Question 31

• Research indicates that financial statement frauds that involve inappropriate or fraudulent recording of revenue are only a very small minority of financial statement frauds.

• True

• False

Question 35

• Which of the following is not a significant account relative to the revenue cycle?

a	Accounts receivable
b	Allowance for sales returns and rebates
c	Reserve for obsolete inventories
d	Allowance for doubtful accounts
e	Unearned revenue

Question 39

• What are the three (3) types of misstatements that are required to be summarized and evaluated by the auditor prior to completion of the audit?

a	Fraudulent misstatements, projected misstatements and judgmental misstatements
b	Known misstatements, projected misstatements, and fraudulent misstatements
c	Material misstatements, immaterial misstatements and clearly trivial misstatements
d	Judgmental misstatements, projected misstatements and known misstatements