Questions from Auditing and Assurance

Q: Distinguish fraudulent financial reporting from misappropriation of assets.

Distinguish fraudulent financial reporting from misappropriation of assets.

Q: What are the three conditions of fraud often referred to as "

What are the three conditions of fraud often referred to as "the fraud triangle?"

Q: The Art Appreciation Society operates a museum for the benefit and enjoyment

The Art Appreciation Society operates a museum for the benefit and enjoyment of the community. When the museum is open to the public two clerks who are positioned at the entrance collect a $5.00 admis...

Q: Give examples of risk factors for fraudulent financial reporting for each of

Give examples of risk factors for fraudulent financial reporting for each of the three fraud conditions: incentives/pressures, opportunities, and attitudes/rationalization.

Q: Give examples of risk factors for misappropriation of assets for each of

Give examples of risk factors for misappropriation of assets for each of the three fraud conditions: incentives/pressures, opportunities, and attitudes/rationalization.

Q: Establishing materiality and allocation of materiality to individual accounts requires considerable judgment

Establishing materiality and allocation of materiality to individual accounts requires considerable judgment. Access Microsoft’s 2009 financial statements at www.microsoft.com (use the “investor relat...

Q: The engagement partner agreed with Sessions’ recommended approach. In planning the

The engagement partner agreed with Sessions’ recommended approach. In planning the audit evidence for detailed inventory tests, the audit risk model was applied with the following results: TDR = AAR/I...

Q: The Securities and Exchange Commission (SEC) found that Bally Total

The Securities and Exchange Commission (SEC) found that Bally Total Fitness Holding Corporation, a nationwide commercial operator of fitness centers, fraudulently accounted for three types of revenues...

Q: The separation of operational responsibility from record keeping is meant to prevent

The separation of operational responsibility from record keeping is meant to prevent different types of misstatements than the separation of the custody of assets from accounting. Explain the differen...

Q: Distinguish a significant deficiency in internal control from a material weakness in

Distinguish a significant deficiency in internal control from a material weakness in internal control. How will the presence of one significant deficiency affect an auditor's report on internal contro...