An external transaction is an exchange within an entity that may or may not affect the accounting equation.
Answer the following statement true (T) or false (F)
False
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Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements?
A. Turnover of senior accounting personnel is low. B. Insiders recently purchased additional shares of the entity's stock. C. The rate of change in the entity's industry is slow. D. Management places substantial emphasis on meeting earnings projections.
Doug Amerson leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Doug is a
A. trade salesperson. B. missionary salesperson. C. technical salesperson. D. systems engineer. E. order taker.
A minor amount of cash kept on hand to pay for small purchases is referred to as a:
A. Cash payments fund. B. Petty cash fund. C. Cash receipts fund. D. Cookie jar fund.
When financial statements are affected by a material departure from generally accepted accounting principles, the auditors should:
A. Issue an "except for" qualification or a disclaimer of opinion. B. Withdraw from the engagement. C. Issue an unmodified opinion with a basis for modification paragraph. D. Issue an "except for" qualification or an adverse opinion.