ACCT 562 Week 2 Quiz Answers

Question (TCO B) One of the primary purposes of the planning phase is to: Question (TCO B) Information obtained during the course of planning includes: Question (TCO B) Sources of planning information comes from all of the following EXCEPT: Question (TCO B) Problem areas should be identified. The auditor is encouraged to chase the ___________, not the _________________. Question (TCO F) According to a study by COSO, which of the following groups is the most likely to commit financial statement fraud? Question (TCO F) The conceptual framework for financial reporting includes several assumptions that underlie generally accepted accounting principles. Which of the following is one of these assumptions? Question (TCO F) Which of the following is a duty of the Public Company Accounting Oversight Board? Question (TCO F) Scott Ruskin is the CEO of Decatur Materials. The company has been struggling for the last few years and is in danger of defaulting on several of its bank loan covenants. Scott is facing significant pressure from the board of directors to turn the company around. Unless he meets all of the financial goals for the year, he will be out the door without a golden parachute. To improve the financial appearance of the company, Scott undertakes a scheme to boost the balance sheet by faking inventory. The analysis of what financial ratio would most likely bring this scheme to light? Question (TCO F) Establishing clear and uniform accounting procedures with no exception clauses can help reduce financial statement fraud by addressing which side of the fraud triangle? Question (TCO F) The technique for analyzing the percentage change in individual financial statement items from one accounting period to the next is known as: