Research auditing standards to identify the three required auditor responses to further address the risk of management override of internal controls.
Auditing standards note that there is a possibility that management override of controls could occur in every audit and accordingly, the auditor should include audit procedures in every audit to address that
risk.
Auditing standards (AU-C) Section 240 and PCAOB Standard No. 2301 require auditors to perform
these three mandated procedures in every audit to address the risk of management override:
? Examine journal entries and other adjustments for evidence of possible material misstatement due
to fraud.
? Review accounting estimates for biases that could result in material misstatement due to fraud.
? Evaluate the business rationale for significant unusual transactions to determine whether the
transactions may have been entered into to engage in fraudulent financial reporting.
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Which of the following are not included in a fixed-asset ledger?
a. List of all the assets. b. Estimated useful life. c. Salvage value. d. All the above are included.
Which of the following statements is true regarding follower-centered leadership perspectives?
A. First impressions can quickly prejudice our views of others and create negativity within groups. B. Motivational process are very important to understanding implicit followership and leadership theories. C. Communication methods have the largest impact on followership and leadership impressions. D. First impressions matter very little as others impressions of us can easily be influenced over time.
Online ads that incorporate animation, video, sound, and interactivity are called ________
A) search-related ads B) parody ads C) content-based ads D) digital catalogs E) rich media ads
The linking of employee compensation to the achievement of measurable business targets is called
A) compensation goal. B) performance-based compensation. C) performance target. D) performance linkage.