Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Management Expert

1. The responsibility for designing and maintaining policies and procedures to identify, evaluate, and account for contingencies rests with whom?

  • management.
  • auditor.
  • audit committee.
  • client's attorney.

2. When a subsequent event provides evidence about conditions that did not exist at the balance sheet date, the auditor should do which of the following?

  • ensure that any necessary footnote disclosures be included with the statements.
  • ensure that the financial statements are adjusted to reflect the information, including any necessary footnote disclosures.
  • give an inappropriate opinion.
  • provide management with a new engagement letter to document the terms of the revised arrangement.

3. The driver of audit quality under the Financial Reporting Council's Audit Quality Framework that relates to audit methodology and tools applied to the audit is which of the following?

  • audit firm culture.
  • reliability and usefulness of audit reporting.
  • effectiveness of the audit process.
  • factors outside the control of auditors.

4. Where would the auditor make mention of issues noted during audit procedures that are not of audit significance?

  • Engagement letter.
  • Management letter.
  • Representation letter.
  • Attorney letter.

5. If the auditor concludes that there may be a going concern problem, the auditor should do which of the following?

  • withdraw from the engagement.
  • issue a qualified or adverse opinion.
  • identify and assess management's plan to overcome the problem.
  • communicate this fact with management one level above the controller.

6. For registration statements filed with the SEC preparatory to selling securities, the subsequent events review goes from

  • the balance sheet date to the date the audit report is issued.
  • the balance sheet date to the end of field work.
  • the balance sheet date to the date of subsequent discovery of omitted procedures.
  • the balance sheet date to the effective date of the registration statement.

7. Management of Megadile, Inc. refuses to sign the management representation letter given to them in the course of the audit on the grounds that it invades the company's privacy. Such actions will be considered by the auditors to be

  • a violation of full and fair disclosure.
  • securities law violation.
  • a scope limitation.
  • a breakdown in internal controls.

8. When a subsequent event provides evidence about conditions that existed at the balance sheet date, the auditor should do which of the following?

  • assign a specialist.
  • ensure that the financial statements are adjusted to reflect the information, including any necessary footnote disclosures.
  • shop for an opinion that fits the desired type of event.
  • provide management with a new engagement letter to document the terms of the revised arrangement.

9. A legal concept that is not significant to the doctrine of privity is that of

  • negligence.
  • ultramares.
  • scienter.
  • engagement letters.

10. In a lawsuit brought under the Securities Act of 1933, which of the following must the plaintiff show?

  • Reliance on financial statements.
  • Auditors guilt.
  • Due diligence.
  • That a loss was sustained.

11. Which of the following terms refers to an intentional concealment or misrepresentation of a material fact that causes damage to those deceived?

  • gross negligence.
  • fraud.
  • ordinary negligence.
  • breach of contract.

12. The Securities Exchange Act of 1933 places the burden of proof on which of the following?

  • third-party plaintiff.
  • attorney defendant.
  • auditor defendant.
  • client plaintiff.

13. An example of a case that subjected an auditor to criminal charges is

  • the McKesson & Robbins case.
  • the Citizens Timm case.
  • the Bily v. Arthur Young & Co. case.
  • the Equity Funding case.

14. In order to reduce the auditor's liability exposure, engagement letters should include which of the following?

  • a clearly stated scope of the work to be done.
  • a statement that a trial by jury is acceptable.
  • the guaranteed fee structure for the engagement.
  • a statement that the auditor is not liable to the SEC.

15. When the client and the auditor are both sued and judgment is rendered against both, the auditor will be required to settle the entire judgment if the client is bankrupt. Which of the following is a representation of the above?

  • Private Litigation Reform.
  • Joint and several liability statutes.
  • Comparative fraud.
  • The Securities Acts.

16. Which aspect of statutory law places the burden of proof onto the auditor?

  • Scienter.
  • Securities Act of 1933.
  • Joint and Several Liability.
  • Ultramares.

17. The court case that established the precedent that an auditor can be held liable to third parties for fraud and gross negligence, but limited auditor liability for ordinary negligence to those who are in privity of contract, is the

  • McKesson and Robbins case.
  • 1136 Tenants Corporation case.
  • CIT Financial Corporation case.
  • Ultramares Corporation case.

18. The adjustments arising from the audit that were considered to be material should be informed by the auditor to the:

  • audit staff.
  • management.
  • audit committee.
  • internal auditors.

19. The primary scope of services performed in external auditing (CPA) is:

  • risk analysis.
  • control analysis.
  • operations analysis.
  • audit of financial statements.

20. The primary scope of services performed in external auditing (CPA) is:

  • risk analysis.
  • control analysis.
  • operations analysis.
  • audit of financial statements.

21. The partial or complete outsourcing of internal audit activities is made to public accounting firms or to other specialized firms that perform which of the following types of services?

  • primarily risk, control, and audit activities.
  • attestation services as demanded by market place.
  • operations analysis and risk analysis.
  • analytical and substantial procedures.

22. External assurance over sustainability reports must be provided by which of the following:

  • Certified Public Accountants in conjunction with the annual financial audit.
  • those with competence in the subject matter and assurance practices.
  • Certified Sustainability Experts.
  • individuals that are not independent with the company issuing the sustainability report.

23. Which method focuses on the materiality of current year misstatements and the reversing effect of prior-year misstatements on the income statement?

  • Rollover method
  • Iron curtain method
  • Percentage approach
  • Judgmental method

24. The two general types of assurance that can be provided to sustainability reports include which of the following:

  • Reasonable assurance and Limited assurance.
  • Material assurance and Reasonable assurance.
  • Limited assurance and material assurance.
  • Reasonable assurance and Compliance assurance

25. Which of the following is needed by a client while estimating fair value?

  • A systematic process to identify each asset that is subject to realizable value or at cost.
  • A process to identify relevant historical values.
  • An analysis of whether the organization has the ability to hold the asset to maturity and whether the decline in value is permanent.
  • A realistic process to estimate future cash flows to discount back to a present value.

26. For the same client, SEC prohibits a CPA firm from providing which of the following services?

  • tax and external audit services
  • internal and external audit services.
  • management letter and audit services.
  • internal control and financial statement audits.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M91594721
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question?


Related Questions in Business Management

What are the biggest challenges costco will experience in

What are the biggest challenges Costco will experience in trying to expand globally?

A manager could affect intrinsic satisfaction through a

"A manager could affect intrinsic satisfaction through a number of strategies such as positive reinforcement, shaping, goal setting, evaluation, monitoring, and challenging. I believe the more feedback and encouragement ...

The following few machines are given informal

The following few machines are given informal descriptions. Decide whether they are of CISC or of RISC design, and provide a short description of why. a) Machine A has over 300 instructions, many of which are executed at ...

With more persons working from home how does one separate

With more persons working from home, how does one separate data intended for the employer form what might be considered personal property? What policies could be put in place to ensure employees adhere to safe guidelines ...

Paper training and developmentyou will apply what you have

Paper: Training and Development You will apply what you have learned about the use of training to make improvements in employee performance in support of organizational objectives. Select an organization that you are fam ...

1 correct the following statements if needed so that terms

1. Correct the following statements, if needed, so that terms "demand', "quantity demanded", are used correctly. Write down the correct sentence. a. As price of pizza increases, consumers demand less pizza b. An increase ...

How peoples upbringing and values when faced with an

How people's upbringing and values when faced with an ethical decision, whether it is in a business environment or not. How are our beliefs the same as or different than those of our parents or birth community? Has knowl ...

1 describe in one paragraph your interpretation of the

1. Describe in one paragraph your interpretation of the strategy in place at the Walt Disney Company. Next, describe the vertical integration and complementary assets in place at the company. Provide examples. 2. Using t ...

With an emphasis on some of the security ethical and

With an emphasis on some of the security, ethical, and societal challenges of IT in the business world. Please discuss a real-world example/application of an organization that has dealt with crimes including hacking, cyb ...

When in your life have you been motivated by external

When in your life have you been motivated by external factors like rewards, money, or promotion?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As