Use form at the end of this Post to request for answers
- “What type of audit report indicates that the financial statements present fairly the financial position, results of operations and the cash flows for the accounting period?”
|A disclaimer of opinion.|
|An unqualified report.|
|A qualified report.|
|An adverse opinion.|
- Which of the following items would not be discussed in the management discussion and analysis?
|Commitments for capital expenditures.|
|The internal and external sources of liquidity.|
|The market value of all assets.|
|A breakdown of sales increases into price and volume components.|
- What is a Form 10-K?
|The annual report of a publicly held company which must be filed with the SEC.|
|The quarterly report of a publicly held company which must be filed with the SEC.|
|The bankruptcy report of a publicly held company which must be filed with the SEC.|
|The form required to report a change of auditor.|
- What was one of the major impacts of the Sarbanes-Oxley Act of 2002 on external auditors?
|External auditors are now required to establish and maintain an adequate internal control structure for their clients.|
|External auditors are now required to audit the internal control assessment of a client firm.|
|External auditors are now required to state their responsibility for the internal control structure of their clients.|
|None of the above.|
- Which of the following statements is true?
|GAAP-based financial statements are prepared according to the cash rather than the accrual basis of accounting.|
|Accounting choices and estimates can have a significant impact on the outcome of financial statement numbers.|
|The accrual method means that the expense is recognized after the cash is paid out.|
|The purpose of the accrual method is to attempt to match assets with liabilities in appropriate accounting periods.|
- What types of information cannot be found in the financial statements?
“Reputation of the firm, morale of employees and prestige in the community.”