The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all the following factors except the
A. fact that auditors are appointed by the firm.
B. desire to get future auditing contracts from the company.
C. desire to get consulting work from the company because most audit firms also do consulting work.
D. failure of U.S. audit firms to hire technically qualified professionals.
Answer: D
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In ranking choices with the break-even time (BET) method, the investment with the longest BET gets the highest rank.
Answer the following statement true (T) or false (F)
An agreement is illegal and void if it violates
a. state usury statutes. b. state licensing statutes. c. state criminal statutes. d. all of these.
No officers at Royal Dutch were aware of the reserves overstatements
Indicate whether the statement is true or false
Which of the following refers to a profit planning step of a small business?
A. Listing strategies for rapid growth B. Listing strategies and possible alternatives to reduce production costs C. Analyzing the diversification strategies of competitors D. Determining the volume of sales revenue needed to reach profit goals