the ethical standard that obligates CPAs to ensure that financial statements and disclosures are in conformance with GAAP
True
False
ANSWER: False
EXPLANATION:
It is the “Compliance with Standards Rule” who obligates CPAs to ensure that financial statements and disclosures are in conformance with GAAP and not the ethical standards.
the ethical standard that obligates CPAs to ensure that financial statements and disclosures are in conformance...
GAAP are standards developed by the profession to ensure that readers of financial statements receive a complete and accurate assessment of the financial status of a company?
Qualitative characteristics help ensure that the information provided in financial statements is useful. True False
12. The auditor is responsible for the footnotes to the financial statements. -True -False 13. The auditors determine which disclosures must be presented in the financial statements. -True -False 14. Which of the following is not a factor that has increased litigation against CPAs? a. The tendency of society to accept lawsuits by injured parties against anyone who might be able to provide compensation. b. Increasing incompetence within the profession. C. CPA firms are willing to settle out of court...
Financial Disclosures The following are typical disclosures that would appear in the notes accompanying financial statements. For each of the items listed, indicate where the disclosure would likely appear — either in (A) the significant accounting policies note, or (B) a separate note. 1. Depreciation method 2. Information on related party transactions 3. Method of accounting for acquisitions 4. Composition and details of long-term debt 5. Inventory method 6. Basis of revenue recognition 7. Major damage to a plant facility...
1 2. Adverse 3 The auditor believes the financial statements are in conformity with GAAP but there is a going concern situation. The auditor has specific knowledge that financial statements or disclosures are seriously misstated or misleading The auditor is not able to gather sufficient information that financial statements are in conformity with GAAP. The auditor believes the financial statements are in conformity with GAAP but wishes to draw attention to events subsequent to the balance sheet date. There has...
1) [True or False] Financial statements are the principal means through which financial information is communicated to those outside an enterprise. 2) [True or False] One weakness of accrual accounting is that it does not provide a good indication of the enterprise's present and continuing ability to generate favorable cash flows. 3) [True or False] The International Accounting Standards Board issues International Accounting Standards. 4) [True or False] The two major standard-setting organizations in the world are the International Accounting...
Question 5 True or False? There are 4 standard financial statements + notes in annual reports True False 1 pts D Question 6 $1,000 reported on a financial statement with the designation of "Sin thousands)" at the top of the page would be what amount? $1 $1.000.000 $1.000.000.000
Alpha Company hired Henderson & Associates CPAs to audit the financial statements of Christine Corporation. The financials are for delivery to Bank of North Texas. Who is the client in this scenario? O Alpha Company O Bank of North Texas o Christine Corporation 0 None of the above
Use the Ethical Reasoning Methods of egoism, enlightened egoism, act utilitarianism, rule utilitarianism, rights theory, justice, and virtue ethics discussed in Exhibit 1.3 in discussing each of the following questions regarding ethics expected of a CPA in the situations described. CPAs conducting financial statement audits in the U.S. in the 1995 to 2005 period used Generally Accepted Accounting Principles (GAAP) that were based more on meeting minimal rules than on accounting principles. Which of the ethical reasoning bases would you...
Identifying What Information is in Form 10-K Disclosures and Reports Match the Form 10-K disclosure, report, or item, 1 through 14, with the list of disclosures, a through n. Form 10-K Disclosure, Report, or Item 1. Auditors' report 2. Noncontrolling interest 3. Unqualified opinion 4. Required supplementary information 5. Statement of financial position 6. Classified balance sheet 7. Current assets 8. Management's Discussion and Analysis 9. Subsequent event 10. Current liabilities 11. Related party 12. Selected financial information 13. Annual...