Which of the Following Is the Most Effective Method of Identifying

question 34

Multiple Choice

Which of the following is the most effective method of identifying potential earnings management attempts?

• A)Analytical procedures.
• B)Detailed substantive procedures.
• C)Inquiry of client management and key financial personnel.
• D)Scanning accounts for unusual items.

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Definitions:

Skid Mark

A mark that a tire leaves on the road when it is in a locked mode, that is, when the tire is not turning, but the car is continuing to move.

Miles Per Hour

A unit of speed expressing the number of miles traveled in one hour, commonly used to measure the speed of vehicles in the United States and the United Kingdom.

Feet And Inches

Units of measurement used primarily in the United States for length, where 1 foot equals 12 inches.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal amount each year.