1. The information surrounding an event is called:
a. Noise
b. Context
c. Contribution
d. Calibration

2. A key consideration when analyzing financial statements understands that they are:
a. Representations of management
b. Representations of the external auditor
c. Representations of the internal auditor
d. Always accurate and complete

3. A financial statement fraud most often violates which of the following accounting principles?
a. Matching
b. Conservatism
c. Materiality
d. All of the above are often violated

4. Which of the following is not a user of financial statements?
a. Management
b. Creditors
c. Government agencies
d. All of the above are users of financial statements

5. Which of the following implies the highest level of assurance?
a. Review
b. Compilation
c. Audit
d. None of the above implies assurance

6. An auditor has the responsibility to plan and perform an audit to obtain _____ that the financial statements are free of material misstatement.
a. Certainty
b. Reasonable certainty
c. Absolute certainty
d. Reasonable assurance

7. Each of the following is a fundamental accounting principle except:
a. Continuality
b. Matching
c. Materiality
d. Full disclosure

8. Since May 2008, privately held companies have been permitted to prepare their financial statements in accordance with IFRS.
a. True
b. False

9. The purposeful intervention in the external financial reporting process with the intent of obtaining some private gain is known as:
a. Earnings regulation
b. Earnings management
c. Earnings deployment
d. Earnings extrapolation

10. The ability to make operational choices at year- end to enhance the appearance of a certain account is known as:
a. Operational freedom
b. Reporting freedom
c. Management freedom
d. Accounting freedom

  • CreatedMarch 04, 2015
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