Question

15) Wrochet Dracong curve Comparing the one y o determine p olecentes s en bra the w omen from the cat's word E) A Regresion iste 16) desig following A) down the SEC B) perform extended procedures C) include more experienced wions on the D) perform tots closer to your end com te 17) Which of the follow accounts and to be mo A) Accounts receive B) Prepaid expenses C) Rent expense D) Account Payable E) Uncamed Revenge t or 18. Which of the following is not an othersponse to Identified in an audit? A) Exercise professional skepticism when performing B) Increase the assessment of control is for sale C) Increase the assessment of detection is for sale o r D) Perform additional substantive a c counts receivable procedures 19. What are the three components of the fraud trange? Pick 3) a) Embezzlement b) Opportunity c) Management override d) Pressure/Motivation e) Unethical behavior 1) Moral Ambiguity g) Rationalization h) Opportunism i) Greed 191 19ii. 19 iii. 20. Which of the following circumstances would an auditor most likely consider a risk factor relating to misstatements arising from fraudulent financial reporting? A Several members of management have recently purchased additional shares of the entity's stock B. Several members of the board of directors have recently sold shares of the entily's stock C. The entity distributes financial forecasts to financial analysts that predict conservative operating results D. Management is interested in maintaining the entity's earnings trend by using aggressive accounting prices

Answer 1

16.

Option a is correct.

He should not inform the SEC.

17.

Option c is correct.

rent expense

19.

3 components:

pressure, opportunity and rationalization

20.

Option d is correct.

Management is interested in maintaining earnings trend by using aggressive acc. practices.