Question 17 of 45

_______________________ are most often involved in perpetrating fraudulent financial reporting.

The treasurer and the board of directors.

The chief executive and chief financial officers.

The auditors and the attorneys.

The controller and accounting manager.

The shareholders and the chief operating officer.

Question 18 of 45

Which of the following statements is false?

A company's history of exactly meeting analyst estimates is a factor which could lead auditors to assess inherent risk at a higher level.

Lapping of accounts receivable is least likely to occur when there is an inadequate segregation of duties.

Current auditing standards do not require the confirmation of receivables if accounts receivable are not material.

The purpose of the auditor's consideration of the effectiveness of internal controls is to determine the nature, extent and timing of substantive testing.

Alternative procedures to the confirmation of receivables include review of subsequent collections and examination of supporting evidence.