Term
| Which of the following is a factor that relates to attitudes or rationalization to commit fraudulent financial reporting? |
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Definition
| Management's practice of making overly aggressive forecasts. |
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Term
| The most effective way to prevent and deter fraud is to: |
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Definition
| implement programs and controls that are based on core values embraced by the company. |
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Term
| After fraud risks are identified and documented, the auditor should evaluate factors that ________ fraud risk before developing an appropriate response to the risk of fraud. |
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Definition
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Term
| Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud? |
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Definition
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Term
| Which party has the primary responsibility to oversee an organization's financial reporting and internal control processes? |
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Definition
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Term
| Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting? |
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Definition
| Management's practice of making overly aggressive forecasts. |
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Term
| Which of the following is a factor that relates to incentives or pressures to commit fraudulent financial reporting? |
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Definition
| Excessive pressure for management to meet debt repayment requirements. |
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Term
| Fraud awareness training should be: |
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Definition
| specifically related to the employee's job responsibility. |
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Term
QUESTION 5
1. Which of the following non-verbal cues is a sign of stress? |
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Definition
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Term
| 1. Two conditions are generally present when material misstatements due to fraud occur - incentives and opportunities. (T OR f) |
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Definition
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Term
| 1. SAS No. 99 requires auditors to document which of the following matters related to the auditor's consideration of material misstatements due to fraud? |
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Definition
| Procedures performed to obtain information necessary to identify and assess the risks of material fraud. |
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Term
| An example of a fraud risk factor describing incentives/pressures is "ineffective board of director oversight over financial reporting." |
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Definition
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Term
| Which of the following is not true about IFRS? |
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Definition
| IFRS includes only pronouncements issued by the IASB |
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Term
The following information pertains to inventory held by a company at December 31, 2011.
What is the amount of inventory loss shown on the income statement under U.S. GAAP?
$1,000.
$2,000.
$4,000.
$5,000.
$8,200. |
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Definition
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Term
| Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on: |
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Definition
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Term
| The IASB and FASB are working on several joint projects. Which of the following is not a topic of the Revenue Recognition Project? |
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Definition
| Cash flow presentation of revenue. |
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Term
| A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet? |
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Definition
| Measuring salaries expense. |
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Term
| Which of the following is not a factor influencing a country's financial reporting practices? |
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Definition
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Term
| A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet? |
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Definition
| Acquisition value for a subsidiary |
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Term
Which one of the following is not a background requirement for any IASB members?
Which of the following are not authoritative pronouncements of International Financial Reporting Standards (IFRSs)?
1) International Financial Reporting Standards issued by the IASB
2) International Accounting Standards issued by the IASC and adopted by the IASB
3) Intrepretations originated by the International Financial Reporting Interpretations Committee (IFRIC)
4) U.S. Generally Accepted Accounting Principles |
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Definition
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Term
| Which of the following is not an IFRS pronouncement originally issued by the IASB? |
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Definition
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Term
A company acquired a new piece of equipment on January 1, 2009 at a cost of $200,000. The equipment is expected to have a useful life of 10 years, a residual value of $20,000 and is depreciated on a straight-line basis. On January 1, 2011, the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years.
At what amount should the equipment be reported on the December 31, 2011 balance sheet under U.S. GAAP? |
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Definition
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Term
| In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must: |
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Definition
| use IFRS, or use foreign GAAP and provide a reconciliation to U.S. GAAP. |
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Term
| The types of differences that exist between IFRS and U.S. GAAP would not generally include: |
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Definition
| Comparability differences. |
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Term
| Which of the following statements is false regarding a country's legal system? |
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Definition
| Common law originated in the Roman jus civile. |
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Term
| In countries where there is less pressure for public accountability and information disclosure: |
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Definition
| information needs can be satisfied by requesting information from internal company sources. |
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Term
| Which of the following statements is false regarding providers of financing? |
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Definition
| Disclosures are less extensive in those countries financed primarily by stock. |
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Term
• Question 18
Convergence of accounting standards would not occur by: |
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Definition
| IASB issuing a new standard. |
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