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Substantive - Opinionated Question

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Is the post below substantive? Why or why not?

My goal is to earn academic credentials that will position me as a leader among my peers. Lopez (2010) stated that organizations increasingly rely on knowledge workers for research-based decision making. With doctoral-level research skills, I can gather and analyze data for evidence-based decisions. I can also use analytical skills to differentiate between valid and invalid data.

This past week, my coworker and I each presented a proposal to redesign our HR department. My coworker based his proposal on anecdotes and assumptions, without any data to back up his ideas. In my proposal, I used data that I had collected from staff surveys, combined with findings from three scholarly journal articles that confirmed and reinforced my rationale for restructuring the department. The boss accepted my proposal because it showed that I understand the trends in the industry. According to Borstein (2009), 72% of HR directors in global organizations stay current with industry trends by reading journals, attending conferences, and networking with peers in professional associations.

References

Borstein, J. (2009). Head above water: Leveraging professional resources for human resources management. Academy of Human Capital Research, 4(2), 64-78. doi: 10/2222/36912-777234.12.34.980

Lopez, D. (2010). The role of research in the global knowledge economy. Journal of Knowledge and Leadership, 15(1), 113-128

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Solution Preview

Yes, your post is substantive. In the business world, decisions are not based on assumptions. Decisions are based on industry trends. Let's look at the housing market. In 2004, the assumption was that every American should own a home no matter what their financial means where. That assumption has led to the financial ...

Solution Summary

My goal is to earn academic credentials that will position me as a leader among my peers. Lopez (2010) stated that organizations increasingly rely on knowledge workers for research-based decision making. With doctoral-level research skills, I can gather and analyze data for evidence-based decisions. I can also use analytical skills to differentiate between valid and invalid data.

This past week, my coworker and I each presented a proposal to redesign our HR department. My coworker based his proposal on anecdotes and assumptions, without any data to back up his ideas. In my proposal, I used data that I had collected from staff surveys, combined with findings from three scholarly journal articles that confirmed and reinforced my rationale for restructuring the department. The boss accepted my proposal because it showed that I understand the trends in the industry. According to Borstein (2009), 72% of HR directors in global organizations stay current with industry trends by reading journals, attending conferences, and networking with peers in professional associations.

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Auditing Practice Exam Questions: Audit Risk; audit reports; sampling

1. Control risk is the probability that a material misstatement (error or fraud) could occur and not be prevented or detected on a timely basis by the auditors' substantive procedures.
a. True
b. False
c. True if control risk is set a maximum
d. False because you don't know the inherent risk level

2. What is the audit risk model?
Audit risk: AR
Control risk: CR
Inherent risk: IR
Detection risk: DR
Risk of material misstatement: ROMM

a. AR = CR x IR x DR
b. DR = CR x IR x AR
c. ROMM = CR x IR x DR
d. AR = ROMM x CR x IR x DR

3. An unqualified opinion indicates that the financial statements present the entity's financial condition, results of operations, and cash flows in conformity with GAAP.
a. True
b. False

4. For the copy of the purchase order that goes to the receiving department, it is best to:
a. leave off the description of the goods
b. leave off the quantity of the goods ordered
c. leave off the name of the vendor
d. provide duplicates, one to keep and one to forward to accounting

5. The auditors' report should either contain an expression of opinion on the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed.
a. True
b. False

6. Which of the following types of auditors' reports requires an explanatory paragraph to support the opinion?
a. adverse opinion
b. qualified opinion
c. disclaimer of opinion
d. all of the above

7. Statistical sampling plans ensure that samples are selected randomly from the population by removing auditor judgment from the sampling process.
a. True
b. False, you can never remove judgment completely as results are always interpreted
c. False, statistical sampling only permits a computation of sampling risk
d. False, there is no way to ensure random sampling

8. The risks of incorrect acceptance in variables sampling and of assessing control risk too low in attributes sampling both relate to
a. effectiveness of an audit
b. efficiency of an audit
c. assessment of control risk during planning phase
d. amount of substantive testing needed

9. The audit team will choose to reduce the reliance on controls if the ________ is greater than the ________.
a. tolerable rate of deviation; upper limit rate of deviation
b. upper limit rate of deviation; tolerable rate of deviation
c. expected rate of deviation; tolerable rate of deviation
d. tolerable rate of deviation; expected rate of deviation

10. Which of these is characteristic of the sampling process?
a. sampling identifies what belongs in the population
b. sampling requires judgments on the part of the auditor
c. sampling is normally more effective than looking at all the items in the population
d. sampling is not influenced by the definition of the population

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