An auditor knows that an audit client operating in an industry in which common stock is valued based on the price-earnings ratio will soon make an initial public offering. All of the following are true except:
A. Materiality should be reduced.
B. Risk of material misstatement should increase.
C. Detection risk should decrease.
D. Audit risk should increase.
D. Audit risk should increase.
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Which of the following will best help a new employee establish credibility with customers?
A) Understanding the company's history B) Establishing qualifications and areas of expertise C) Being aware of communication skills D) Bragging about previous records and successes E) Using hyperbole when discussing past achievements
Which of the following is the most important part of a negative message?
A) A positive, forward-looking closing B) A neutral buffer C) An explanation of the reasons for the bad news D) The bad news itself
The Federal Reserve banks act as liaisons between the business community and the Federal Reserve System
Indicate whether the statement is true or false
Congress authorizes the EPA to regulate air quality by reducing emissions from gasoline engines. The EPA immediately bans gas engines issues such a regulation. The new regulation is probably:
a. a legal issuance of a substantive regulation b. a legal amendment of a substantive regulation c. a legal procedural revision of a substantive regulation d. an improperly implemented substantive regulation e. an improper revision of an interpretative regulation