The susceptibility of an assertion about a class of transaction, account balance or disclosure to a misstatement that could be material either individually or when aggregated with other misstatement, before consideration of any related control is defined as Inherent Risk Control Risk Detection Risk Audit Risk

The susceptibility of an assertion about a class of transaction, account balance or disclosure to a misstatement that could be material either individually or when aggregated with other misstatement, before consideration of any related control is defined as Inherent Risk Control Risk Detection Risk Audit Risk

Accounting Information Systems

11th Edition

ISBN:9781337552127

Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Chapter16: The General Ledger And Business Reporting (gl/br) Process

Section: Chapter Questions

Problem 7DQ

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16- Which of the following statements is FALSE? Select one: a. Systematic risk is also known as market risk. b. Systematic risk is also known as undiversifiable risk. c. Systematic risk is also known as diversifiable risk. d. Unsystematic risk is also known as diversifiable risk. Clear my choice
Q12 Which of the following is correct in a regular way purchase (or sale) of a financial asset? Select one or more: a. The trade date should always coincide with the settlement date. b. Settlement should be effected within seven workings days always c. Purchasing and selling of securities should be done according to the terms and conditions stipulated by the traders. d. The asset should be delivered within the time frame established generally by regulation or convention in the marketplace concerned.
14 Risk related to counterparty failure to meet their obligation based on the initially agreed terms is referred to as:* A. Operational risk B. Funding risk C. Credit risk D. Fiduciary risk
D6) Finance (Insurance risk management) For the following types of risk exposures, explain why the amount of insurance coverage may be significantly limited through contractual provisions such as exclusions, limits, coinsurance, and deductibles) or in some cases, totally no coverage at all. (at least 200 words)
13. Identify the risks described in each statement: 1st: Dependent on the covenants set and agreed in between the lenders and the borrowers.2nd: Classified as a systematic risk because it arises from external forces or based on the movement of the industry. a. Legal; Market b. Market; Legal c. Contractual; Industry d. Industry; Contractual
q3- Which of the following statements is TRUE? Select one: a. Unsystematic risk is also known as undiversifiable risk. b. Unsystematic risk is also known as common risk. c. Unsystematic risk is also known as independent risk. d. Unsystematic risk is also known as market risk
22. Uncertainties such as natural disasters that could happen in the future: A. Are not contingent liabilities because they are future events not arising out of past transactions or events.B. Are contingent liabilities because they are future events arising from past transactions or events.C. Should be disclosed because of their usefulness to financial statements.D. Are estimated liabilities because the amounts are uncertain
7) The risk premium of a stock is NOT affected by its ________.A) undiversifiable riskB) market riskC) systematic riskD) unsystematic risk
AP7.10 (LO 6) As discussed in the chapter, the results of tests of controls should ultimately influence the auditor’s audit strategy.RequiredExplain the differences between an audit of internal controls as required by AS 2201 and the testing of internal controls for the purposes of expressing an opinion on the financial statements as mandated by AU-C 315. Refer to the standards in your answer.
Q11 Which of the following options is INCORRECT regarding financial assets and the subsequent measurement model(s)? Select one: a. Financial Asset: Equity instrument Management Intention: Realise fair value changes Measurement Model: Fair value, adjustments in OCI _ b. Financial Asset: Debt instrument Management Intention: Earning contractual cash flows Measurement Model: Amortised cost _ c. Financial Asset: Equity instrument Management Intention: Realise fair value changes Measurement Model: Fair value, adjustments in SPL _ d. Financial Asset: Debt instrument Management Intention: Earning contractual cash flows Measurement Model: Fair value, adjustments in OCI _
Q17. Which of the following is correct? Group of answer choices 1. Forwards are more flexible than futures. 2. Forwards are exchange-traded 3. Futures are standardised. 4. Forwards are more liquid than futures.
23) The IFRS criteria for recognizing a transfer of a receivable focuses on which of the following? a)Risks b)Rewards c)Loss of control d) All of these answers choices are correct.