There are recurring attempts by management to justify marginal or inappropriate accounting on the basis of materiality

Q: The various methods of financial statement analysis need to be used cautiously,  with an awareness…

A: Financial statement analysis: The process of analyzing the financial statements of a company to…

Q: what is Segregation of Duties in accounting and how it can prevent fraud?

A: Segregation of duties: In a firm, segregation of duties (SOD) is a fundamental building element of…

Q: both financial and management accounting rely exclusively on gaap for reporting true false

A: Financial accounting is that branch of accounting which deals with preparation and circulation of…

Q: Assertions with high inherent risk are least likely to involve  a. complex calculations b.…

A: Routine transactions doesn't have assertions with high inherent risk.

Q: Give an example of an error or fraud that would misstate financial statements to affect the accounts…

A: Given: The example for the financial statement that would be misstated by the error or fault.

Q: When it is impossible to determine whether a change is a change in estimate or a change in policy,…

A: As per relevant accounting rules, accounting policy refers to the type of valuation or method a…

Q: Material disagreements with management will result in either: * O a qualified opinion or adverse…

A: Material disagreement between auditor  and management  arises when their is an unsuitable Accountant…

Q: Which of the following statements is not true about auditing and information risk? O A. Auditing has…

A: Auditing is an inspection of books of accounts by a qualified professional known as auditor by…

Q: On the basis of accountants’ heuristics and biases, how are accounting judgements regarding…

A: The evolution of preliminary accounting for internally created intangible assets, important to both…

Q: Under IFRS, the retrospective approach should not be used if: a.    retrospective application…

A: International Financial Reporting Standards (IFRS): International Financial Reporting Standards is a…

Q: A company cannot choose whether a mandatory information should be provided in the administration…

A: It is compulsory to provide the mandatory information in the administration reports or in the notes…

Q: Uncertainty is a significant problem in Financial Reporting but the current version of IAS 37…

A: IASs provides guidance to deal with particular event or situation. Different IASs give direction on…

Q: Discuss the possibility of substantial misstatement throughout the revenue and collection cycle,…

A: This question explains about  the revenue and collection cycle, with an emphasis on erroneous…

Q: Whether the act of overstating in revenue is considered and classified to be a significant risk.…

A: Revenue: Revenue is income earned by a firm selling its goods and services to other parties. The…

Q: What are the differences between business failure, auditor failure, and audit risk? Is it fair to…

A: Audit risk is the risk which arises due to the probability or the chance of reporting the financial…

Q: A material weakness is a situation in whicha. It is probable that an immaterial financial statement…

A: Material weakness: Combination of deficiencies in internal control over financial reporting of the…

Q: what happens when auditor is being irresponsible to the company?

A: Auditing is a process in which an auditor checks the accounts and financial statements of the…

Q: Assuming that the data collected in the accounting information system is free from material errors…

A: The information recorded in accounting system can face several risks like inherent risk and control…

Q: Provide two inherent risk factors in the revenue cycle and identify the accounts that are likely to…

A: RCM (revenue cycle management) is a procedure used by healthcare systems in the United States and…

Q: Two factors that typically lead to ethical violations are relevance and timeliness of accounting…

A: Two factors that typically lead to ethical violations are relevance and timeliness of accounting…

Q: The amount of subjectivity involved in establishing fair value estimates can be complex for…

A: GIVEN   The amount of subjectivity involved in establishing fair value estimates can be complex for…

Q: Something is deemed to be 'material' if its omission, non-disclosure or misstatement is likely to…

A: Financial statements are statements that are prepared at the end of the period in order to analyse…

Q: From the options given below which of the following is not the reason of inherent limitation of…

A: Inherent limitation of audit comprises of all those things that are responsible for limiting or…

Q: most common types of accounting distortions

A: Accounting distortions are differences occur when comparing the reported financial information with…

Q: How can we reduce this risk in financial reporting process? "Are redundant and out-of-date…

A: Financial reporting is a typical accounting approach that uses financial statements to convey a…

Q: Needles talks about the use of a continuum ranging from questionable or highly conservative to fraud…

A: Definition: Earnings: The bottom line of an income statement which is the result of excess earnings…

Q: What are the most common revenue-recognition abuses identified by auditors?

A:

Q: Vhich of the following factors do NOT impact the auditor's decision O overall risk assessment for…

A: Substantive procedures are to verify the completeness and accuracy of the statements. These are done…

Q: The primary qualities that make accounting information useful for decision-making are :(a) Relevance…

A: Accounting information: Accounting information refers to the data or the information about the…

Q: Under what circumstances would an auditor choose to confirminformation such as the right of return…

A: The right of return is the right to the customer to return the product to the supplier. The goods…

Q: What does the FASB do in order to assess possible benefits and costs of a proposed revision of an…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: Management accounting is concerned primarily with external reporting. True False

A: "As per bartleby guidelines we will solve the first question for you. If you want any specific…

Q: Some accountants argue that the receiving department should be eliminated. Discuss the objective of…

A:

Q: Define and give examples of off-balance-sheet information. Why should auditors be concerned with…

A:

Q: A trade-off between the fundamental qualitative characteristics of relevance and faithful…

A: Relevance and Faithful Representation are two important characteristics of accounting information.…

Q: What terms can be used to express an unmodified opinion on financial statements prepared in…

A: An unmodified opinion is expressed when the auditor concludes that financial statements are…

Q: Which of the following is false? a.    GAAP and IFRS have the same absolute standard regarding the…

A: International Financial Reporting Standard (IFRS): An international standard for identifying,…

Q: Discuss how a change in accounting policy is handled when it is impractical to ascertain earlier…

A: This question explains about  impractical to ascertain earlier values due to unforeseen…

Q: ethical or unethical) on the following computations of the auditor's fee:

A: [Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: financial statements are not achieve fair presentation, Auditor shall perform:

A: Option 2 is wrong because discussion with the Management is not an option for auditor to act.…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.