Question 29

• The best way to characterize the role of Sherron Watkins in the downfall of Enron is:
• A.She directed the internal auditors to examine numerous transactions that led to the discovery of the fraud
• B.She gave in to the pressure of Andy Fastow to go along with materially misstated financial statements
• C.She was sent to jail even though she cooperated with the government in its case against Enron
• D.She tried to alert Ken Lay about the accounting scandal at Enron

Question 30 of 40

• Which of the following is NOT an earnings management technique?
• A.Failing to write down or write off impaired assets
• B.Releasing questionable reserves into income
• C.Failing to record expenses and related liabilities when future obligations remain
• D.Creating an allowance for uncollectible accounts and adjusting it at year end