Auditors face ethical issues because
A) GAAP permits various standards to be used to produce profits.
B) auditors may express an opinion that may impact employees of a company.
C) auditors may not discover insider trading.
D) GAAP does not permit fraud.
B
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Which of the following statements is true concerning the matching principle?
a. All costs can be directly matched with revenue. b. All costs can be indirectly matched with periods in which they provide a benefit. c. The association of assets for a period with the liabilities necessary to generate the assets is known as the matching principle. d. Cost of goods sold matched with sales revenue is a classic example of direct matching under the matching principle.
A leader who is demonstrating EML would enforce ethical standards ______.
a. in the right context b. when they are in line with legal standards c. in public d. even if it might cause him to be unpopular
Wigs and Torys Plc. is a leading operator of pubs and pub restaurants in the United Kingdom. It operates and franchises about 10 wine restaurants under the name Bottoms Up Bar, primarily in London. Suppose that in contracting with a franchisee of an Bottoms Up Bar wine restaurant, Wigs and Torys agrees to provide services, including site selection, décor design, marketing, advertising, and
recruiting; and the franchisee agrees to pay Wigs and Torys £100,000 . It is common in the industry to permit the franchisee to pay in equal installments over several years. When should Wigs and Torys recognize revenue from the franchisee contract? a. at the time Wigs and Torys Plc. signs the contract with the franchisee b. as the cash is received by Wigs and Torys from the franchisee c. as the income is earned by Wigs and Torys d. at the end of the franchise period e. half should be recognized when Wigs and Torys Plc. signs the contract with the franchisee and the other half after all the installments are received
Management's most powerful tool for winning employee commitment to good strategy execution is
A. setting stretch objectives. B. a structure of rewards and incentives tied tightly to the achievement of the organization's strategic priorities. C. empowering employees and encouraging them to adopt best practices. D. aggressive use of TQM and Six Sigma quality control programs. E. the establishment of strategy-supportive policies and procedures.