logo
call

Chat with support 24/7

Professional Custom Essay Writing Service

Order from the best essay help service in the whole world!

...content here............

Acc505 module 6 quiz 5 (Latest)

Question

Question 1

Under Sarbanes-Oxley, chief executive officers and chief financial officers are required to personally certify annual and quarterly SEC filings.Which of the following is an item that they must certify in their  reports?

All of the above.

They have disclosed to the audit committee any material control weakness.

The financial statements were prepared in conformity with GAAP.

The company’s internal controls have prevented or detected all material instances of fraud during the last year.

Question 2

Walden Industries is being sued by a former employee for wrongful termination. It is probable that the company will lose the case and be ordered to pay the plaintiff a significant sum of money. If Walden fails to report this information somewhere in its financial statements, it is violating the GAAP concept of:

cost-benefit.

materiality.

full disclosure.

matching.

Question 3

Investigating registered public accounting firms and their employees, conducting disciplinary hearings, and imposing sanctions where justified are duties of which of the following bodies?

General Accounting Office’s Oversight Board

AICPA’s Accounting Standards Board

SEC’s Subcommittee on Corporate Governance

Public Company Accounting Oversight Board

Question 4

Senior management is most likely to understate business performance in the financial statements for which of the following reasons?

To reduce the value of an owner-managed business for purposes of a divorce settlement

To increase the value of a corporate unit whose management is planning a buyout

To comply with loan covenants

To trigger performance-related compensation or earn-out payments

Question 5

Fraudulent manipulation of the going concern assumption usually results from an organization trying to conceal its terminal business situation.

True

False

Question 6

Which of the following is a duty of the Public Company Accounting Oversight Board?

Registering accounting firms that audit publicly traded companies

Establishing or adopting standards relating to audits of publicly traded companies

Enforcing compliance with professional standards and securities laws relating to public company audits

All of the above

Question 7

Intentionally reporting product sales in the financial statements for the period prior to when they actually occurred is a violation of which generally accepted accounting principle?

Periodicity

Historical cost

Matching

Revenue recognition

Question 8

When a fraudster feeds fictitious information into the accounting system in order to manipulate reported results, this is called:

going outside the accounting system.

beating the accounting system.

playing the accounting system.

boing around the accounting system.

Question 9

The Sarbanes-Oxley Act provides that members of the audit committee may receive compensation for consulting or advisory work only if approved by a majority of the board members.

True

False

Question 10

The term “financial statement” does not include a statement of cash receipts and disbursements, because this type of presentation violates the required use of accrual accounting under GAAP.

True

False

Question 11

According to COSO’s study, Fraudulent Financial Reporting: 1998-2007, which of the following is the most likely to commit financial statement fraud?

Organized criminals

Lower-level employees

Mid-level employees

The chief executive officer and/or chief financial officer

Question 12

Which of the following is a reason that a chief executive officer might commit financial statement fraud?

To conceal the company’s true performance

To receive or increase a performance bonus

To avoid termination due to poor performance

All of the above

Question 13

Which of the following is not one of the provisions established under the Sarbanes-Oxley Act?

Code of ethics for senior financial officers

Criminal penalties for altering documents

Management assessments of internal controls

The creation of the Public Accounting Standards Board

Question 14

A company’s financial statements are the responsibility of:

the accounting department.

management.

the shareholders.

the independent auditors.

Subsection

Question 15

The preferred and easiest method of concealing liabilities and expenses is to simply fail to record them.

True

False

Question 16

Which of the following is a red flag associated with fictitious revenues?

An unusual decline in the number of days’ purchases in accounts payable

Recurring losses while reporting increasing cash flows from operations

An unusual decrease in gross margin

Several unusual and highly complex sales transactions recorded close to the period end

Question 17

While conducting the annual audit of Bluebird Company’s financial statements, Elsie Finnegan, CFE, CPA, came across some fishy findings. The company recorded several large and unusual sales at the end of the fiscal year to customers Elsie had never heard of. Further, all of these sales occurred within the company’s specialty division, which had previously been in danger of closing due to recurring losses. Based on these findings, what type of financial statement fraud is likely occurring?

Expense omission

All of the above

Unrecorded warranties

Fictitious revenues

Question 18

Staff Accounting Bulletin Topic 13, “Revenue Recognition,” indicates that revenue is considered realized or realizable and earned when four criteria are met. Which of the following is one of these criteria?

Collectability is reasonably assured.

Goods have been scheduled to be delivered or services have been scheduled to be rendered within the current fiscal period.

The seller has located alternate buyers.

All of the above.

Question 19

Capitalizing revenue-based expenses as depreciable assets will cause income to be ____________ in the current period and _______________ in future periods.

overstated; overstated

understated; overstated

understated; understated

overstated; understated

Question 20

Which of the following is not an example of financial statement fraud?

Deliberate omission of material disclosures

All of the above are examples of financial statement fraud

Falsification of material financial records, supporting documents, or business transactions

Unintentional misapplication of accounting principles

Question 21

Recurring attempts by management to justify marginal or inappropriate accounting treatments on the basis of materiality is a red flag associated with which type of financial statement fraud?

Improper disclosures

Check Our Prices

Free Quote

 

TRACK YOUR ORDER

All kinds of papers in all subject areas

We can successfully deal with all kinds of school assignments corresponding to various academic disciplines. Among these school papers are:

  • Custom essays
  • Dissertations and theses (undergraduate, Master's, PhD)
  • Research and term papers
  • Courseworks and case studies
  • Admission essays and personal statements, etc.
University of Nairobi