666.67
Taxes: -R15,866.67
Net income: R23,800
Net cash flow in Year 3: R23,800 + R23,333.33 = R47,133.33
Now, let's calculate the payback period, accounting rate of return, internal rate of return (IRR), net present value (NPV), and profitability index (PI).
Payback period:
The payback period is the time it takes for the initial investment to be recovered.
Year 0: -R160,000
Year 1: R47,133.33
Year 2: R47,133.33
Year 3: R47,133.33
The payback period occurs in Year 2, and there is still R12,600.01 remaining.
Payback period = Year 2 + (Remaining amount / Year 3 cash flow)
Payback period = 2 + (R12,600.01 / R47,133.33) ≈ 2.27 years
Accounting rate of return (ARR):
ARR = (Average annual net income / Initial investment) * 100
Average annual net income = (R23,800 + R23,800 + R23,800) / 3 = R23
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Related Questions
The picture is above, I’ll mark as brainliest
Answers
Answer:
c
i could not see the ful image until now srry
pls give brainliest i need for new rank
Explanation:
i will give brainliest if correct
Which two sentences describe the characteristics of a corporation?
The company is treated as a separate tax entity by law.
The owners have to accept partial liability for debts.
It is possible to raise large amounts of capital by selling company stock.
The owners are known as corporators.
Answers
Answer:
I believe that it is A and C
Explanation:
Answer:
I believe that it is A and C
Explanation: on plato
How does a notice board help in providing information?
Answers
Answer:
to boost the marble of employees
Answer:
A notice board can display graphs, data, facts and other relevant information
Explanation:
A notice board saves time, keep people informed, and can be serve for many purposes.
Goddard company has used the fifo method of inventory valuation since it began operations in 2018. goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. the following schedule shows year-end inventory balances under the fifo and average cost methods: year fifo average cost 2018 $45,200 $54,400 2019 78,600 71,200 2020 83,800 78,600 required: prepare the 2021 journal entry to adjust the accounts to reflect the average cost method.
Answers
Adjusting to Average Cost. DR Retained Earnings = $5,200 and CR Inventory = $5,200. Cost of Goods sold in 2020 income statement will be $2,200 lower.
What is FIFO and LIFO?FIFO and LIFO, and average cost are three different ordering systems. Inventory movement is tracked using these techniques, and suitable and pertinent costs are recorded. A corporation must choose how to record the movement of its inventory, which gives rise to the concepts of LIFO and FIFO. A company's expenditures for labor, raw materials, and overhead are always fluctuating. Due to this, a good's cost to produce or purchase today may have been different from a week ago. Simply determining which item is sold first is what the LIFO and FIFO strategies do.
Working Inventory = FIFO Ending Inventory 2020 - FIFO Ending Inventory 2019
= 83,800 - 78,600
= $5,200
2. The beginning inventory for 2020 will be lower by;
= 2019 FIFO Inventory - 2019 Average Cost inventory
= 78,600 - 71,200
= $7,400
The ending inventory will be lower by;
= 2020 FIFO Inventory - 2020 Average Cost inventory
= 83,800 - 78,600
= $5,200
Cost of Goods sold = Beginning inventory + purchases - ending inventory
= -7,400 - (-5,200)
= $2,200
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an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
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best answer: brainliest
write an essay or a story about receipt (150words) and invoice (150words) seperately
Answers
Answer:
Receipt:
As I walked out of the grocery store, I couldn't help but smile as I looked at the little piece of paper in my hand. It was a simple receipt, listing the items that I had purchased and the total amount I had paid. But to me, it represented so much more than that.
The receipt was proof that I had successfully completed my weekly shopping trip. It was a record of the money that I had spent and the food that I had purchased to feed my family. It was a reminder of the things that I had accomplished that day, and a symbol of the abundance and abundance that I had in my life.
But most of all, the receipt was a symbol of trust. It was a sign that the grocery store had trusted me to pay for my purchases, and that I had trusted them to provide me with the food that I needed. It was a small but important part of the cycle of trust and mutual support that exists between businesses and consumers.
Invoice:
As I sat at my desk, staring at the computer screen, I couldn't help but feel a sense of satisfaction. I had just finished creating an invoice for a client, and it was a work of art. It was clear, concise, and professional, and I knew that it would be well-received.
The invoice was a document that outlined the services that I had provided to my client, along with the associated costs. It was a record of the value that I had delivered, and a reminder of the hard work and dedication that had gone into the project.
But most of all, the invoice was a tool for communication. It was a way for me to let my client know exactly what they owed me for my services, and to ensure that we were both on the same page about the terms of our agreement. It was a crucial part of the business relationship, and I knew that it would be instrumental in maintaining trust and mutual respect between myself and my client.
fast pls The Fair Labor Standards Act does not cover which of the following?
unemployment compensation
child labor
minimum wage
overtime pay
Answers
Describe the population distribution in Guyana
Answers
More than 70 percent of Guyana's coastal population is rural, living on plantations or in villages strung along the coastal road. The villages range in size from several hundred to several thousand inhabitants. The layout of the villages is dictated by the drainage and irrigation systems of the plantations, both active and abandoned. The villages are most heavily concentrated along the estuary of the Demerara River and the eastern environs of Georgetown, near the mouth of the Berbice River close to New Amsterdam, and along the extreme east coast near the Courantyne River.
The pattern of population distribution in Guyana is a product of nineteenth-century economic development, which was based on the cultivation of sugarcane. Because the swampy coast was fertile and sugar production was geared to export, the large sugar estates confined their operations to a narrow coastal strip. Most of the villages had ethnically diverse populations, but usually one ethnic group predominated. The urban population was predominantly African, but it would be misleading to suggest that all Afro-Guyanese were urban. Indeed, the majority of the Afro-Guyanese population was rural. A far greater majority of Indo-Guyanese, however, lived outside the cities. The interior of the country was left mainly to the Amerindians. Even the later exploitation of timber, bauxite, and manganese in the interior failed to effect any sizeable migration.
QUESTION 22 What is one cost of avoiding insurance? A. falling into debt if faced with a serious problem B. not benefitting from insurance deductibles C. not being able to purchase a car or home D. facing increased probability of accidents
Answers
Answer:
A. falling into debt if faced with a serious problem
What are the major differences between a "Guarantor" of a contract and
an "Accommodation maker/drawer" in a negotiable instrument?
Answers
Answer:
a is the answer
Explanation:
Five years ago Thompson, an investor, ran across a board game that he enjoyed and believed the game would become very popular. He purchased 1,000 shares of the corporation that publishes the game. Unfortunately, the game was too complex for most casual game players and sales never amounted to much. Over the five years, the stock of the publisher has remained steady, but has not increased in value. This is an example of
Answers
This is an example of Business risk.
Business risk is the business a company Invested their money into which later reduce their profit or become unsuccessful.
A company or organization that enter into business in which they are unable to gain that financial target they aim for after investing their money into the business is known as business risk.
Any Business a person, company or organization choose to enter into is a risk as you cannot actually predict what the outcome will be as to whether it will lead to financial gain or loss until you start the business.
Inconclusion This is an example of Business risk
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Answer:
Business Risk! Believe it!
Explanation:
What are two advantages and two disadvantages of loans?
Answers
The two advantages of a loan include,
Avoids the lump sum payment,Deferred repayment,The disadvantages of a loan, on the other hand, include,
Granted only to customers with creditworthiness,Repayment along with interest.Loans are the instruments that offer credit facilities to the customers in such a way that they have to repay the amount of loans to the bank within a specified time along with an interest rate. The different merits and demerits for the customers of getting a loan have been mentioned in the above case. Loans offer a higher amount of flexibility, but at the same time have their own disadvantages.
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Assume you are a brand manager of Jif Peanut Butter; a brand that is loved and consumed by all Americans (African-Americans, Caucasians, Hispanics, Asians, and others).
You are considering running an extended advertising campaign on prime-time television that uses Latino actors and appeals to Latino consumers. Aside from cost considerations, what reservations might you have about this type of campaign?
Answers
One of the reservations I might have about running an extended advertising campaign on prime-time television that uses Latino actors and appeals to Latino consumers is that it could come off as pandering or tokenizing to the non-Latino consumers.
If non-Hispanic customers perceive that the product is being "sold" only to Latino customers or that the product is being portrayed as unique to the Latino market, it could potentially alienate them.
In addition, I want to guarantee that the campaign's theme embraces diversity among all customers rather than fostering a "us vs. them" mentality.
Any campaign I design must be respectful and celebrate diversity rather than supporting prejudice or stereotyping.
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There's a lot to know before you use credit for the
first time. First and most obvious, you have to pay
back what you borrow. Every month you'll have a
due. This is the smallest amount
Select One
you can pay without accruing fees. Because of
interest, you'll have to pay back more than the
Select One
you initially borrowed. You should
also know that there's a ceiling for how much you can
borrow at once. This is called your
Select One
It can be a lot to juggle what
you're spending and what you owe, so a budgeting
method like Select One
I can help you get a
handle on everything.
Answers
Note that in the above credit scenario, this is the smallest amount you can pay without accruing fees.
What are the fees related to credit?It is the consumer's overall credit cost represented as a percentage of the total credit amount on a yearly basis.
Take note that credit improves your financial flow. It's handy since you don't have to spend a lot of money.
It is extremely useful when you need money for an emergency such as illness, property loss, or death. When you run out of funds, it allows you to buy products that are immediately required.
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if u.s. produced goods become more expensive than foreign-produced goods, imports will ________. at the same time, exports will ________.
Answers
If u.s. produced goods become more expensive than foreign-produced goods, imports will increase . At the same time, exports will decrease.
Import goods are goods that are brought into the US from foreign countries. Export goods are goods that are sold by the US to foreign countries.
When the price of a good is higher than it was before, the demand for the good will decrease. On the other hand, if the price of the good decreases, the demand for the good would increase. This is why the demand curve is downward sloping.
If US produced goods become more expensive when compared with foreign- produced goods, the demand for US goods will decrease and the demand for foreign made goods will increase. This will lead to an increase in import and a decrease in export.
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What is the purpose of an apartment lease?
a. It provides the budget you'll use for all of your household expenses
b. It outlines the amount of rent you'll pay, when it is due, and key obligations and rights of living
in the property
c. It provides insurance if any guests to your apartment are injured on the property
d. It makes it illegal for your landlord to evict you from the property
Answers
The purpose of an apartment lease is b. It outlines the amount of rent you'll pay, when it is due, and key obligations and rights of living in the property.
What is an apartment lease used for ?An apartment lease serves as a legally binding contract that establishes the rights and responsibilities of both parties involved. It delineates key aspects such as the duration of the lease, renewal terms, security deposit requirements, maintenance responsibilities, restrictions on alterations or subleasing, and rules governing the use of the property.
It acts as a comprehensive framework that governs the landlord-tenant relationship and ensures a clear understanding of the rights, obligations, and expectations for both parties.
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6. Describe at least three things a bank would consider about you when deciding whether to give you a loan. (1-3 sentences. 3.0 points)
Answers
Explanation:
Your Credit History
Your Ability To Pay The Loan
Your Cash Flow History
Berk and DeMarzo (2020) introduced us to some evidence that although in aggregate we believe that markets are efficient, when we examine individual behavior or even the behavior of people in groups, we find at times systemic departures from efficient market behavior. Highlight two biases (in bold) that they identified in this chapter and indicate what problems these biases may cause for the Capital Asset Pricing Model (CAPM).
Answers
General overview of biases that are commonly discussed in behavioral finance that may relate to the Capital Asset Pricing Model (CAPM). These biases can impact the assumptions and predictions of the CAPM model. Here are two common biases:
Overconfidence Bias: Overconfidence bias refers to the tendency of individuals to overestimate their own abilities or the accuracy of their beliefs. This bias can lead investors to have excessive confidence in their investment decisions, which may cause them to take on too much risk or make suboptimal investment choices. In the context of the CAPM, overconfident investors may incorrectly estimate their own expected returns or the risk associated with their investments. This can result in mispricing of assets and deviations from the CAPM's predictions.Herding Bias: Herding bias occurs when individuals imitate the actions or behaviors of others, often without conducting independent analysis or due diligence. Investors may follow the crowd or popular opinions rather than making decisions based on their own analysis or information. Herding behavior can lead to market inefficiencies as prices may become disconnected from fundamental values. In the context of the CAPM, herding bias can distort the relationship between asset returns and systematic risk, as investors may disregard individual asset characteristics and instead focus on the actions of others, leading to mispricing.Step-by-step breakdown:
Define the Bias: In this case, overconfidence bias refers to individuals overestimating their abilities or the accuracy of their beliefs.
Explain the Impact: Overconfidence bias can lead to suboptimal investment choices and excessive risk-taking. In the context of the CAPM, it can result in misestimation of expected returns or risk, causing deviations from the model's predictions.
Define the Bias: Herding bias refers to individuals imitating the actions of others without conducting independent analysis.
Explain the Impact: Herding behavior can lead to market inefficiencies and disconnect between prices and fundamental values. In the context of the CAPM, herding bias can distort the relationship between asset returns and systematic risk, as investors may focus on the actions of others rather than individual asset characteristics, resulting in mispricing.
It's worth noting that without specific information from the mentioned book, these biases are general examples commonly discussed in behavioral finance and how they may relate to the assumptions and predictions of the CAPM. The specific biases identified in "Berk and DeMarzo (2020)" might differ or expand on these examples.
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jeremy feels it is important to include a department head from each area of the company in the decision to purchase an additional warehouse. what type of team does jeremy want to form?
Answers
Jeremy wants to form a cross-functional team. This type of team involves including a department head from each area of the company in the decision to purchase an additional warehouse. By doing so, he ensures diverse perspectives and expertise are considered, leading to a more informed and effective decision-making process.
A cross-functional team, consisting of department heads from every area of the company, to ensure that all perspectives are taken into consideration before making a decision about purchasing an additional warehouse. By including representatives from different departments, the team can provide a diverse set of opinions and ideas that will lead to a more informed and comprehensive decision-making process. This type of team can also promote collaboration and communication across different departments, which can help to break down silos and improve overall organizational effectiveness. Ultimately, by forming a cross-functional team, Jeremy is demonstrating a commitment to inclusive decision-making and ensuring that all stakeholders have a voice in the process.
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which situation is an example of skimming?
a) pop-up windows on a computer asking for you pin
b) a retailer scanning your credit card to steal its number
c) bank statements stolen from your garbage
d) a phone call from someone pretending to be a bank employee
Answers
Answer:
B.) a retailer scanning your credit card to steal its number
Explanation:
Leroux health insurance is considering changing the options in one of their health care plans (plan a) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. how can leroux reduce the costs of regular health care without driving up the price of their health care plan? leroux health insurance plan a cost: monthly premium: $248.00 annual deductible: $5,500.00 co-pays: brand-name prescriptions $35.00 generic prescriptions $15.00 visits: primary care physician: $40.00 specialist: $60.00 urgent care: $125.00 emergency room: $325.00 a. reduce the monthly premium but increase the co-pay amounts to compensate for the lower premium. b. reduce the annual deductible, but increase the co-pay amounts so that the monthly premium can stay the same. c. reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same. d. reduce the co-pay amounts but increase the monthly premium to compensate for the lower deductible.
Answers
The Leroux firm can reduce the costs of regular health care without driving up the price by reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.
What is a health care insurance?This is a health insurance that provide coverage for expenses arising from health issues.
If the firm want to reduce the costs of regular health care without driving up the price of their health care plan, then, its need to reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.
Therefore, the Option B is correct.
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The Answer is B
Explanation:
Intuitive decision making uses ____ to make decisions
Answers
Answer:
Judgment.
Explanation:
Intuitive decision making uses ____ to make decisions. Judgment.
Intuitive decision making uses judgement to make decisions. Correct answer is judgement.
What do you mean by Decision?Process of deciding is known as decision.
Rational decision-making is based on reasoning, evidence, and facts. Choosing among possibilities without using logic or analysis is what intuitive decision-making entails. It entails making decisions based on emotions or inadvertently recalling a memory.
Using your instincts to guide your decision-making is part of the intuitive paradigm. When the team is knowledgeable about the topic, this model is suitable. Generally speaking, it is less organized than other models and depends on team members using prior knowledge to spot patterns and use related solutions.
Therefore, Judgement is used to make decision in Intuitive decision making.
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A student in public administration wants to determine the mean amount members of city councils earn. The error in estimating the mean is to be less than $100 with a 99% level of confidence. The student found a report by the department of labor that estimated the standard deviation to be $1000. What is the required sample size?
Answers
Answer:
663.58
Explanation:
From the problem:
E, the maximum allowable error, is $100
The value of z for a 99 percent confidence level is 2.576
Estimate of standard deviation is $1,000.
n = [(z x s)/ E] ^ 2
n = [(2.576 x 1000) / 100}^2
= 25.76^2
=663.58
Choose the answer.
This is one of the few languages that is accepted and supported by all major
browsers without the need for plug-ins or compilers. Choose the answer
A. PHP
B. CSS
C. JavaScript
Answers
C. Java script
I think srry if im wrong
Describe common operating transactions and select appropriate income statement account titles.
Explain and apply the revenue and expense recognition principles.
Analyze, record, and summarize the effects of operating transactions using the accounting equation, journal entries, and T-accounts.
Prepare an unadjusted trial balance.
Evaluate net profit margin, but beware of income statement limitations.
Answers
Operating transactions refer to the various economic events that a business engages in to generate revenue. Finally, a business can evaluate its net profit margin, which is a measure of how much profit it generates for each dollar of revenue.
Each of these transactions has a specific impact on the income statement and should be recorded using the appropriate account titles.Sales are recorded as revenue, which is one of the most important income statement account titles.
Purchases, on the other hand, are recorded as expenses, which are the costs incurred by a business to generate revenue. Common expense account titles include salaries and wages, rent, utilities, and supplies.
Payments and receipts, such as cash and credit card transactions, are recorded using the appropriate cash account titles. Cash receipts increase the balance of the cash account, while cash payments decrease it.
To analyze, record, and summarize the effects of operating transactions using the accounting equation, journal entries, and T-accounts, a business must follow the double-entry accounting system. This system requires that every transaction be recorded with both a debit and a credit entry, with the total debits equaling the total credits.
However, it's important to be aware of the limitations of the income statement, such as the fact that it only reports on a specific period of time and does not include non-operating items like interest and taxes.
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What things might cause disputes in a partnership??
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a manufacturer reduces the price of its digital cameras by 20% and, as a result, the volume of sales rises by 30%. therefore, the value of price elasticity of demand for the good is
Answers
The value of price elasticity of demand for the good is 1.5.
What is Price Elasticity of Demand?Price elasticity of demand is a measure of the responsiveness of the demand for a good or service to a change in its price. The demand for a good or service is said to be elastic if the quantity demanded changes proportionately more than the percentage change in price.
The formula to calculate the price elasticity of demand is as follows: \(E_d\) = percentage change in quantity demanded / percentage change in price, where, \(E_d\) is price elasticity of demand.
Here, the price of digital cameras has been reduced by 20% and as a result, the volume of sales rises by 30%. Therefore, the percentage change in price is 20% (as the price is reduced by 20%). And the percentage change in quantity demanded is 30% (as the sales have risen by 30%).
Using the formula, \(E_d\) = percentage change in quantity demanded / percentage change in price= 30% / 20%= 1.5. Hence, the value of price elasticity of demand for the good is 1.5.
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The human resource department of a company brings in a consultant to evaluate its performance management system. The consultant says she evaluated the validity of the system's performance measures and identified some deficiencies. What does the consultant most likely mean
Answers
It is most likely that the consultant means that some behaviors that contribute to business success are not being measured when she evaluated the validity of the system's performance measures and identified some deficiencies.
Who is a consultant?This refers to the person that provides or gives a professional or expert advice in a particular field of science or business to either an organisation or individual
The consultant for the human resource department is hired to give a professional advice on the performance management system of the firm.
Therefore, the consultant means that some behaviors that contribute to business success are not being measured when she evaluated the validity of the system's performance measures and identified some deficiencies.
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An innovative business idea that no one has never had
Answers
An innovative business idea that no one has never had is Offering virtual assistance to other businesses.
What is innovative business idea ?innovative business idea can be described as an idea in business that cn be developed so that it can be a way to earn a living by providing the services or the goods to the consumer.
It should be noted that this innovation can be the one that no one has ever done or the modification of the one that has been in exisitence, however providing the virtual assistance serves as one of the innovation in business that can ring profit.
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Complete question:
State An innovative business idea that no one has never had
15. When performing a financial statement audit, auditors are required to explicitly assess the risk of material misstatement due to: A. Fraud. B. Misappropriation. C. Illegal Acts. D. Business risk.
Answers
When performing a financial statement audit, auditors are required to explicitly assess the risk of material misstatement due to "fraud" (option a).
Fraud is defined as an intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception that results in a misstatement in the financial statements. Assessing the risk of material misstatement due to fraud requires the auditor to obtain an understanding of the entity's environment, internal control, and procedures that address the risk of fraud.
The auditor must also assess the risk of fraud by evaluating the susceptibility of the financial statements to material misstatement due to fraud, and by designing audit procedures to detect such misstatements. The auditor is also required to communicate any identified or suspected fraud to those charged with governance and, in some cases, to regulatory authorities.
Option a is answer.
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