1) Premature revenue recognition can be done by: a. Improper cutoff. b. Channel stuffing. c. Both a) and b) are methods of premature revenue recognition d. Neither a) nor b) are methods of premature revenue recognition.

2)Which of the following characteristics most likely would heighten an auditors 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 companys stock.

c. Management places excessive emphasis on meeting earnings goals.

d. The rate of change in the companys industry is slow.