Auditing II: Final Exam Homework Review
An auditor must be independent to: a. issue a review report. b. perform a compilation. c. provide consulting services. d. perform tax services.
a.
Analysis of which account is least likely to reveal evidence relating to recorded retirement of equipment? a. Purchase returns and allowances. b. Insurance expense. c. Accumulated depreciation. d. Property, plant, and equipment.
a.
For each of the following subsequent events, indicate whether the financial statements should be: (A) adjusted; (D) the event should be disclosed in the financial statements; or (ND) the event need not be disclosed. Subsequent Event 1. An employee strike is called. 2. A lawsuit that was begun a year ago is settled after the Balance sheet date. 3. A new subsidiary is purchased. 4. A major customer of the company is lost. 5. A significant decline in the value of inventories occurs. 6. A plant of the company is destroyed by fire.
1. ND, 2. A, 3. D, 4. ND, 5. D, 6. D
While performing an internal control audit in conformity with PCAOB Standard No. 5, the auditors must be able to identify both control strengths and control weaknesses. Items (1) through (11) present various control strengths and deficiencies. For each item, select from the following list the appropriate response. A. Control strength for the revenue cycle (including cash receipts). B. Control deficiency for the revenue cycle (including cash receipts). C. Control strength unrelated to the revenue cycle. Item 1. Credit is granted by a credit department. 2. Sales returns are presented to a sales department clerk who prepares a written pre numbered shipping report 3. Statements are sent monthly to customers. 4. Write-offs of accounts receivable are approved by the controller. 5. Cash disbursements over $10,000 require two signatures on the check. 6. Cash receipts received in the mail are received by a secretary with no record keeping responsibility. 7. Cash receipts received in the mail are forwarded unopened, with remittance advices, to accounting. 8. The cash receipts journal is prepared by the treasurer's department. 9. Cash is deposited weekly. 10. Support for disbursement checks is canceled after payment by the treasurer. 11. Bank reconciliation is prepared by individuals independent of cash receipts record keeping.
1. a, 2. b, 3. a, 4. b, 5. c, 6. a, 7. b, 8. b, 9. b, 10. c, 11. a
An auditor most likely would inspect loan agreements under which an entity's inventories are pledged to support management's financial statement assertion of: a. Presentation and disclosure. b. Valuation or allocation. c. Existence or occurrence. d. Completeness.
a.
An audit of internal control over financial reporting ordinarily assesses internal control: a. As of the last day of the fiscal period. b. As of the last day of the auditor's fieldwork. c. For the entire fiscal period. d. For the entire period plus the period of the auditor's fieldwork.
a.
An audit of the balance in the accounts payable account is ordinarily not designed to: a. Detect accounts payable that are substantially past due. b. Verify that accounts payable were properly authorized. c. Ascertain the reasonableness of recorded liabilities. d. Determine that all existing liabilities at the balance sheet date have been recorded.
a.
An auditor is most likely to trace treasury stock purchase transactions to the: a. Numbered stock certificates on hand. b. Articles of incorporation. c. Year's interest expense. d. Minutes of the audit committee.
a.
All corporate capital stock transactions should ultimately be traced to the: a. Minutes of the board of directors. b. Cash receipts journal. c. Cash disbursements journal. d. Numbered stock certificates.
a.
An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,600 debit balance, the adjustment to record bad debts for the period will require a: a. debit to Bad Debt Expense for $5,600 b. debit to Bad Debts Expense for $4,000 c. debit to Bad Debts Expense for $2,400 d. credit to Allowance for Doubtful Accounts for $5,000
a.
Audit of which of the following accounts is most likely to reveal evidence relating to recorded retirements of equipment? a. Accumulated depreciation. b. Cost of goods sold. c. Purchase returns and allowances. d. Purchase discounts.
a.
Comfort letters to underwriters are normally signed by the: a. Independent auditor. b. Underwriter. c. Client's lawyer. d. Chief executive officer.
a.
For effective internal control, the accounts payable department should compare the information on each vendor's invoice with the: a. Receiving report and the purchase order. b. Receiving report and the voucher. c. Vendor's packing slip and the purchase order. d. Vendor's packing slip and the voucher.
a.
In an audit of a sole proprietorship, a common difficulty is lack of: a. Segregation of personal net worth and business capital. b. Availability of the owner. c. Agreement as to the distribution between retained earnings and owners' capital. d. Proper measures of dividends.
a.
In an integrated audit, which of the following must be communicated by management to the audit committee? Known Material Weaknesses Known Significant Deficiencies a. Yes Yes b. Yes No c. No Yes d. No No
a.
In an integrated audit, which of the following must the auditors communicate to the audit committee? Known Material Weaknesses Known Significant Deficiencies a. Yes Yes b. Yes No c. No Yes d. No No
a.
In the continuing audit of a manufacturing company of medium size, which of the following areas would you expect to require the least amount of audit time? a. Owners' equity. b. Revenue. c. Assets. d. Liabilities.
a.
In which of the following reports should a CPA not express negative (limited) assurance? a. A standard compilation report on financial statements of a nonpublic entity. b. A standard review report on interim financial statements of a public entity. c. A standard review report on financial statements of a nonpublic entity. d. A comfort letter on financial information included in a registration statement filed with the Securities and Exchange Commission.
a.
McPherson Corp. does not make an annual physical count of year-end inventories, but instead makes weekly test counts on the basis of a statistical plan. During the year, Sara Mullins, CPA, observes such counts as she deems necessary and is able to satisfy herself as to the reliability of the client's procedures. In reporting on the results of her examination, Mullins: a. Can issue an unqualified opinion without disclosing that she did not observe year-end inventories. b. Must comment in the scope paragraph as to her inability to observe year-end inventories, but can nevertheless issue an unqualified opinion. c. Is required, if the inventories are material, to disclaim an opinion on the financial statements taken as a whole. d. Must, if the inventories are material, qualify her opinion.
a.
Ordinarily, the most significant assertion relating to accounts payable is: a. Completeness. b. Existence. c. Presentation. d. Valuation.
a.
Smithson Corporation's unadjusted trial balance includes the following balances (assume normal balances): - Accounts Receivable $2,238,000 - Allowance for Doubtful Accounts $42,600 (credit balance) Bad debts are estimated to be 6% of outstanding receivables. What amount of bad debts expense will the company record? a. $91,680 b. $134,280 c. $136,836 d. $89,124
a.
The aggregated misstatement in the financial statements is made up of: Known Misstatements Projected Misstatements Other Misstatements a. Yes Yes Yes b. Yes Yes No c. No Yes No d. No Yes Yes
a.
The auditor's analytical procedures will be facilitated if the client: a. Uses a standard cost system that produces variance reports. b. Segregates obsolete inventory before the physical inventory count. c. Corrects material weaknesses in internal control before the beginning of the audit. d. Reduces inventory balances to the lower of cost or market.
a.
The auditors would be most likely to find unrecorded long-term liabilities by analyzing: a. Interest payments. b. Discounts on long-term liabilities. c. Premiums on long-term liabilities. d. Recorded long-term liability accounts.
a.
The document issued by a common carrier acknowledging the receipt of goods and setting forth the provisions of the transportation agreement is the: a. Bill of lading. b. Job time shipping. c. Production order. d. Production schedule.
a.
To determine that all sales have been recorded, the auditors would select a sample of transactions from the: a. Shipping documents file. b. Sales journal. c. Accounts receivable subsidiary ledger. d. Remittance advices.
a.
When a primary risk related to an audit is possible overstated inventory, the assertion most directly related is: a. Existence. b. Completeness. c. Clarity. d. Presentation.
a.
When auditing the statement of cash flows, which of the following would an auditor not expect to be a source of receipts and payments? a. Capitalization. b. Financing. c. Investing. d. Operations.
a.
When perpetual inventory records are maintained in quantities and in dollars, and internal control over inventory is weak, the auditor would probably: a. Want the client to schedule the physical inventory count at the end of the year. b. Insist that the client perform physical counts of inventory items several times during the year. c. Increase the extent of tests for unrecorded liabilities at the end of the year. d. Have to disclaim an opinion on the income statement for that year.
a.
Which of the following is most likely to be considered a material weakness in internal control? a. Ineffective oversight of financial reporting by the audit committee. b. Restatement of previously issued financial statements due to a change in accounting principles. c. Inadequate controls over non routine transactions. d. Weaknesses in risk assessment.
a.
Which of the following should be included as a part of inventory costs of a manufacturing company? Direct Labor Raw Materials Factory Overhead a. Yes Yes Yes b. Yes No No c. No Yes No d. No No No
a.
Which of the following statements is not typical of property, plant, and equipment as compared to most current asset accounts? a. A property, plant, and equipment cutoff error near year-end has a more significant effect on net income. b. Relatively few transactions occur in property, plant, and equipment during the year. c. The assets involved with property, plant, and equipment ordinarily have relatively longer lives. d. Property, plant, and equipment accounts typically have a higher dollar value.
a.
A client erroneously recorded a large purchase twice. Which of the following internal control measures would be most likely to detect this error in a timely and efficient manner? a. Footing the purchases journal. b. Reconciling vendors' monthly statements with subsidiary payable ledger accounts. c. Tracing totals from the purchases journal to the ledger accounts. d. Sending written quarterly confirmation to all vendors.
b.
A possible loss, stemming from past events that will be resolved as to existence and amount by some future event, is referred to as a(n): a. Analytical process. b. Loss contingency. c. Probable loss. d. Unasserted claim.
b.
A transfer agent and a registrar are most likely to provide the auditor with evidence on: a. Restrictions on the payment of accounts payable. b. Shares issued and outstanding. c. Preferred stock liquidation value. d. Transfers occurring between management and related parties.
b.
Concerning interim quarterly financial statements, management of public companies: a. Must engage CPAs to audit the statements. b. Must engage CPAs to review the statements. c. May choose to engage CPAs to review the statements d. May not engage CPAs to become associated with the statements.
b.
In an integrated audit, which of the following lead(s) to an adverse opinion on internal control? Known Material Weaknesses Known Significant Deficiencies a. Yes Yes b. Yes No c. No Yes d. No No
b.
In performing a test of controls, the auditors vouch a sample of entries in the purchases journal to the supporting documents. Which assertion would this test of controls most likely test? a. Completeness. b. Existence. c. Valuation. d. Rights.
b.
In testing plant and equipment balances, an auditor may select recorded additions in the analysis of plant and equipment and inspect the actual asset(s) involved. Which management assertion is this procedure most directly related to? a. Completeness. b. Existence. c. Rights. d. Valuation.
b.
Our client uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end. % Balance Uncollectible Total $375,000 0-30 $222,000 1% 31-60 $90,000 4% 61-90 $38,000 5% 91-120 $10,000 6% > 120 $15,000 10% Calculate the total estimated bad debts based on the above information. a. $97,500 b. $9,820 c. $19,800 d. $15,000
b.
Subsequent to the issuance of the auditor's report, the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts. After determining that the information is reliable, the auditor should next: a. Notify the board of directors that the auditor's report must no longer be associated with the financial statements. b. Determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information. c. Request that management disclose the effects of the newly discovered information by adding a footnote to subsequently issued financial statements. d. Issue revised pro forma financial statements taking into consideration the newly discovered information.
b.
The auditors' program for the examination of long-term debt should include steps that require the: a. Verification of the existence of the bondholders. b. Examination of copies of debt agreements. c. Inspection of the accounts payable subsidiary ledger. d. Investigation of credits to the bond interest income account.
b.
The primary objective of a CPA's observation of a client's physical inventory count is to: a. Discover whether a client has counted a particular inventory item or group of items. b. Obtain direct knowledge that the inventory exists and has been properly counted. c. Provide an appraisal of the quality of the merchandise on hand on the day of the physical count. d. Allow the auditor to supervise the conduct of the count in order to obtain assurance that inventory quantities are reasonably accurate.
b.
The type of engagement that provides assurance as to whether some subject matter, or an assertion about the subject matter, is in accordance with suitable criteria is an a. Consulting engagement. b. Attestation engagement. c. Audit engagement. d. Assurance engagement.
b.
When performing a financial type of audit for a governmental entity auditors generally do not report on: a. internal control. b. economy and efficiency. c. compliance with laws and regulations. d. whether generally accepted accounting principles have been followed.
b.
Which assertion relating to sales is most directly addressed when the auditors compare a sample of shipping documents to related sales invoices? a. Existence or occurrence. b. Completeness. c. Rights and obligations. d. Presentation and disclosure.
b.
Which of the following best describes the internal auditing function? a. A function that adds credibility to the financial information provided to third parties. b. A part of the organization's monitoring controls. c. An integral part of the accounting system of an organization. d. A fraud prevention function.
b.
Which of the following is defined as a weakness in internal control that allows a reasonable possibility of a misstatement that is material? a. Control deficiency. b. Material weakness. c. Reportable condition. d. Significant deficiency.
b.
Which of the following is not among the criteria that ordinarily exist for revenue to be recognized? a. Collectibility is reasonably assured. b. Delivery has occurred or is scheduled to occur in the near future. c. Persuasive evidence of an arrangement exists. d. The seller's price to the buyer is fixed or determinable.
b.
Which of the following is the best audit procedure for the discovery of damaged merchandise in a client's ending inventory? a. Compare the physical quantities of slow-moving items with corresponding quantities in the prior year. b. Observe merchandise and raw materials during the client's physical inventory taking. c. Review the management's inventory representations letter for accuracy. d. Test overall fairness of inventory values by comparing the company's turnover ratio with the industry average.
b.
Which of the following procedures is least likely to be completed before the balance sheet date? a. Confirmation of receivables. b. Search for unrecorded liabilities. c. Observation of inventory. d. Review of internal accounting control over cash disbursements.
b.
A proper compilation report on financial statements that omit note disclosures: a. Includes an adverse opinion. b. Includes a disclaimer of opinion on the accuracy of such note disclosures. c. Indicates that management has omitted such information. d. Indicates that note disclosures are not necessary for those not informed about such matters.
c.
A typical objective of an operational audit is for the auditors to: a. determine that the financial statements fairly present the entity's operating results. b. evaluate the feasibility of achieving the entity's operational objectives. c. make recommendations for improving performance. d. report on the entity's success in maximizing profits.
c.
An auditor accepted an engagement to audit the 20X8 financial statements of EFG Corporation and began the fieldwork on September 30, 20X8. EFG gave the auditor the 20X8 financial statements on January 17, 20X9. The auditor completed the audit on February 10, 20X9, and delivered the report on February 16, 20X9. The client's representation letter normally would be dated: a. December 31, 20X8. b. January 17, 20X9. c. February 10, 20X9. d. February 16, 20X9.
c.
An effective procedure for identifying unrecorded retirements of equipment is to: a. Foot related property records. b. Recalculate depreciation on the related equipment. c. Select items of equipment in the accounting records and then locate them in the plant. d. Select items of equipment and then locate them in the accounting records.
c.
An internal auditor's independence is most likely to be assured if she reports to the: a. president. b. controller. c. audit committee of the board of directors. d. treasurer
c.
For the audit of a continuing nonpublic client, the emphasis of the testing for property accounts is on: a. All transactions resulting in the ending balance. b. Tests of controls over disposals. c. Transactions that occurred during the year. d. Performing analytical procedures on beginning balances of the accounts.
c.
Most assurance engagements are also considered a. Assembly services. b. Compilations. c. Attestation engagements. d. Audits.
c.
The auditors identified a material weakness in internal control in August. The client was informed and the client corrected the material weakness prior to year-end (December 31); the auditors concluded that management eliminated the material weakness prior to year-end. The appropriate audit report on internal control is: a. Adverse. b. Qualified. c. Unqualified. d. Unqualified with explanatory language relating to the material weakness.
c.
The practitioner may perform an attest engagement only if he or she has reason to believe that the a. Independence standards have been maintained by all practitioners within the client's controllership function. b. Engagement is to be performed by a practitioner having adequate knowledge in the subject matter. c. Subject matter is capable of evaluation against an assertion available to users. d. Report to be issued is to be made publicly available.
c.
The proper report by an auditor relating to summarized financial statements includes: a. A statement about the type of opinion expressed in the prior year. b. An adverse opinion. c. An opinion on whether the summarized information is fairly stated in all material respects in relation to the basic financial statements. d. No assurance on the information.
c.
The receiving department is least likely to be responsible for the: a. Determination of quantities of goods received. b. Detection of damaged or defective merchandise. c. Preparation of a shipping document. d. Transmittal of goods received to the store's department.
c.
The search for unrecorded liabilities for a public company includes procedures usually performed through the: a. Day the audit report is issued. b. End of the client's year. c. Date of the auditors' report. d. Date the report is filed with the SEC.
c.
To assure accountability for fixed asset retirements, management should implement an internal control that includes: a. Continuous analysis of miscellaneous revenue to locate any cash proceeds from the sale of plant assets. b. Periodic inquiry of plant executives by internal auditors as to whether any plant assets have been retired. c. Utilization of serially numbered retirement work orders. d. Periodic observation of plant assets by the internal auditors.
c.
To determine that each voucher is submitted and paid only once, when a payment is approved, supporting documents should be canceled by the: a. Authorized members of the audit committee. b. Accounting department. c. Individual who signs the checks. d. Chief executive officer.
c.
Which of the following events occurring on January 5, 20X2, is most likely to result in an adjusting entry to the 20X1 financial statements? a. A business combination. b. Early retirement of bonds payable. c. Settlement of litigation. d. Plant closure due to a strike.
c.
Which of the following explanations most likely would satisfy an auditor who questions management about significant debits to the accumulated depreciation accounts? a. The prior year's depreciation expense was erroneously understated. b. Overhead allocations were revised at year-end. c. Plant assets were retired during the year. d. The estimated remaining useful lives of plant assets were revised upward.
c.
Which of the following is least likely to be among the auditors' objectives in the audit of inventories and cost of goods sold? a. Determine that the valuation of inventories and cost of goods sold is arrived at by appropriate methods. b. Determine the existence of inventories and the occurrence of transactions affecting cost of goods sold. c. Establish that the client includes only inventory on hand at year-end in inventory totals. d. Establish the completeness of inventories.
c.
Which of the following is least likely to be an audit objective for debt? a. Determine the existence of recorded debt. b. Establish the completeness of recorded debt. c. Determine that the client has rights to receive proceeds relating to the redemption of debt. d. Determine that the valuation of debt is in accordance with generally accepted accounting principles.
c.
Which of the following is not considered an attestation service? a. Examinations. b. Agreed-upon procedures c. Tax advisory services. d. Review.
c.
Which of the following is not one of the Attribute Standards of the IIA's Standards for the Professional Practice of Internal Auditing? a. Independence and objectivity. b. Disclosure of noncompliance. c. Working papers. d. Proficiency and due professional care.
c.
Which of the following is not typically performed when the auditors are performing a review of client financial statements? a. Analytical procedures applied to financial data. b. Inquiries about significant subsequent events. c. Confirmation of accounts receivable. d. Obtaining an understanding of accounting principles followed in the client's industry.
c.
A material weakness is a control deficiency (or combination of control deficiencies) that results in a reasonable possibility that a misstatement of at least what amount will not be prevented or detected? a. Any amount greater than zero. b. A greater amount than zero, but an amount that is at least inconsequential. c. A greater amount than inconsequential. d. A material amount.
d.
A procedure that involves tracing a transaction from origination through the company's information systems until it is reflected in the company's financial report is referred to as a(n): a. Analytical analysis. b. Substantive test. c. Test of a control. d. Walk-through.
d.
An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a: a. credit to Allowance for Doubtful Accounts for $4,000 b. debit to Bad Debts Expense for $4,000 c. debit to Allowance for Doubtful Accounts for $2,800 d. debit to Bad Debts Expense for $2,800
d.
An engagement in which specified users agree with the CPAs on the procedures to be performed is: a. only allowable under engagements related to not-for-profit organizations. b. a form of special audit engagement. c. considered unethical under the professional standards. d. referred to as an agreed-upon procedures engagement.
d.
As a result of analytical procedures, the independent auditors determine that the gross profit percentage has declined from 30 percent in the preceding year to 20 percent in the current year. The auditors should: a. Express an opinion that is qualified due to the inability of the client company to continue as a going concern. b. Evaluate management's performance in causing this decline. c. Require note disclosure. d. Consider the possibility of a misstatement in the financial statements.
d.
Auditor confirmation of accounts payable balances at the balance sheet date may be unnecessary because: a. This is a duplication of cutoff tests. b. Accounts payable balances at the balance sheet date may not be paid before the audit is completed. c. Correspondence with the audit client's attorney will reveal all legal action by vendors for nonpayment. d. There is likely to be other reliable external evidence available to support the balances.
d.
Financial statements prepared following which of the following are most likely to be considered a special-purpose financial reporting framework? a. Generally accepted accounting principles. b. International Financial Reporting Standards. c. Financial reporting standards of a foreign nation. d. The cash basis of accounting.
d.
The CPAs' examination report on a financial forecast should include all of the following except: a. A statement that the report will not be updated for future events. b. An indication that the CPAs' examination was in accordance with standards developed by the AICPA. c. Whether the assumptions provide a reasonable basis for the forecast. d. The estimated probability of achieving the forecast results.
d.
The auditors may conclude that depreciation charges are insufficient by noting: a. Insured values greatly in excess of book values. b. Large amounts of fully depreciated assets. c. Continuous trade-ins of relatively new assets. d. Excessive recurring losses on assets retired.
d.
The least likely approach in auditing management's estimate relating to an accrued liability is to: a. Independently develop an estimate of the amount to compare to management's estimate. b. Review and test management's process of developing the estimate. c. Review subsequent events or transactions bearing on the estimate. d. Send confirmations relating to the estimate.
d.
Using the allowance method, the uncollectible accounts for the year is estimated to be $35,000. If the balance for the Allowance for Doubtful Accounts is a $9,000 debit before adjustment, what is the amount of bad debt expense for the period? a. $26,000 b. $9,000 c. $35,000 d. $44,000
d.
Which of the following accounts should be reviewed by the auditors to gain reasonable assurance that additions to property, plant, and equipment are not understated? a. Depreciation. b. Accounts Payable. c. Cash. d. Repairs.
d.
Which of the following forms of accountant association always leads to a report intended solely for certain specified parties? a. Compilation. b. Review. c. Examination. d. Agreed-upon procedures.
d.
Which of the following is least likely to be considered a substantive procedure relating to payroll? a. Investigate fluctuations in salaries, wages, and commissions. b. Test computations of compensation under profit sharing for bonus plans. c. Test commission earnings. d. Test whether employee time reports are approved by supervisors.
d.
Which of the following is the best audit procedure for determining the existence of unrecorded liabilities? a. Examine confirmation requests returned by creditors whose accounts appear on a subsidiary trial balance of accounts payable. b. Examine unusual relationships between monthly accounts payable balances and recorded purchases. c. Examine a sample of invoices a few days prior to and subsequent to year-end to ascertain whether they have been properly recorded. d. Examine selected cash disbursements in the period subsequent to year-end.
d.
Which of the following need not be included in management's report on internal control under Section 404(a) of the Sarbanes-Oxley Act of 2002? a. A statement that the company's auditors have issued an attestation report on management's assertion. b. An identification of the framework used for evaluating internal control. c. Management's assessment of the effectiveness of internal control. d. Management's acknowledgment of its responsibility to establish and maintain internal control that detects all significant deficiencies.
d.
Which of the following procedures is most likely to be included in the final review stage of an audit? a. Obtain an understanding of internal control. b. Confirmation of receivables. c. Observation of inventory. d. Perform analytical procedures.
d.
Which of the following questions would an auditor most likely include on an internal control questionnaire for notes payable? a. Are assets that collateralize notes payable critically needed for the entity's continued existence? b. Are two or more authorized signatures required on checks that repay notes payable? c. Are the proceeds from notes payable used for the purchase of noncurrent assets? d. Are direct borrowings on notes payable authorized by the board of directors?
d.
Which of the following would most likely be detected by an auditor's review of the client's sales cutoff? a. Excessive goods returned for credit. b. Unrecorded sales discounts. c. Lapping of year-end accounts receivable. d. Inflated sales for the year.
d.
Which of the following would provide the most assurance concerning the valuation of accounts receivable? a. Trace amounts in the accounts receivable subsidiary ledger to details on shipping documents. b. Compare receivable turnover ratios to industry statistics for reasonableness. c.Inquire about receivables pledged under loan agreements. d. Assess the allowance for uncollectible accounts for reasonableness.
d.