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- Concept of Articulation all of the components of a complete set of financial statements are interrelated. Full disclosure principle financial statements provide sufficient detail to disclose matters that make a difference to users, yet sufficient condensation to make the information understandable, keeping in mind the costs of preparing and using it. Consistency concept financial statements are prepared on the basis of accounting principles which are followed consistently from one period to the next. Matching Associating cause and effect costs are recognized as expenses when the related revenue is recognized. Millan Basic Accounting Concepts - Continuation Entity theory the accounting objective is geared towards the proper income determination. Proprietary theory the accounting objective is geared towards the proper valuation of assets. Residual equity theory this theory is applicable where there are two classes of shares issued, ordinary and preferred.Link: https://salem.craigslist.org/ctd/d/bend-2018-honda-cr-ex-awd/7288949927.html
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- Statements made by client personnelfont A. Theattestation standards contain no requirement to obtain an understanding of theclient and assess the risk of material misstatement B. Theattestation standards do not require technical training and proficiency C. Theattestation standards do not require planning for attestation engagements orsupervision of accountants and consultants who perform the work D. Theattestation standards do not require a report that "states the characterof the engagement. The attestation standards contain no requirement to obtain an understanding of the client and assess the risk of material misstatement Anaudit of the financial statements of Camden Corporation is being conducted byexternal auditors.Link: https://reddit.com/r/cissp/comments/li6gqx/cissp_exam_change_in_from_1st_may_2021/
- The external auditors are expected to: A. Certifythe correctness of Camden's financial statements B. Givean opinion on the fair presentation of Camden's financial statements inconformity with generally accepted accounting principles D. Givean opinion on the attractiveness of Camden for investment purposes and critiquethe wisdom and legality of its business decisions C. Give an opinion on the fair presentation of Camden's financial statements in conformity with generally accepted accounting principles Auditorstry to achieve independence in appearance in order to: A. Maintainpublic confidence in the profession B. Becomeindependent in fact C. Complywith the standards of field Work under generally accepted auditing standards D. Maintainan unbiased mental attitude A. Maintain public confidence in the profession Independentauditors most likely will refer to one or more of the three general standardsof generally accepted auditing standards to determine A. Thenature of an report qualification B.Link: https://cbe.wwu.edu/files/ARGUS%20Software%20Certification%20%28ASC%29.pdf
- Thenature, timing, and extent of audit procedures C. Requirementsfor a sufficient understanding of the risk of material misstatement D. Whetherauditors should undertake an audit examination for a particular entity D. Whether auditors should undertake an audit examination for a particular entity Whichof the following procedures would provide the most reliable auditevidence? Inquiriesof the client's internal audit staff held in private B. Inspectionof prenumbered client purchase orders filed in the vouchers payable department C. Analyticalprocedures performed by auditors on the client's trial balance D. Inspectionof bank statements obtained directly from the client's financial institution D. Inspection of bank statements obtained directly from the client's financial institution Whichof the following is not an attestation standard? Thepractitioner must obtain sufficient evidence to provide a reasonable basis forthe conclusion expressed in the report B.Link: https://afr.com/policy/finding-patterns-where-none-exist-is-human-20160303-gn9gyw
- Thepractitioner must identify the subject matter or the assertion being reportedon and state the character of the engagement C. Thepractitioner must adequately plan the work and must properly supervise anyassistants D. Asufficient understanding of the client's internal controls shall be obtained toplan the engagement D. A sufficient understanding of the client's internal controls shall be obtained to plan the engagement Whichof the following would most likely be a violation of the independence standardunder generally accepted auditing standards? Anauditor on the engagement has a distant relative who is employed by a vendorthat does a significant amount of business with clients B. Theclient's Chief Executive Officer graduated from the same university as thepartner in charge of the accounting firm C.Link: https://baderlab.github.io/CBW_Pathways_2020/Module4/Reactome/lab/CBW_2020_Module_4_Lab_Answers.pdf
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- To bereliable, audit evidence must be either valid or relevant, but need not be both C. Clientaccounting data alone may be considered sufficient appropriate audit evidenceto issue an unqualified opinion on client financial statements D. Appropriatenessof audit evidence refers to the amount of corroborative evidence to be obtained A. Auditors' direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly from independent outside sources The standardauditors' report refers to GAAS and GAAP in which paragraph?Link: https://youtube.com/watch?v=pkihxlPTqO0
Accounting Chapter 2 Test Answers
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