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Please help me answer this questions is my last questions to ask this month A strong tone at the top about the importance of accurate
Please help me answer this questions is my last questions to ask this month
A strong tone at the top about the importance of accurate financial reporting A encourages the over accrual of expenses and liabilities. B discourages the under accrual of expenses and liabilities. discourages the over accrual of expenses and liabilities. encourages the under accrual of expenses and liabilities. Why does the client prepare independent bank reconciliation? A To validate purchase returns B To record purchase returns and allowances To check for the completeness, existence, and valuation of cash balances To check accounts payable An example of a factor that provides the incentive for management to misstate revenue cycle assertions would be A strong support from top management of an ethical culture. B pressures to overstate revenues to achieve revenue or profitability targets that were unrealistic. realistic sales targets within the firm. D loose credit and collections policies. A major risk in processing cash receipts transactions A is that the bank often erroneously double-counts entries. B is the possible theft of cash before or after a record of the receipt is made. is the possible theft of cash only before record of the receipt is made. D relates to inaccuracies caused by only one person counting the cash receipts. An example of a factor that mitigates doubts about an entity's ability to continue as a going concern would be A ALL of these examples are mitigating factors. B a letter of guarantee from a parent company. the ability to sell an unprofitable segment of the business. D the ability to raise additional funds through the issuance of more stock. With a manufacturer, wholesaler, or retailer, inherent risk for inventory may be assessed at or near the maximum due to a wide diversity of inventory items. B a large volume of inventory purchases. inventories being stored at multiple sites. D ALL of these answer choices are correct. When is a disclaimer of opinion issued? A When scope limitation is eliminated by alternative procedures B When a scope limitation is material and pervasive When a misstatement is material and pervasive D When a scope limitation is material but not pervasive 2.5 Points Pervasive factors that might motivate management to misstate purchases process assertions include A ALL of these answer choices are correct. B pressure to understate expenses in order to report achieving announced profitability targets or industry norms, which were not achieved in reality. pressure to understate payables in order to report a higher level of working capital when the entity is experiencing liquidity problems. D pressure to understate payables in order to report a higher level of working capital when the entity is experiencing going concern doubts
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