Which of the following statements is NOT a driver behind the development of Integrated Reporting ?Select one:а.Users are disappointed with the lengthy and disconnected information provided in financial reports.O b. Lack of connectivity between financial reporting and tax reporting.c. Release of ASX Corporate Governance Recommendation in 2019 that listed entity disclose whether it has any material exposure toenvironmental or social risks.d. The growing gap between book value and market value.

Answer: Option (d) is correct option The growing gap between book value and market value

Answered: Which of the following statements is…

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter2: Audits Of High-risk Accounts

Section2.11: Overstock.com, Inc.

Problem 1Q

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Which of the following items (correctly describes an important difference (in most countries and business environments) between traditional financial reporting and corporate sustainability reporting? a. Corporate sustainability reporting is required, while traditional financial reporting is not required. b. Corporate sustainability reporting is voluntary, but the contents of any such report are required to be verified by an independent third party. whereas traditional financial reporting is required and its contents must be verified by an independent third party. c. No published reporting standards exist for organizations to follow when preparing and issuing corporate sustainability reports, whereas published reporting standards do exist for organizations to follow when preparing and issuing traditional financial reports. d. None of these.
Economic consequences of accounting standard-setting means:a. standard-setters must give fi rst priority to ensuring that companies do not suffer any adverseeffect as a result of a new standard.b. standard-setters must ensure that no new costs are incurred when a new standard is issued.c. the objective of financial reporting should be politically motivated to ensure acceptance by thegeneral public.d. accounting standards can have detrimental impacts on the wealth levels of the providers of financialinformation.
Economic consequences of accounting standard-setting means: a. standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard. b. standard-setters must ensure that no new costs are incurred when a new standard is issued. c. the objective of financial reporting should be politically motivated to ensure acceptance by the general public. d. accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.
In an attestation engagement, a CPA practitioner is engaged toa. Compile a company’s financial forecast based on management’s assumptions without expressing any form of assurance.b. Prepare a written report containing a conclusion about the reliability of a management assertion.c. Prepare a tax return using information the CPA has not audited or reviewed.d. Give expert testimony in court on particular facts in a corporate income tax controversy.
The Financial Accounting Standards Board was established because many groups interested in financial reporting believed that the Accounting Principles Board was not effective. Discuss the apparent advantages that the FASB has over its earlier counterpart, the APB.
Which of the following is NOT among the conditions that give rise to a demand by external users for independent audits of financial statements? a. The users of the financial statement do not have a background knowledge about accounting and tax matters b. There is an issue of agency problem between the management and the stockholders of the company c. Reliance on unaudited financial information may have adverse economic consequences d. The users of financial statements cannot directly access the company’s books and records
Which of the following statements about the IASB and FASB conceptual frameworks is not correct? a. The IASB conceptual framework does not identify revenues and gains as separate elements. b. The existing IASB and FASB conceptual frameworks are similar. c. The FASB and IASB agree that an objective of financial reporting is to provide useful information to investors and creditors. d. IFRS does not allow use of fair value as a measurement basis.
Critically evaluate if the development in financial reporting today has successfully curb the potentials of corporations to mislead stakeholders in their financial statement presentations
Maines and Wahlen94 state in their research paper on the reliability of accounting information: “Accrual estimates require judgment and discretion, which some firms under certain incentive conditions will exploit to report non-neutral accruals estimates within GAAP. Accounting standards can enhance the information in accrual estimates by linking them to the underlying economic constructs they portray.” Explain what the authors meant by this statement with respect to the possible existence of earnings management.
In 2001 and 2002 there were several high-profile US corporate collapses associated with misleading financial statements and accounting practices. Following these collapses, new laws were introduced to improve the quality of financial reporting. a) In your opinion, will further regulation prevent deliberately misleading reporting? Explain. b) Are additional laws likely to prevent corporate collapses? Why or why not? c) How important is the enforcement of financial reporting requirements in promoting high quality reporting?
A challenge facing U. S. companies adopting IFRS is ______________________________. a.certain areas exist where convergence may not be achieved b.all options are correct c.the costs incurred to do so d.the subjectivity introduced into financial reporting
Which of the following factors would most likely cause a CPA not to accept a new audit engagement? Lack of the potential client's internal auditors' computer-assisted audit techniques, Mamagement's disregard for internal control, The existence of related party trasnactions, Management's attempt tp meet earnings per share growth rate goals

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