According to Professional Auditing Standards,which of the Following Best Represents

question 94

Multiple Choice

According to professional auditing standards,which of the following best represents a type of fraudulent financial reporting?

• A)Management accrues a liability and discloses the possible outcome of a lawsuit prior to settling the matter.
• B)Management reclassifies a negative cash balance by decreasing cash and increasing a current liability.
• C)Management discloses its failure to meet loan covenants but states that a waiver has been received.
• D)Management intentionally excludes from its consolidated results a subsidiary that it controls significantly.

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Definitions:

Eye-Movement Desensitization

A psychotherapy technique, often used to treat PTSD, that alleviates distress associated with traumatic memories through guided eye movements.

Exposure

The act of being subject to an influence or experiencing a condition, often used in contexts like therapy, where individuals face their fears or stressors.

Significantly More Effective

This term refers to interventions or treatments that have proven to be far better in achieving desired outcomes compared to others.

Generalized Anxiety Disorder

A chronic disorder characterized by excessive, long-lasting anxiety and worry about nonspecific life events, objects, and situations.