The Public Oversight Board Issued a Report Citing Concerns with the Audit

question 76

Multiple Choice

The Public Oversight Board issued a report citing concerns with the audit process.These concerns included all of the following except:

• A)analytical procedures were being used inappropriately to replace direct tests of account balances
• B)audit documentation,especially related to the planning of the audit,was not in compliance with professional standards
• C)auditors were ignoring warning signals of fraud and other problems
• D)all of the above were cited

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Definitions:

Double Declining Balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate, allowing for more depreciation in the early years of an asset's life.

Activity Method

An approach to calculating depreciation for an asset based on its actual usage, wear and tear, rather than an arbitrary time frame.

Depreciation Expense

Systematically dividing the cost of a tangible asset over its estimated useful life.