Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional

Question:

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. Management places substantial emphasis on meeting earnings projections.

d. The rate of change in the entity's industry is slow.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

See More Books

Question Posted: May 07, 2024 02:02 AM

See More Questions

1. Which of the following presumptions is correct about the reliability of evidential matter? a. Information obtained indirectly from outside sources is the most reliable evidential matter. b. To be...
Multiple Choice 1. Which of the following concepts are pervasive in the application of generally accepted auditing standards, particularly the standards of field work and reporting? a. Internal...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Interpret the graph COVID-19 LITERACY SCALE 90 80 70 60 666 6 50 40 30 20 10 01 02 Q3 04 Q5 06 07 Q8 a9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Science Non-Science Figure 1. COVID-19 LITERARY SCALE
(a) Find the generating function for the number of ways to select 10 candy bars from large supplies of six different kinds. (b) Find the generating function for the number of ways to select, with...
Should a firm that has higher free cash flows have a higher value?
Explain why financial instruments, particularly derivatives, can alter the risk profile of a business. Use a forward currency contract as an example. Discuss whether disclosure alone is sufficient to...
Use Appendix B.5 to locate the value of t under the following conditions. a. The sample size is 15 and the level of confidence is 95%. b. The sample size is 24 and the level of confidence is 98%. c....
Ford Motor Company has the following cost structure for producing automobiles: Cost Component Fixed Cost ($) Variable Cost per Unit ($) Manufacturing $2,000,000 $20,000 Marketing $1,000,000 $10,000...
Which of the following statements reflects an auditor's responsibility for detecting errors and fraud? a. An auditor is responsible for detecting employee errors and simple fraud, but not for...
An auditor concludes that a client's illegal act, which has a material effect on the financial statements, has not been properly accounted for or disclosed. Depending on the materiality of the effect...
a. What is the main objective of Mondelezs marketing plan? b. Is Mondelezs advertising expenditure a fixed cost or a variable cost? When the pandemic hit, Mondelez International, maker of Oreos,...
The 14th Amendment to the U.S. Constitution, ratified in 1868, guaranteed citizenship to "all persons born or naturalized in the United States." However, the subsequent decades saw a rise in...
An object is spinning about a fixed point o. Its angular position as a function of time is given by the following equation: 00.35 t 8.30 t + 8.00 t - 28.0 where t is in seconds and 0 is in radians....
Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated...
You prepare a single hydrogen atom in an n = 2 state, but you're not sure what the values of { or mare. For each possibility, find the probability of finding the position of the electron to be within...
Two long wires (1 and 2) run parallel to each other with wire 1 suspended directly above wire 2. The wires (1 and 2) respectively carry currents of I = 21.0 A and I2 = 52.0 A and they both have a...
In Figure, a conducting rod of mass m and negligible resistance is free to slide without friction along two parallel rails of negligible resistance separated by a distance l and connected by a...
Make an argument that Williams had a right to delay the closing until after August 1.
Please help me to solve these questions. Thank you so much! 1. Which of the following is not correct relating to financial statement audit? A) Financial statement audits of today place more emphasis...
Wham Products, a maker of specialty products, is currently manufacturing and selling a product called Gory Goo. A discount department store, J-Mart, has made a one-time offer to purchase 58,000 units...
Lunar Entertainment is a provider of cable, Internet, and on-demand video services. Lunar currently sends monthly bills to its customers via the postal service. Because of a concern for the...

Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional

Question:

Step by Step Answer:

The characteristic that most likely would heighten an auditors concern about the risk of intentional ...View the full answer

Auditing An Assertions Approach

Students also viewed these Business questions