Management Can Override Controls by

question 1

Multiple Choice

Management can override controls by

• A)recording fictitious journal entries (particularly at year end)
• B)appropriately changing assumptions and methods used to estimate account balances
• C)omitting,advancing,or delaying modification of events that occurred during the reporting period
• D)failing to disclose facts that could affect the amounts recorded in the financial statements
• E)engaging in complex transactions designed to represent the financial condition of the company
• F)both A and C
• G)both A and D
• H)both B and D

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Definitions:

General Agents

Individuals authorized to perform a broad range of actions on behalf of another person or entity.

Special Agents

Individuals authorized to conduct specific acts or transactions on behalf of another person or entity, with their authority typically limited to a particular or singular task.

Gratuitous Agents

Individuals who voluntarily act on behalf of someone else without receiving any compensation in return.

Capacity

The legal ability or competency of an individual or entity to enter into binding contracts, including being of legal age and sound mind.