Which of the following is not correct about Going Concern? O a. The concept of going concern is an underlying assumption in the preparation of financial statements O b. The financial statements presume that the entity is a going concern and will continue its operations for the foreseeable future O C. Assume that the business will continue to operate long enough to carry out its current obligations, objectives and commitments O d. The concept of going concern is a conservative in the preparation of financial statements

Which of the following is not correct about Going Concern? O a. The concept of going concern is an underlying assumption in the preparation of financial statements O b. The financial statements presume that the entity is a going concern and will continue its operations for the foreseeable future O C. Assume that the business will continue to operate long enough to carry out its current obligations, objectives and commitments O d. The concept of going concern is a conservative in the preparation of financial statements

Name: Which of the following is not correct about Going Concern?a. The conc
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Description: Which of the following is not correct about Going Concern?a. The concept of going concern is an underlying assumption in the preparation of financial statementsO b. The financial statements presume that the entity is a going concern and will continu

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 3TFQ

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The performance of an attestation engagement on prospective financial information does not require which of the following?a. If the basis of the prospective financial information is different from the financial statements, a reconciliation of the two must be provided.b. Management must disclose all significant assumptions used in generating the prospective financial information.c. Management must disclose significant accounting policies and procedures used in generating the prospective financial information.d. Management must disclose the probability of obtaining the results included in the prospective financial information.
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Choose the answer which is not true about the conceptual framework for financial reporting. a. the conceptual framework forms the theoretical foundation of accounting b. the conceptual framework constitutes the highest level of authoritative status c. the conceptual framework serves as the guide for the development & revision of accounting standards d. all of the foregoing statements are correct about the conceptual framework for financial reporting
Which is a correct statement below? A. An example of an obscured material information is the information is scattered throughout the financial statements.B. Potential investors are not considered as primary users of financial information.C. An information is immaterial if it will affect the decision of the primary users of the financial statements.D. Going concern assumption means that the accounting entity is viewed as continuing in operation definitely.
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Which of the following statements are True? a) The financial statements are management's responsibility. b) Management is responsible for adopting sound accounting policies and establishing and maintaining internal control c) The fair presentation of financial statements in conformity with applicable financial reporting framework is an explicit and integral part of management's responsibility. Only b) and c) Only a) Only a) and b) All a) , b) and c)
Which of the following statements is false? Select one: O A. Management accounting statements need not comply with Accounting regulations O B. Financial accounting statements normally reflect more detail than would be found in management accounting reports O C. Management accounting reports emphasise future activities and future costs O D. Financial accounting data are directed primarily at external users rather than internal users.
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Which one of the following statements is not correct regarding financial accounting and management accounting? O a. Management accounting information emphasize supporting decisions that affect the future unlike financial accounting information, which focus on the consequences of past activities of the organization. O b. None of the given answers O c. Financial accounting needs to follow specific set of rules called accounting standards unlike management accounting O d. Management accounting reports need to be audited to verify their accuracy unlike financial accounting reports which do not need to be audited. Both financial accounting and management accounting involve the e. use of accounting information.