In the case of Reisman v. KPMG Peat Marwick LLP, the auditors were found guilty of fraud because
A. They were aware of misrepresentations that were relied upon by others
B. They fraudulently recorded inventories that did not in fact exist
C. They were not independent and conspired with management
D. They approved moving liabilities off the balance sheet by using thousands of subsidiaries
Answer: A
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Which of the following is correct regarding international accounting standards for the impairment of intangible assets?
a. Goodwill impairments may not be reversed. b. Goodwill impairments may be reversed. c. No impairment losses may be reversed. d. A distinction is made between impairment procedures for intangibles with finite and indefinite lives.
The forerunner of today's public relations firms—The Publicity Bureau, founded in Boston—gained national prominence in 1906 when it was employed by which one of the following?
A. Ford Motor Company D. The meat packers B. Standard Oil Company E. President Theodore Roosevelt C. The nation's railroads
The judge will make the first "opening statement."
a. True b. False
Gaba Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 17,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 70,000 units were completed in the Grinding Department and transferred to the next processing department. There were 7,000 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Grinding Department for the month?
A. 70,000 B. 60,500 C. 50,000 D. 70,700