What does the report say about improper accounting?
The report said that much of the improper accounting dated back to 2008, was intentional and would have been difficult for auditors to detect. Or that experts found that ' improper accounting procedures were continuously carried out as a de facto policy of the management'?
Are improper accounting procedures a de facto policy of Management?
Or that experts found that ' improper accounting procedures were continuously carried out as a de facto policy of the management'? The settlement, which awaits court approval, relates to lawsuits by shareholders and others alleging improper accounting for an off-balance-sheet partnership.
How should the cumulative effect of the accounting change be reported?
The cumulative effect of the accounting change should be reported by Columbia in its 2017 (LO 1) (a)retained earnings statement as a $1,740,000 addition to the beginning balance. (b)income statement as a $2,320,000 cumulative effect of accounting change. (c)retained earnings statement as a $638,000 addition to the beginning balance.
When should a change in accounting estimate be accounted for?
A change in an accounting estimate should always be accounted for in current and future periods. 10. When a company changes from an accelerated method to the straight-line method of depreciation, this change should be handled as a (LO 2) (a)change in accounting principle.
Which of the following is an example of improper accounting treatment?
Which of the following is an example of improper accounting treatment? Transfers of goods from related companies might be improperly recorded as sales.
Which of the following does inappropriate revenue recognition relate to?
financial reportingRevenue recognition is related to financial reporting. Inappropriate revenue recognition can occur if the revenue is not recognized in the financial statements as per the correct time and value.
Which of the following circumstances is most likely to cause an auditor to consider whether a material misstatement exists?
Which of the following circumstances is most likely to cause an auditor to consider whether a material misstatement exists? Transactions selected for testing are not supported by proper documentation.
Which of the following is a category of risk factors that should be considered when assessing risk of misstatements arising from misappropriation of assets?
Lack of job applicant screening procedures relating to employees with access to assets susceptible to misappropriation. Inadequate record keeping within respect to assets susceptible to misappropriation. Lack of appropriate segregation of duties or independent checks.
What is improper revenue recognition?
Improper timing of revenue recognition occurs when a company inappropriately shifts revenue from one period to another. Most commonly, companies inappropriately accelerate revenue recognition in order to meet their earnings targets.
What is the misappropriation of assets?
Asset misappropriation can be defined as using company or client assets for personal gain. This is also known as “stealing.” There are two main categories of asset misappropriation: cash and noncash.
Which of the following circumstances most likely would cause an auditor to suspect that there are material misstatements in an entity's financial statements?
Which of the following circumstances most likely would cause the auditor to suspect that there are material misstatements in the entity's financial statements? Significant differences between the physical inventory count and the accounting records are not investigated.
Which of the following situations represents a risk factor that relates to misstatements arising from misappropriation?
Which of the following situations represents a risk factor that relates to misstatements arising from misappropriation of assets? A lack of independent checks. Which of the following procedures is the auditor most likely to perform after accepting an initial audit engagement?
Which of the following circumstances most likely would cause an auditor to suspect that material misstatements exist in a client's financial statements?
Which of the following circumstances most likely will cause an auditor to suspect that material misstatements exist in a client's financial statements? Differences between reconciliations of control accounts and subsidiary records are not investigated.
Which of the following is generally a cause of intentional misstatements in the financial statements?
Which of the following is generally a cause of intentional misstatements in the financial statements? A common cause for intentional misstatements is pressure to meet analyst expectations.
Which of the following are components of the risk of material misstatement?
Risk of material misstatement is defined as 'the risk that the financial statements are materially misstated prior to audit. This consists of two components... inherent risk ... control risk.
Which characteristics would concern an auditor about the risk of material misstatements arising?
In risk assessment, auditors consider the following risks:Fraud risk. ... Economic, accounting risk, or other developmental risks. ... Complex transactions. ... Significant transactions with related parties. ... Degree of subjectivity in measurement.Non-routine transactions.
What is the violation of the accounting concept of LO 1?
Accounting changes are often made and the monetary impact is reflected in the financial statements of a company even though, in theory, this may be a violation of the accounting concept of (LO 1) (a)materiality. (b)consistency. (c)faithful representation.
Is opening balance adjusted?
Opening balances are not adjusted and no attempt is made to "catch up" for prior periods. The effects of all changes in estimates are accounted for in (a) the period of change if the change affects that period only or (b) the period of change and future periods if the change affects both. ... Changes in Estimates.
