The Auditor Should Obtain Sufficient Appropriate Evidence for Material Amounts

question 88

Multiple Choice

The auditor should obtain sufficient appropriate evidence for material amounts and disclosures in the financial statements that are determined by laws and regulations that have a direct impact on the financial statements.Examples include

• A)SEC reporting requirements for public companies
• B)FASB reporting requirements for public companies
• C)industry specific management reporting issues
• D)recording transactions under government contracts,including the amount of revenue to be accrued
• E)the accrual and recognition of income tax and pension expense
• F)both A and B
• G)both A and E
• H)both C and D

Define white-collar crimes and distinguish them from other crimes.

Understand the principles and applications of the Sarbanes-Oxley Act and other laws concerning document destruction and corporate fraud.

Understand the concept of functional (constructive) conflict and its benefits.

Recognize the causes and development stages of conflict.

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Definitions:

Brain's Cortex

The outer layer of the cerebrum, involved in high-level brain functions such as thought, language, memory, and consciousness.

Endorphins

Natural chemicals in the body that interact with brain receptors to reduce pain and stimulate feelings of pleasure or euphoria.

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants, which is highly addictive and illegal.

Effects

Changes that result from specific actions or causes.