The Reporting section of Principles Underlying an Audit Conducted in Accordance with GAAS requires the auditor's report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. The objective of this requirement is to prevent:
A. an auditor from expressing different opinions on each of the basic financial statements.
B. misinterpretations regarding the degree of responsibility the auditor is assuming.
C. an auditor from reporting on one basic financial statement and not the others.
D. management from reducing its final responsibility for the basic financial statements.
Answer: B
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All of the following statements about PKI are true except:
A. the term PKI refers to the certification authorities and digital certificate procedures that are accepted by all parties. B. PKI is not effective against insiders who have a legitimate access to corporate systems including customer information. C. PKI guarantees that the verifying computer of the merchant is secure. D. the acronym PKI stands for public key infrastructure.
Antitrust laws apply to which of the following?
A) Agricultural co-operatives B) Professional football C) Professional baseball D) Labor unions E) All of the above
Kevin is the chief architect of a construction company. In order to maintain efficiency, he talks to the workers to understand what they do, why, and how. He ensures that he uses a standard format to record his observations. This technique helps him restrict all questions and responses to job-related topics. More importantly, this technique allows him to compare what different people are saying about the job in question. Which of the following job analysis methods is exemplified in this scenario?
A. Interview B. Observation C. Critical incidents D. Job performance
A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?
A. Debit Supplies Expense $1,250 and credit Supplies $1,250. B. Debit Supplies Expense $1,250 and credit Supplies $2,100. C. Debit Prepaid Supplies $850 and credit Supplies Expense $850. D. Debit Supplies $1,250 and credit Cash $1,250. E. Debit Supplies Expense $850 and credit Supplies $850.