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The information surrounding an event is called:a. Noiseb. Contextc. Contributiond. Calibration2. A key consideration when analyzing financial statements understands that they are:a. Representations of managementb. Representations of the external auditorc. Representations of the internal auditord. Always accurate and complete3. A financial statement fraud most often violates which of the following accounting principles?a. Matchingb. Conservatismc. Materialityd.
All of the above are often violated4. Which of the following is not a user of financial statements?a. Managementb. Creditorsc. Government agenciesd. All of the above are users of financial statements5. Which of the following implies the highest level of assurance?a. Reviewb. Compilationc. Auditd. None of the above implies assurance6. An auditor has the responsibility to plan and perform an audit to obtain _____ that the financial statements are free of material misstatement.a.
Certaintyb. Reasonable certaintyc. Absolute certaintyd. Reasonable assurance7. Each of the following is a fundamental accounting principle except:a. Continualityb. Matchingc. Materialityd. Full disclosure8. Since May 2008, privately held companies have been permitted to prepare their financial statements in accordance with IFRS.a. Trueb. False9.
The purposeful intervention in the external financial reporting process with the intent of obtaining some private gain is known as:a. Earnings regulationb. Earnings managementc. Earnings deploymentd. Earnings extrapolation10. The ability to make operational choices at year- end to enhance the appearance of a certain account is known as:a. Operational freedomb. Reporting freedomc. Management freedomd. Accounting freedom
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Concealment of assets typically occurs on a larger scale for individuals filing for bankruptcy protection than it does for businesses filing for protection.
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