Acc 550 exam - Study guides, Class notes & Summaries

what is the most costly type of fraud - ANSWER financial reporting fraud Can fraud be eliminated? - ANSWER no how does one distinguish between error and fraud? - ANSWER Intent who is responsible for preventing and detecting fraud - ANSWER management and those charged with governance

Indications of noncompliance - ANSWER 1) Investigation by governmental agency 2) Violations cited by regulators 3) Unusually large payments made in cash 4) Unexplained payments of gov't officials 5) Improperly recorded transactions 6) Purchasing prices significantly above/below market 7) Adverse media comment 8) Payments to registered tax havens What steps should an auditor take when noncompliance is identified or suspected? - ANSWER 1) Obtain understanding of the nature of the act and...

ACC 550 Final Exam Solution Manual Already Passed Per auditing standards, what are the 6 categories of laws and regulations? - Answers 1) Direct 2) Do not have direct effect 3) Low impact 4) High impact 5) Direct & do not have direct effect 6) Low & high Two categories of laws and regulations with regards to the financial statements? - Answers 1) Direct effect on financial statements 2) Do not have direct effect on financial statements Explain the direct effect on finan...

Purpose of Audit Documentation - Biggest Reason - ANSWER evidence of the auditor's basis for a conclusion evidence the audit was planned and performed in accordance with GAAS & applicable legal & regulatory requirements Additional purposes of audit documentation - ANSWER assist in planning and performing engagement assist in engagement review and supervision demonstrate accountability for work performed retain record matters for future audits enable quality control reviews enable exte...

Physics 1603 Exam Chapter 5-7 exam Review questions and answers 2024 You and your friend, who weighs the same as you, want to go to the top of the Eiffel Tower. Your friend takes the elevator straight up. You decide to walk up the spiral stairway, taking longer to do so. Compare the gravitational potential energy of you and your friend, after you both reach the top. - ANSWER Both of you have the same amount of gravitational potential energy at the top. A stone can slide down one of f...

What company's CEO was named Business Week's CEO of the year for 2001? - ANSWER TYCO CEO, DENNIS KOZLOWSKI What CEO said, "We are the good guys. We are on the side of angels"? - ANSWER Jeffrey Skilling, Enron What companies' CFOs were named CFO of the year for 1999, 2000, and 2001 by CFO magazine? - ANSWER Enron, Worldcom, Tyco

the omission or misstatement of an item in a financial report is material if, in the light of surrounding circumstances, the magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would have be been changed or influenced by the inclusion or correction of the item - ANSWER What is materiality? a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly al...

planning the audit, how does materiality play a role? - ANSWER materiality is a matter of professional judgement, determine materiality for financial statements as a whole, provides basis for: nature and extent of risk assessment procedures, ID risks of material misstatement, determine procedures how to determine materiality - ANSWER start with a firm provided benchmark, adjust for qualitative concerns

Why is the PCAOB's audit documentation retention requirement longer than AICPA & ISA? - ANSWER It takes longer for litigation to form for public companies, so PCAOB wanted the longer time frame in order to have the documentation when needed. Report Release Date - ANSWER date auditor grants permission to use the auditor's report

which of the following audit committee activities is of the greatest benefit to internal audit activity? a. review and endorsement of all internal auditing engagement communications prior to their release b. assurance that the external auditor will rely on the work of the internal audit activity whenever possible c. review and approval of engagement work programs d. determine whether scope limitations impede the ability of the internal audit activity to execute its responsibilities - ANS...