Questions from General Accounting

Q: AU-C 240 points to three conditions that enable fraud to

AU-C 240 points to three conditions that enable fraud to occur. Briefly describe each condition. How does one’s propensity to act ethically as described by Rest’s model of morality influence each of t...

Q: What is the ethical value of applying the fraud triangle to assess

What is the ethical value of applying the fraud triangle to assess the risk of material misstatements in the financial statements?

Q: All companies are vulnerable to fraud, but small businesses are particularly

All companies are vulnerable to fraud, but small businesses are particularly vulnerable. Why do you think this may be the case? What signs of possible fraud may be more pronounced in small businesses...

Q: Do you think it is ethical for an employer to use social

Do you think it is ethical for an employer to use social media information as a factor when considering whether to hire an employee? What about monitoring social networking activities of employees whi...

Q: Explain the content of each section of the audit report. Evaluate

Explain the content of each section of the audit report. Evaluate the importance of each section with respect to the users of financial reports.

Q: Give one example each of when an auditor might render an unmodified

Give one example each of when an auditor might render an unmodified opinion and include an emphasis-of-matter paragraph and other-matter paragraph. What is the value of such paragraphs in the audit re...

Q: The following statement expresses the conclusion of XYZ auditors with respect to

The following statement expresses the conclusion of XYZ auditors with respect to the company’s investment in ABC. Assume that all amounts are material. What kind of audit opinion should be rendered gi...

Q: Rationalization for fraud can fall under two categories: “no harm

Rationalization for fraud can fall under two categories: “no harm” and “no responsibility.” Assume an employee is directed by management to reduce recorded expenses at year-end by insignificant amount...

Q: As discussed in the opening reflection, MF Global filed a complaint

As discussed in the opening reflection, MF Global filed a complaint charging PwC with professional malpractice, breach of contract, and unjust enrichment in connection with its advice concerning, and...

Q: Nixon and Co., CPAs, issued an unmodified opinion on the

Nixon and Co., CPAs, issued an unmodified opinion on the 2015 financial statements of Madison Corp. These financial statements were included in Madison’s annual report and Form 10-K filed with the SEC...