Financial Statement Restatements

question 60

Multiple Choice

Financial statement restatements:

• A) are a strong indicator of material weakness in ICFR when they are undertaken for the purpose of correcting an error in previously issued financial statements.
• B) may not be considered significant when they are the result of more evidence becoming available after the financial statements have been released.
• C) are required to be disclosed in the financial reports, as well as in the financial press.
• D) All of the above.

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Definitions:

Medicare

A federal program that provides for (1) compulsory hospital insurance for senior citizens, (2) low-cost voluntary insurance to help older Americans pay physicians’ fees, and (3) subsidized insurance to buy prescription drugs. Financed by payroll taxes.

Social Security

The social insurance program in the United States financed by federal payroll taxes on employers and employees and designed to replace a portion of the earnings lost when workers become disabled, retire, or die.

Medicaid

A federal program that helps finance the medical expenses of individuals covered by the Supplemental Security Income (SSI) and Temporary Assistance for Needy Families (TANF) programs.

Low-income Workers

Individuals employed in jobs that pay wages below a certain threshold, often struggling to meet basic living expenses.