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Auditing chapter 2 Pre Quiz

Kayla Harbaugh 10 Fragen

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Fragen in diesem Quiz (10)

  1. 1What is the primary difference between fraud and error in financial statement reporting?
    1. AThe level of management involved
    2. BThe type of transaction effected
    3. CThe intent to deceive
    4. DThe materiality of the misstatement
  2. 2Which of the following is a common rationalization for fraudulent financial reporting?
    1. AThis is a one-time transaction and it will allow the company to get through the current financial crisis, but I'll never do it again.
    2. BNo-one will be hurt if I take some inventory for personal use. No-one will even know.
    3. CI am only borrowing the money; I will pay it back next year.
    4. DExecutives at other companies are getting paid more than I am, so I deserve the money.
  3. 3Which of the following types of transactions did WorldCom management engage in as part of that company's fraudulent financial reporting scheme?
    1. ARecorded barter transactions as sales
    2. BUsed restructuring reserves from prior acquisitions to decrease expenses
    3. CCapitalized line costs rather than expensed them
    4. DAll of these
  4. 4Which of the following statements is true?
    1. AUnless an independent audit can provide reasonable assurance that financial information has not been materially misstated because of fraud, it has little, if any, value to society.
    2. BRepeated revelations of accounting scandals and audit failures related to undetected frauds have seriously damaged public confidence in external auditors
    3. CA strong ethical tone at the top of an organization that permeates corporate culture is essential in mitigating the risk of fraud
    4. DAll of these
    5. ENone of these
  5. 5Refer to Exhibit 2.5. The Sarbanes-Oxley Act enacted which of the following provisions relevant to auditors and the audit opinion formulation process?
    1. AThe PCAOB was established, and it has the power to conduct inspections of public company audits.
    2. BThe lead audit partner and reviewing partner must rotate off the audit of a publicly traded company at least every 10 years.
    3. CIn the annual report, management must acknowledge that they are required to have the company's internal audit function attest to the accuracy of the annual reports.
    4. DAll of these
    5. ENone of these
  6. 6Audit committee activities and responsibilities include which of the following?
    1. ASelecting the external audit firm
    2. BApproving corporate strategy
    3. CReviewing management performance and determining compensation
    4. DAll of these
    5. ENone of these
  7. 7The three elements of the fraud triangle include incentive, opportunity, and rationalization.
    1. ARichtig
    2. BFalsch
  8. 8In the Enron fraud, one of the ways that management covered up the fraud was to shift debt off the balance sheet to SPEs.
    1. ARichtig
    2. BFalsch
  9. 9An important change resulting from the Sarbanes-Oxley Act is that auditors are no longer allowed to provide most consulting services for their public company audit clients.
    1. ARichtig
    2. BFalsch
  10. 10The term corporate governance mosaic refers to the fact that each of the parties involved in corporate governance has complementary roles and specific responsibilities; no one party is completely responsible.
    1. ARichtig
    2. BFalsch

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Beschreibung
Pre quiz Ch 2
Sprache
English
Aufrufe
29
Schlagwörter
auditingaccounting
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