A Forensic Audit in an Organisation with an Electronic Environment

question 14

Multiple Choice

A forensic audit in an organisation with an electronic environment may feature:

• A) investigating employee emails and addresses, log-on times and messages.
• B) searching for duplicate numbers of payments or receipts.
• C) scanning lists of suppliers.
• D) all of the above.

Apply concepts of corporate liability and the protection of personal liability in business formation.

Differentiate between S corporations and other forms of business entities concerning taxation and shareholder liabilities.

Analyze the role and legal implications of corporate promoters and subscribers.

Comprehend the structure and importance of corporate bylaws in internal management.

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Definitions:

Commercial Substance

A characteristic of a business transaction where the risk, timing, or amount of future cash flows of the assets or liabilities of the entity will change as a result of the transaction.

Temporary Difference

Refers to differences between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in taxable or deductible amounts in future periods.

Straight Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Capital Cost Allowance

A tax deduction in Canada for the depreciation of tangible property.