According to SAS 54, the Auditor's Responsibility for Illegal Acts

question 18

Multiple Choice

According to SAS 54, the auditor's responsibility for illegal acts having a direct and material effect on the determination of financial statement amounts is:

• A) greater than for errors or fraud.
• B) the same as it is for errors or fraud.
• C) less than it is for errors or fraud.
• D) different for direct-effect illegal acts and other types of illegal acts.
• E) restricted to information that comes to his attention.

Distinguish between reliability and validity in the context of measurement instruments.

Acknowledge the necessity of voluntary participation in research studies.

Differentiate between qualitative and quantitative research methods.

Grasp the nature of inductive and deductive reasoning in the development of sociological theories and research.

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Definitions:

FASB

The Financial Accounting Standards Board, which is responsible for establishing and improving financial accounting and reporting standards in the United States.

IASB

The International Accounting Standards Board, an independent body that establishes and approves accounting standards.

Allowance For Doubtful Accounts

An accounting concept referring to a reserve for accounts receivable that may not be collectible.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding to manage and track debts.