Chapter 2 - Test Bank
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Chapter 2 - Test Bank

Course Number: MGMT 504, Spring 2012

College/University: Purdue

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Chapter 02 - Professional Standards Chapter 02 Professional Standards True / False Questions 1. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. True False 2. The auditors' report on a corporation's financial statements usually is addressed to the president...

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02 Chapter - Professional Standards Chapter 02 Professional Standards True / False Questions 1. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. True False 2. The auditors' report on a corporation's financial statements usually is addressed to the president of the company. True False 3. The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards. True False 4. Partners in CPA firms usually have the responsibility for signing the audit report. True False 5. An audit is more likely to detect tax evasion than violations of antitrust laws. True False 6. The attestation standards do not supersede generally accepted auditing standards. True False 7. A peer review is generally performed by employees of the AICPA. True False 2-1 Chapter 02 - Professional Standards 8. If the auditors discover illegal acts by a client, they ordinarily must immediately resign from the engagement. True False 9. An audit should be designed to obtain reasonable assurance of detecting non-compliance with all laws. True False 10. The pronouncements of the International Auditing and Assurance Standards Board do not override the national auditing standards of its members, even when financial statements are issued by a multinational company. True False Multiple Choice Questions 11. Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: A. Option A B. Option B C. Option C D. Option D 12. Financial statements are prepared following a(an) A. Applicable financial reporting framework. B. Appropriate subject matter. C. Generally accepted auditing standards. D. Set of quality control standards. 2-2 Chapter 02 - Professional Standards 13. An attestation engagement: A. Has as its primary source of standards the assurance standards. B. Includes a report on subject matter, or on an assertion about subject matter. C. Includes search and verification procedures for all major accounts. D. Is ordinarily an examination, review or compilation engagement. 14. An audit provides reasonable assurance of detecting which of the following types of material illegal acts? A. Option A B. Option B C. Option C D. Option D 15. Which of the following is not a type of auditors' opinion? A. Adverse. B. Ordinary. C. Qualified. D. Unmodified. 16. Which of the following is one of the elements of AICPA quality control? A. Assurance of proper levels of association. B. Due professional care. C. Engagement performance. D. Supervision. 2-3 Chapter 02 - Professional Standards 17. A procedure in which a quality control partner periodically tests the application of quality control procedures is most directly related to which quality control element? A. Engagement performance. B. Human resources. C. Leadership responsibilities for quality with the firm. D. Monitoring. 18. Requirements for training, independence and due professional care are included in which group of the generally accepted auditing standards of the PCAOB? A. Fieldwork. B. General. C. Reporting. D. Quality control. 19. Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards? A. The audit provides reasonable assurance the client will remain in business for at least one year. B. The audit report expresses an opinion on whether the financial statements are free of material and immaterial misstatement. C. Auditors are responsible for, among other things, maintaining professional objectivism, exercising professional engagement, and obtaining appropriate documentation. D. An auditor's opinion enhances the degree of confidence that intended users can place in the financial statements. 20. A set of criteria used to determine measurement, recognition, representation, and disclosure of all material items appearing in the financial statements is referred to as a(n) A. Financial reporting framework. B. Public Company Accounting Oversight Board Criteria. C. Quality control presentation standard. D. Special purpose audit standard. 2-4 Chapter 02 - Professional Standards 21. An audit should be designed to obtain reasonable assurance of detecting material misstatements due to: A. Errors. B. Errors and fraud. C. Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts. D. Errors, fraud and noncompliance with all laws. 22. Which of the following is accurate, as indicated in the principles underlying an audit? A. Management is expected to provide the auditors with all needed evidence prior to the beginning of audit work. B. An auditor is unable to obtain absolute assurance that the financial statements are free from material misstatement. C. Auditors are responsible for having appropriate competence to perform the audit without the assistance of outside specialists. D. Management is responsible for preparing accurate financial statement amounts, while auditors are responsible for auditing those amounts and for preparing note disclosures related to those amounts. 23. Which of the following is not an underlying premise of an audit? A. Management must provide the auditor with all information relevant to the preparation and fair presentation of the financial statements. B. Management and the auditors have responsibility for the preparation of financial statements in accordance with the applicable financial reporting framework. C. Where appropriate, the auditor may obtain information from those charged with governance. D. The auditors should be provided unrestricted access to those within the entity from whom the auditor determines it necessary to obtain audit evidence. 2-5 Chapter 02 - Professional Standards 24. By definition, proper professional skepticism on an audit requires A. Option A B. Option B C. Option C D. Option D 25. When a Statement Auditing Standards uses the word "should" relating to a requirement, it means that the auditor: A. Must fulfill the responsibilities under all circumstances. B. Must comply with requirements unless the auditor demonstrates and documents that alternative actions are sufficient to achieve the objectives of the standards. C. Should consider whether to follow the advice based on the exercise of professional judgment in the circumstances. D. May choose to change responsibilities relating to various professional standards that remain under consideration. 26. An unconditional responsibility to follow an AICPA professional standard exists when the professional standard uses the term(s) A. Option A B. Option B C. Option C D. Option D 2-6 Chapter 02 - Professional Standards 27. Which of the following best describes a portion of the auditors' responsibility regarding noncompliance with laws by clients? A. The auditors have a responsibility to discover all material noncompliance. B. If audit procedures reveal noncompliance, the auditors should take appropriate actions. C. If the auditors suspect noncompliance, they should conduct a legal audit of the company. D. The auditors' responsibility for the detection of all noncompliance is the same as their responsibility regarding material misstatements due to errors and fraud. 28. The auditors who find that the client has committed an illegal act would be most likely to withdraw from the engagement when the: A. Management fails to take appropriate corrective action. B. Illegal act has material financial statement implications. C. Illegal act has received widespread publicity. D. Auditors cannot reasonably estimate the effect of the illegal act on the financial statements. 29. Which of the following is not included as a part of the description of the auditor's responsibility in a nonpublic company unmodified report? A. The audit was performed in accordance with generally accepted accounting principles. B. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. C. The procedures selected depend on the auditor's judgment. D. An audit includes evaluating the appropriateness of accounting policies used. 30. Primary responsibility for the financial statements lies with: A. Option A B. Option B C. Option C D. Option D 2-7 Chapter 02 - Professional Standards 31. Which of the following is explicitly included as a part of the description of management's responsibility in an unmodified audit report? A. Management is responsible for making a judgment on which misstatements are material vs. immaterial. B. Management is responsible for providing auditors with all relevant evidence. C. Management is responsible for the design, implementation, and maintenance of internal control. D. Management is responsible for listing all illegal acts with a direct effect on financial statement amounts and disclosures. 32. The auditors' report for a nonpublic company should indicate: A. That the audit was made in accordance with auditing standards generally accepted in the United States of America. B. Any weakness in internal control observed by the auditors. C. That accounting principles have been consistently applied. D. That no illegal acts have been identified. 33. The Auditing Standards Board's guidance on matters such as the purpose of an audit, the premise of an audit, and auditor personal responsibilities is included in: A. The 10 Generally Accepted Auditing Standards. B. The Code of Professional Conduct. C. Accounting Series Releases. D. Principles Underlying an Audit Conducted in Accordance with GAAS. 34. A requirement that working papers be reviewed by the supervisor, and any deficiencies be discussed with the preparer is an example of a quality control procedure in the area of: A. Acceptance and continuance of client relationships and specific engagements. B. Engagement performance. C. Human resources. D. Relevant ethical requirements. 2-8 Chapter 02 - Professional Standards 35. A requirement to design recruitment processes and procedures to help the firm select individuals meeting minimum academic requirements established by the firm is an example of a quality control procedure in the area of: A. Acceptance and continuance of client relationships and specific engagements. B. Engagement performance. C. Human resources. D. Relevant ethical requirements. 36. The body that issues international pronouncements providing auditing procedural and reporting guidance is the: A. International Federation of Auditors. B. Multinational Reporting Commission. C. International Auditing and Assurance Standards Board. D. AICPA Auditing Standards Board. 37. To present fairly in conformity with generally accepted accounting principles the financial statements must: A. Be consistently applied. B. Inform users of all matters that could materially affect a decision. C. Reflect transactions and events within a range of reasonable limits. D. Be considered preferable to the users of those financial statements. 38. Which of the following is not included in the auditors' standard unmodified audit report? A. The procedures selected by the auditor depend on the auditor's judgment. B. An audit includes evaluating the appropriateness of accounting policies used. C. An audit includes evaluating the overall presentation of the financial statements. D. Accounting principles have been consistently applied. 2-9 Chapter 02 - Professional Standards 39. An audit performed in accordance with generally accepted auditing standards generally should: A. Be expected to provide absolute assurance that noncompliance with all laws will be detected where internal control is effective. B. Be relied upon to disclose violations of truth in lending laws. C. Encompass a plan to actively search for all illegalities which relate to operating aspects. D. Not be relied upon to provide absolute assurance that all noncompliance with laws will be detected. 40. When the auditors express an opinion on financial statements their responsibilities extend to: A. The underlying wisdom of their client's management decisions. B. Whether the results of their client's operating decisions are fairly presented in the financial statements. C. Active participation in the implementation of the advice given to their client. D. An ongoing responsibility for their client's solvency. 41. Authoritative GAAP sources include: A. Option A B. Option B C. Option C D. Option D 2-10 Chapter 02 - Professional Standards 42. An investor reading the financial statements of The Sundby Corporation observes that the statements are accompanied by an unmodified auditors' report. From this the investor may conclude that: A. Any disputes over significant accounting issues have been settled to the auditors' satisfaction. B. The auditors are satisfied that Sundby is operationally efficient. C. The auditors have ascertained that Sundby's financial statements have been prepared accurately. D. Informative disclosures in the financial statements but not necessarily in the footnotes are to be regarded as reasonably adequate. 43. The auditors' report may be addressed to the company whose financial statements are being examined or to that company's: A. Chief operating officer. B. President. C. Board of Directors. D. Chief financial officer. 44. Which of the following best describes what is meant by generally accepted auditing standards? A. Acts to be performed by the auditors. B. Measures of the quality of the auditors' performance. C. Procedures to be used to gather evidence to support financial statements. D. Audit objectives generally determined on audit engagements. 45. If noncompliance with a law is discovered during the audit of a publicly held company, the auditors should first: A. Notify the regulatory authorities. B. Determine who was responsible for the noncompliance. C. Intensify the examination to identify noncompliance with any laws. D. Report the act to high level personnel within the client's organization and to the audit committee. 2-11 Chapter 02 - Professional Standards 46. Which of the following is the name used to describe financial reporting frameworks other than GAAP which include: cash basis, tax basis, regulatory basis, or contractual basis? A. Applicable. B. PCAOB. C. Special reports. D. Special purpose. 47. Which of the following statements best describes the primary purpose of Statements on Auditing Standards? A. They are guides intended to set forth auditing procedures which are applicable to a variety of situations. B. They are procedural outlines which are intended to narrow the areas of inconsistency and divergence of auditor opinion. C. They are authoritative statements, enforced through the Code of Professional Conduct. D. They are interpretations which may be useful guidance to auditors. 48. The primary responsibility for the adequacy of disclosure in the financial statements of a publicly held company rests with the: A. Partner assigned to the audit engagement. B. Management of the company. C. Auditor in charge of the fieldwork. D. Securities and Exchange Commission. 49. Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide personnel within the firm with: A. Technical training that assures proficiency as an auditor. B. Professional education that is required in order to perform with due professional care. C. Knowledge required to fulfill assigned responsibilities and to progress within the firm. D. Knowledge required in order to perform a peer review. 2-12 Chapter 02 - Professional Standards 50. In pursuing a CPA firm's quality control objectives, a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm's clients. Which quality control objective would this be most likely to satisfy? A. Acceptance and continuance of clients and engagements. B. Engagement performance. C. Personnel management. D. Relevant ethical requirements. 51. A CPA firm establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client. The primary purpose for establishing such policies and procedures is: A. To enable the auditor to attest to the integrity or reliability of a client. B. To comply with the quality control standards established by regulatory bodies. C. To minimize the likelihood of association with clients whose managements lack integrity. D. To lessen the exposure to litigation resulting from failure to detect fraud in client financial statements. 52. Which of the following is not an element of quality control? A. Documentation. B. Engagement performance. C. Monitoring. D. Relevant ethical requirements. 53. Generally accepted auditing standards established by the AICPA through April of 2003: A. Have been accepted as interim standards by the Public Company Accounting Oversight Board. B. Provide accounting guidance for nonpublic companies. C. Have all been superseded by Public Company Accounting Oversight Board standards. D. Are now developed by the Securities and Exchange Commission. 2-13 Chapter 02 - Professional Standards 54. The Public Company Accounting Oversight Board has authority to establish which of the following relating to public companies? A. Option A B. Option B C. Option C D. Option D 55. Which of the following is least likely to be directly examined in an inspection performed by the PCAOB? A. Audit engagements. B. Review engagements. C. Compilation engagements. D. CPA firm quality control system. 56. As compared with the US public company audit report, the international audit report: A. Is shorter in length. B. Includes enhanced explanation of the audit process. C. Includes the name of the partner and managers on the audit, while the US report includes only the CPA firm name. D. Is dated as of year-end, whereas the US report is dated as of the last date of significant field work. 57. A peer review in which the peer reviewers study and appraise a CPA firm's system of quality control to perform accounting and auditing work is referred to as a(n): A. Engagement review. B. Inspection review. C. Supervision review. D. System review. 2-14 Chapter 02 - Professional Standards 58. An engagement review form of peer review is least likely to include a peer reviewer's detailed analysis of: A. Compilation reports. B. Documentation of procedures followed on a review. C. Overall system of quality control. D. Review reports. 59. Of the following, which are current types of peer review? A. Option A B. Option B C. Option C D. Option D 2-15 Chapter 02 - Professional Standards Matching Questions 60. Indicate whether you agree or disagree with the following statements concerning a financial statement audit conducted in accordance with generally accepted auditing standards. 1. When an auditing standard uses the word "should," this indicates that the auditor must in all cases follow it if the requirement is relevant to the company being audited 2. Audits provide absolute assurance of detecting material misstatements and reasonable assurance of detecting immaterial misstatements 3. At one point, the Public Company Oversight Board adopted the AICPA auditing standards in existence as its interim auditing standards 4. International auditing standards are developed by the International Auditing and Assurance Standards Board 5. For audit purposes, professional skepticism includes a questioning mind and a critical assessment of audit evidence and should be maintained throughout the planning and performance of an audit 6. The Auditing Standards Board issues accounting principles for nonpublic company audits while the Public Company Accounting Oversight Board issues accounting principles for public company audits 7. Auditors have a higher responsibility for detecting noncompliance with laws affecting financial statement amounts and disclosures than they do for other laws 8. Public companies are ordinarily audited by a CPA firm, with engagement review by the General Accounting Office 2-16 Disagree ____ Disagree ____ Agree ____ Disagree (auditing standards, not accounting principles) ____ Agree ____ Disagree ____ Agree ____ Agree ____ Chapter 02 - Professional Standards Essay Questions 61. The standard unmodified auditors' report for audits of nonpublic companies consists of three paragraphs. Identify the three paragraphs and describe the purpose of each. 62. Auditors must consider the possibility of fraud by employees or management on every audit engagement. They must also consider the possibility that the client has not complied with laws. (a) Distinguish between employee and management fraud. (b) Describe the auditors' responsibility for the detection of fraud in an audit. (c) Describe the auditors' responsibility regarding noncompliance with laws by a client. 2-17 Chapter 02 - Professional Standards Chapter 02 Professional Standards Answer Key True / False Questions 1. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. TRUE Difficulty: Easy 2. The auditors' report on a corporation's financial statements usually is addressed to the president of the company. FALSE Difficulty: Easy 3. The auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards. FALSE Difficulty: Medium 4. Partners in CPA firms usually have the responsibility for signing the audit report. TRUE Difficulty: Medium 2-18 Chapter 02 - Professional Standards 5. An audit is more likely to detect tax evasion than violations of antitrust laws. TRUE Difficulty: Hard 6. The attestation standards do not supersede generally accepted auditing standards. TRUE Difficulty: Medium 7. A peer review is generally performed by employees of the AICPA. FALSE Difficulty: Medium 8. If the auditors discover illegal acts by a client, they ordinarily must immediately resign from the engagement. FALSE Difficulty: Medium 9. An audit should be designed obtain to reasonable assurance of detecting non-compliance with all laws. FALSE Difficulty: Medium 2-19 Chapter 02 - Professional Standards 10. The pronouncements of the International Auditing and Assurance Standards Board do not override the national auditing standards of its members, even when financial statements are issued by a multinational company. TRUE Difficulty: Medium Multiple Choice Questions 11. Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: A. Option A B. Option B C. Option C D. Option D Difficulty: Hard 2-20 Chapter 02 - Professional Standards 12. Financial statements are prepared following a(an) A. Applicable financial reporting framework. B. Appropriate subject matter. C. Generally accepted auditing standards. D. Set of quality control standards. Difficulty: Medium 13. An attestation engagement: A. Has as its primary source of standards the assurance standards. B. Includes a report on subject matter, or on an assertion about subject matter. C. Includes search and verification procedures for all major accounts. D. Is ordinarily an examination, review or compilation engagement. Difficulty: Hard 14. An audit provides reasonable assurance of detecting which of the following types of material illegal acts? A. Option A B. Option B C. Option C D. Option D Difficulty: Medium 2-21 Chapter 02 - Professional Standards 15. Which of the following is not a type of auditors' opinion? A. Adverse. B. Ordinary. C. Qualified. D. Unmodified. Difficulty: Medium 16. Which of the following is one of the elements of AICPA quality control? A. Assurance of proper levels of association. B. Due professional care. C. Engagement performance. D. Supervision. Difficulty: Hard 17. A procedure in which a quality control partner periodically tests the application of quality control procedures is most directly related to which quality control element? A. Engagement performance. B. Human resources. C. Leadership responsibilities for quality with the firm. D. Monitoring. Difficulty: Hard 18. Requirements for training, independence and due professional care are included in which group of the generally accepted auditing standards of the PCAOB? A. Fieldwork. B. General. C. Reporting. D. Quality control. Difficulty: Medium 2-22 Chapter 02 - Professional Standards 19. Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards? A. The audit provides reasonable assurance the client will remain in business for at least one year. B. The audit report expresses an opinion on whether the financial statements are free of material and immaterial misstatement. C. Auditors are responsible for, among other things, maintaining professional objectivism, exercising professional engagement, and obtaining appropriate documentation. D. An auditor's opinion enhances the degree of confidence that intended users can place in the financial statements. Difficulty: Hard 20. A set of criteria used to determine measurement, recognition, representation, and disclosure of all material items appearing in the financial statements is referred to as a(n) A. Financial reporting framework. B. Public Company Accounting Oversight Board Criteria. C. Quality control presentation standard. D. Special purpose audit standard. Difficulty: Easy 21. An audit should be designed to obtain reasonable assurance of detecting material misstatements due to: A. Errors. B. Errors and fraud. C. Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts. D. Errors, fraud and noncompliance with all laws. Difficulty: Hard 2-23 Chapter 02 - Professional Standards 22. Which of the following is accurate, as indicated in the principles underlying an audit? A. Management is expected to provide the auditors with all needed evidence prior to the beginning of audit work. B. An auditor is unable to obtain absolute assurance that the financial statements are free from material misstatement. C. Auditors are responsible for having appropriate competence to perform the audit without the assistance of outside specialists. D. Management is responsible for preparing accurate financial statement amounts, while auditors are responsible for auditing those amounts and for preparing note disclosures related to those amounts. Difficulty: Medium 23. Which of the following is not an underlying premise of an audit? A. Management must provide the auditor with all information relevant to the preparation and fair presentation of the financial statements. B. Management and the auditors have responsibility for the preparation of financial statements in accordance with the applicable financial reporting framework. C. Where appropriate, the auditor may obtain information from those charged with governance. D. The auditors should be provided unrestricted access to those within the entity from whom the auditor determines it necessary to obtain audit evidence. Difficulty: Hard 2-24 Chapter 02 - Professional Standards 24. By definition, proper professional skepticism on an audit requires A. Option A B. Option B C. Option C D. Option D Difficulty: Hard 25. When a Statement Auditing Standards uses the word "should" relating to a requirement, it means that the auditor: A. Must fulfill the responsibilities under all circumstances. B. Must comply with requirements unless the auditor demonstrates and documents that alternative actions are sufficient to achieve the objectives of the standards. C. Should consider whether to follow the advice based on the exercise of professional judgment in the circumstances. D. May choose to change responsibilities relating to various professional standards that remain under consideration. Difficulty: Hard 2-25 Chapter 02 - Professional Standards 26. An unconditional responsibility to follow an AICPA professional standard exists when the professional standard uses the term(s) A. Option A B. Option B C. Option C D. Option D Difficulty: Medium 27. Which of the following best describes a portion of the auditors' responsibility regarding noncompliance with laws by clients? A. The auditors have a responsibility to discover all material noncompliance. B. If audit procedures reveal noncompliance, the auditors should take appropriate actions. C. If the auditors suspect noncompliance, they should conduct a legal audit of the company. D. The auditors' responsibility for the detection of all noncompliance is the same as their responsibility regarding material misstatements due to errors and fraud. Difficulty: Medium 28. The auditors who find that the client has committed an illegal act would be most likely to withdraw from the engagement when the: A. Management fails to take appropriate corrective action. B. Illegal act has material financial statement implications. C. Illegal act has received widespread publicity. D. Auditors cannot reasonably estimate the effect of the illegal act on the financial statements. Difficulty: Medium 2-26 Chapter 02 - Professional Standards 29. Which of the following is not included as a part of the description of the auditor's responsibility in a nonpublic company unmodified report? A. The audit was performed in accordance with generally accepted accounting principles. B. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. C. The procedures selected depend on the auditor's judgment. D. An audit includes evaluating the appropriateness of accounting policies used. Difficulty: Medium 30. Primary responsibility for the financial statements lies with: A. Option A B. Option B C. Option C D. Option D Difficulty: Medium 31. Which of the following is explicitly included as a part of the description of management's responsibility in an unmodified audit report? A. Management is responsible for making a judgment on which misstatements are material vs. immaterial. B. Management is responsible for providing auditors with all relevant evidence. C. Management is responsible for the design, implementation, and maintenance of internal control. D. Management is responsible for listing all illegal acts with a direct effect on financial statement amounts and disclosures. Difficulty: Medium 2-27 Chapter 02 - Professional Standards 32. The auditors' report for a nonpublic company should indicate: A. That the audit was made in accordance with auditing standards generally accepted in the United States of America. B. Any weakness in internal control observed by the auditors. C. That accounting principles have been consistently applied. D. That no illegal acts have been identified. Difficulty: Medium 33. The Auditing Standards Board's guidance on matters such as the purpose of an audit, the premise of an audit, and auditor personal responsibilities is included in: A. The 10 Generally Accepted Auditing Standards. B. The Code of Professional Conduct. C. Accounting Series Releases. D. Principles Underlying an Audit Conducted in Accordance with GAAS. Difficulty: Medium 34. A requirement that working papers be reviewed by the supervisor, and any deficiencies be discussed with the preparer is an example of a quality control procedure in the area of: A. Acceptance and continuance of client relationships and specific engagements. B. Engagement performance. C. Human resources. D. Relevant ethical requirements. Difficulty: Hard 35. A requirement to design recruitment processes and procedures to help the firm select individuals meeting minimum academic requirements established by the firm is an example of a quality control procedure in the area of: A. Acceptance and continuance of client relationships and specific engagements. B. Engagement performance. C. Human resources. D. Relevant ethical requirements. Difficulty: Hard 2-28 Chapter 02 - Professional Standards 36. The body that issues international pronouncements providing auditing procedural and reporting guidance is the: A. International Federation of Auditors. B. Multinational Reporting Commission. C. International Auditing and Assurance Standards Board. D. AICPA Auditing Standards Board. Difficulty: Medium 37. To present fairly in conformity with generally accepted accounting principles the financial statements must: A. Be consistently applied. B. Inform users of all matters that could materially affect a decision. C. Reflect transactions and events within a range of reasonable limits. D. Be considered preferable to the users of those financial statements. Difficulty: Medium 38. Which of the following is not included in the auditors' standard unmodified audit report? A. The procedures selected by the auditor depend on the auditor's judgment. B. An audit includes evaluating the appropriateness of accounting policies used. C. An audit includes evaluating the overall presentation of the financial statements. D. Accounting principles have been consistently applied. Difficulty: Medium 39. An audit performed in accordance with generally accepted auditing standards generally should: A. Be expected to provide absolute assurance that noncompliance with all laws will be detected where internal control is effective. B. Be relied upon to disclose violations of truth in lending laws. C. Encompass a plan to actively search for all illegalities which relate to operating aspects. D. Not be relied upon to provide absolute assurance that all noncompliance with laws will be detected. Difficulty: Medium 2-29 Chapter 02 - Professional Standards 40. When the auditors express an opinion on financial statements their responsibilities extend to: A. The underlying wisdom of their client's management decisions. B. Whether the results of their client's operating decisions are fairly presented in the financial statements. C. Active participation in the implementation of the advice given to their client. D. An ongoing responsibility for their client's solvency. Difficulty: Medium 41. Authoritative GAAP sources include: A. Option A B. Option B C. Option C D. Option D Difficulty: Hard 42. An investor reading the financial statements of The Sundby Corporation observes that the statements are accompanied by an unmodified auditors' report. From this the investor may conclude that: A. Any disputes over significant accounting issues have been settled to the auditors' satisfaction. B. The auditors are satisfied that Sundby is operationally efficient. C. The auditors have ascertained that Sundby's financial statements have been prepared accurately. D. Informative disclosures in the financial statements but not necessarily in the footnotes are to be regarded as reasonably adequate. Difficulty: Hard 2-30 Chapter 02 - Professional Standards 43. The auditors' report may be addressed to the company whose financial statements are being examined or to that company's: A. Chief operating officer. B. President. C. Board of Directors. D. Chief financial officer. Difficulty: Medium 44. Which of the following best describes what is meant by generally accepted auditing standards? A. Acts to be performed by the auditors. B. Measures of the quality of the auditors' performance. C. Procedures to be used to gather evidence to support financial statements. D. Audit objectives generally determined on audit engagements. Difficulty: Medium 45. If noncompliance with a law is discovered during the audit of a publicly held company, the auditors should first: A. Notify the regulatory authorities. B. Determine who was responsible for the noncompliance. C. Intensify the examination to identify noncompliance with any laws. D. Report the act to high level personnel within the client's organization and to the audit committee. Difficulty: Hard 46. Which of the following is the name used to describe financial reporting frameworks other than GAAP which include: cash basis, tax basis, regulatory basis, or contractual basis? A. Applicable. B. PCAOB. C. Special reports. D. Special purpose. Difficulty: Easy 2-31 Chapter 02 - Professional Standards 47. Which of the following statements best describes the primary purpose of Statements on Auditing Standards? A. They are guides intended to set forth auditing procedures which are applicable to a variety of situations. B. They are procedural outlines which are intended to narrow the areas of inconsistency and divergence of auditor opinion. C. They are authoritative statements, enforced through the Code of Professional Conduct. D. They are interpretations which may be useful guidance to auditors. Difficulty: Medium 48. The primary responsibility for the adequacy of disclosure in the financial statements of a publicly held company rests with the: A. Partner assigned to the audit engagement. B. Management of the company. C. Auditor in charge of the fieldwork. D. Securities and Exchange Commission. Difficulty: Easy 49. Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide personnel within the firm with: A. Technical training that assures proficiency as an auditor. B. Professional education that is required in order to perform with due professional care. C. Knowledge required to fulfill assigned responsibilities and to progress within the firm. D. Knowledge required in order to perform a peer review. Difficulty: Hard 2-32 Chapter 02 - Professional Standards 50. In pursuing a CPA firm's quality control objectives, a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm's clients. Which quality control objective would this be most likely to satisfy? A. Acceptance and continuance of clients and engagements. B. Engagement performance. C. Personnel management. D. Relevant ethical requirements. Difficulty: Hard 51. A CPA firm establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client. The primary purpose for establishing such policies and procedures is: A. To enable the auditor to attest to the integrity or reliability of a client. B. To comply with the quality control standards established by regulatory bodies. C. To minimize the likelihood of association with clients whose managements lack integrity. D. To lessen the exposure to litigation resulting from failure to detect fraud in client financial statements. Difficulty: Medium 52. Which of the following is not an element of quality control? A. Documentation. B. Engagement performance. C. Monitoring. D. Relevant ethical requirements. Difficulty: Medium 2-33 Chapter 02 - Professional Standards 53. Generally accepted auditing standards established by the AICPA through April of 2003: A. Have been accepted as interim standards by the Public Company Accounting Oversight Board. B. Provide accounting guidance for nonpublic companies. C. Have all been superseded by Public Company Accounting Oversight Board standards. D. Are now developed by the Securities and Exchange Commission. Difficulty: Medium 54. The Public Company Accounting Oversight Board has authority to establish which of the following relating to public companies? A. Option A B. Option B C. Option C D. Option D Difficulty: Hard 55. Which of the following is least likely to be directly examined in an inspection performed by the PCAOB? A. Audit engagements. B. Review engagements. C. Compilation engagements. D. CPA firm quality control system. Difficulty: Medium 2-34 Chapter 02 - Professional Standards 56. As compared with the US public company audit report, the international audit report: A. Is shorter in length. B. Includes enhanced explanation of the audit process. C. Includes the name of the partner and managers on the audit, while the US report includes only the CPA firm name. D. Is dated as of year-end, whereas the US report is dated as of the last date of significant field work. Difficulty: Hard 57. A peer review in which the peer reviewers study and appraise a CPA firm's system of quality control to perform accounting and auditing work is referred to as a(n): A. Engagement review. B. Inspection review. C. Supervision review. D. System review. Difficulty: Hard 58. An engagement review form of peer review is least likely to include a peer reviewer's detailed analysis of: A. Compilation reports. B. Documentation of procedures followed on a review. C. Overall system of quality control. D. Review reports. Difficulty: Hard 2-35 Chapter 02 - Professional Standards 59. Of the following, which are current types of peer review? A. Option A B. Option B C. Option C D. Option D Difficulty: Medium 2-36 Chapter 02 - Professional Standards Matching Questions 60. Indicate whether you agree or disagree with the following statements concerning a financial statement audit conducted in accordance with generally accepted auditing standards. 1. When an auditing standard uses the word "should," this indicates that the auditor must in all cases follow it if the requirement is relevant to the company being audited 2. Audits provide absolute assurance of detecting material misstatements and reasonable assurance of detecting immaterial misstatements 3. At one point, the Public Company Oversight Board adopted the AICPA auditing standards in existence as its interim auditing standards Disagree 8 Disagree 2 Agree 5 Disagree (auditing 4. International auditing standards are developed by the standards, not International Auditing and Assurance Standards Board accounting principles) 6 5. For audit purposes, professional skepticism includes a questioning mind and a critical assessment of audit evidence and should be maintained throughout the planning and performance of an audit Agree 7 6. The Auditing Standards Board issues accounting principles for nonpublic company audits while the Public Company Accounting Oversight Board issues accounting principles for public company audits Disagree 1 7. Auditors have a higher responsibility for detecting noncompliance with laws affecting financial statement amounts and disclosures than they do for other laws Agree 3 8. Public companies are ordinarily audited by a CPA firm, with engagement review by the General Accounting Office Agree 4 Difficulty: Medium 2-37 Chapter 02 - Professional Standards Essay Questions 61. The standard unmodified auditors' report for audits of nonpublic companies consists of three paragraphs. Identify the three paragraphs and describe the purpose of each. Introductory paragraph--describes the financial statements being auditing and the responsibilities of management and the auditors. Scope paragraph--describes the nature of an audit and indicates whether the audit was performed in accordance with generally accepted auditing standards. Opinion paragraph--expresses the auditors' opinion on the financial statements. Difficulty: Easy 62. Auditors must consider the possibility of fraud by employees or management on every audit engagement. They must also consider the possibility that the client has not complied with laws. (a) Distinguish between employee and management fraud. (b) Describe the auditors' responsibility for the detection of fraud in an audit. (c) Describe the auditors' responsibility regarding noncompliance with laws by a client. (a) Employee fraud is dishonest actions by lower level employees that occur within a company despite management's efforts to prevent such actions. Management fraud occurs when the top executives of a company deliberately deceive stockholders, creditors, and the auditors by misstating the financial statements. (b) The auditors have a responsibility to design the audit to provide reasonable assurance of detecting material errors and fraud and to conduct the audit with due care and skepticism. (c) An audit cannot be relied upon to detect all noncompliance with laws by the client. For laws which have a direct and material effect on the financial statement amounts, the responsibility for detection is the same as that for errors and fraud--that is to design the audit to provide reasonable assurance of detection. For other laws (those having an indirect effect on the financial statement amounts), an audit does not provide reasonable assurance of detection. Difficulty: Hard 2-38

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Purdue - MGMT - 504
Chapter 07 - Internal ControlCHAPTER 7Internal ControlReview Questions7-1Internal control is a process, effected by the entity's board of directors, management and otherpersonnel, designed to provide reasonable assurance regarding the achievement of
Purdue - MGMT - 504
Chapter 07 - Internal ControlChapter 07Internal ControlTrue / False Questions1. Internal control is concerned with the reliability of financial information.True False2. The Foreign Corrupt Practices Act prohibits bribes to foreign corporate official
Purdue - MGMT - 504
Chapter 17 - Auditors ReportsCHAPTER 17Auditors' ReportsReview Questions17-1The sections of the standard audit report for a nonpublic company are: (1) introductory section(which does not have a section title), (2) managements responsibility for the
Purdue - MGMT - 504
Chapter 17 - Auditors' ReportsChapter 17Auditors' ReportsTrue / False Questions1. Audit reports should be dated the date on which sufficient appropriate audit evidence hasbeen collected.True False2. When the auditors are unable to comply with gener
Purdue - MGMT - 504
Chapter 18 - Integrated Audits of Public CompaniesCHAPTER 18Integrated Audits of Public CompaniesReview Questions18-1Section 404a requires that each annual report filed with the Securities and Exchange Commissioninclude an internal control report pr
Purdue - MGMT - 504
Chapter 18 - Integrated Audits of Public CompaniesChapter 18Integrated Audits of Public CompaniesTrue / False Questions1. Section 404 of the Sarbanes-Oxley Act of 2002 includes internal control reportingrequirements for both management and auditors.
Purdue - MGMT - 504
A) In this situation, the CPAs are liable. The client sustained the losses that means theCPA against the duty, breach of the duty, and do have the losses by the CPAssnegligent performance.B) Since the losses were sustained by the trade creditor, not in
Purdue - MGMT - 504
Fraudisdefinedasmisrepresentationbyapersonofamaterialfact,knownbythatpersontobe untrue or made with reckless indifference as to whether the fact is true, with the intention of deceivingtheotherpartyandwiththeresultthattheotherpartyisinjured.Thekeypointh
Purdue - MGMT - 504
Chapter 04LegalLiabilityofCPAsMcGrawHill/IrwinCopyright2012byTheMcGrawHillCompanies,Inc.Allrightsreserved.Scope of CPA Liability Potentialliability may exceed that of otherprofessions (such as physicians) because:Number of parties suffering signi
Purdue - MGMT - 504
Auditing and Cartoon1No Cell Phones.2Review Screening QuizInterrelationship among three major financialstatementsStatement of Stockholders EquityIncome StatementBalance SheetQuizzes are closed books, please obey therules.3MGMT 406 AuditingCh
Purdue - MGMT - 504
1Recap Ch. 2PCAOB auditing standardsGeneral Standards (3)Proficiency and training Independence Due Professional careField Standards (3)Supervision and planning Understanding of the entity, including internal control Sufficient and appropriate ev
Purdue - MGMT - 504
Chapter 5AuditEvidenceandDocumentationMcGrawHill/IrwinCopyright2010byTheMcGrawHillCompanies,Inc.Allrightsreserved.Audit RiskThe possibility that the auditors mayunknowingly fail to appropriately modify theiropinion on financial statements that are
Purdue - MGMT - 504
Financial Statement Assertion ExerciseMultiple ChoiceIdentify the choice that best completes the statement or answers the question._1. Which one of the following management assertions about the cash account of a company which only holdsthe local curr
Purdue - MGMT - 504
7-34Multiple Choice(a)(2)Detecting management fraud is generally not considered to be anobjective of internal control. In fact, one of the inherent limitations of internalcontrol is that it is subject to override by management. All of the other answ
Purdue - MGMT - 504
Chapter7MGMT406InternalControlTheNatureofInternalControl1.DefinitionofInternalControlnnAU314COSOp2.3.CommitteeofSponsoringOrganizationsoftheTreadwayCommissionMajorComponentsofInternalControlOtherIssuesnnFinancialStatementAssertionsLimi
Purdue - MGMT - 504
Chapter 6Audit Planning, Understanding theClient, Assessing Risks, andRespondingGAASFieldwork StandardsPlan and supervision Ch.6Internal Control Ch.7Sufficient and Appropriate Evidence Ch.52Basic Concepts1. Financial Statement Assertions
Purdue - MGMT - 504
CHAPTER 5 Audit Evidence and DocumentationA. The relationship of evidence to audit risk (PowerPoint 5-2)1. Audit risk at the assertion level Managements financial statement assertions (PowerPoints 5-3,4,5) Audit risk includes (1) risk of misstatement
Purdue - MGMT - 504
MGMT 407 Quiz-7 Key1. Which of the following must the auditor communicate to the audit committee?A. Only material weaknesses.B. Significant deficiencies and material weaknesses.C. Only significant deficiencies.D. Neither significant deficiencies nor
Purdue - MGMT - 504
2. The term that means information skewed toward a particular belief with a tendency to havelittle or no factual basis isA political influenceB legislationc propagandad lobbyingchoose one from them and explain why?Solution:Propaganda is informatio
Purdue - MGMT - 504
which ratio or concept describes the extent to which the government has lived within its means of theyear?a) debt to assetsb) current ratioc) interperiod equityd) revenue dispersion"Answerc) interperiod equity
Purdue - MGMT - 504
All of the following are characteristics of not-for-profit organizations (NPOs) thatdistinguish them from business organizations exceptA) Contributions by resource providers who do not expect a return on investment.B) Ability to impose taxes on citizen
Purdue - MGMT - 504
Responsibility for promulgating generally accepted accounting principles fornongovernmental, not-for-profit entities rests with the FASB and was most clearly establishedA) In the 1930s.B) When the FASB was created in 1974.C) When the GASB was created
Purdue - MGMT - 504
Statement of Financial Accounting Standards (SFAS) No. 117 requires thefollowingfinancial statements for all nongovernmental, not-for-profit organizationsA) Statement of financial position, statement of activities, statement of cash flows,andstatemen
Purdue - MGMT - 504
Which of the following are conditions that must be met for contributed services toa not-for-profit organization (NPO) to be recorded as both a contribution and as anexpense?a) The services create or enhance nonfinancial assets, such as carpenter renova
Purdue - MGMT - 504
17. Tax-exempt organizations must complete a Form 990 and send it to the IRSA) Only if they have unrelated business income.B) If they are nongovernmental (and not a church) and their gross receipts are greaterthan $25,000.C) Whether they are governmen
Purdue - MGMT - 504
18. GASBS 34/35 accounting and reporting standards applicable to public colleges anduniversitiesA) Are the same as FASB standards to permit consistent reporting?B) Permit public colleges and universities to use the AICPA model which differssubstantial
Purdue - MGMT - 504
20The Internal Revenue Service may impose intermediate sanctions on a tax-exemptorganization that gives an officerA) Excessive compensation.B) More than the fair rental value for property owned by the officer.C) A bargain on the sale of assets.D) Al
Purdue - MGMT - 504
Option- aFASB standards applicable to private colleges and universities require that their financialstatements provide separate columns for each fund group.
Purdue - MGMT - 504
Question:24. Which of the following items would not be reported in the section on revenues and gains inthe statement of activities of a private college or university?A. Student tuition and fees.B. Gifts and donations.C. Net assets released from restr
Purdue - MGMT - 504
25. Which of the following is not a condition that would permit a public college or privatecollege or university to avoid accounting recognition of the value of its collections of art,historical treasures, and similar assets?A. The assets are held for
Purdue - MGMT - 504
31. A performance audit is concerned with which of the following issues?A) The extent to which entity programs met their objectives.B) The extent to which entity programs produced benefits greater than or equal to their costs.C) Whether the entity has
Purdue - MGMT - 504
33. The scope paragraph of an independent auditors report on a financial audit of a localgovernment:A) Identifies the financial statements on which the auditor is expressing an opinion.B) States that generally accepted auditing standards require that t
Purdue - MGMT - 504
Performance audits, as defined in the GAO's Governmental Auditing StandardsA) provide a basis for an auditor's opinion as to whether the entity is acquiring, protectingand using its resources economically and efficiently.B) Provide assurance that opera
Purdue - MGMT - 504
Which of the following is the highest in the hierarchy of generally accepted accountingprinciples according to AICPA Statement of Auditing Standard No 69, as amended bySAS No. 91, for state and local governments?A) AICPA Audit and Accounting Guide.B)
Purdue - MGMT - 504
Which of the following is outside the scope of the financial statement audit?A) Governmental activities.B) Required supplementary information.C) Major funds.D) Business-type activities
Purdue - MGMT - 504
An auditor performing non audit work for a client is in danger of violating theindependencerules in Government Auditing Standards when he or she.A) Conducts a search and recommends a particular person for the position for theclient.B) Maintains the a
UChicago - ACCT - 116
AccountingforIncomeTaxes1AccountingforIncomeTaxesUnderlyingprinciplesGAAPtaxdifferencesIncometaxfootnoteEffectoftaxratechangesNetoperatinglossesValuationallowanceUncertaintaxpositionsIncometaxgeography2AccountingforIncomeTaxes:UnderlyingPrinc
UChicago - ACCT - 116
PROFORMAFINANCIALSTATEMENTSFORALTERNATIVEACCOUNTINGCHOICES1PROFORMAFINANCIALSTATEMENTS Financialstatementsasifanalternativeaccountingchoice(orchoices)hadbeenmade Choicesinclude Method(e.g.depreciation,revenuerecognition) Accountingregimes(e.g.U
UChicago - ACCT - 116
Accounting for LeasesAccounting1Accounting for LeasesAccounting(E)xcept for operating leases entered intoin the normal course of business, we werenot party to any material off-balance sheetarrangements (Emphasis added.)($ billions)DebtEquityOp
UChicago - ACCT - 116
EmployeeStockOptions1EmployeeStockOptionsWhatisanoptionandwhyisitvaluable?ESOsv.publiclytradedoptionsFinancialreportingforESOsTaxtreatmentofESOsFinancialreportingoftaxconsequencesDisclosuresEstimatingtheValueofOutstandingOptions2WhatisanOptiona
UChicago - ACCT - 116
ConvertibleDebtConvertibleDebtConvertibleDebtMaybeconvertedintocommonstockattheholdersoption.Holderwillconvertifstockpriceissufficientlyhigh.Hascharacteristicsofbothequityanddebt.Equivalenttostraightdebtplusacalloptiononthestockwithexerciseprice
UChicago - ACCT - 116
Special Items:Discontinued Operations andExtraordinary Items1Special ItemsDiscontinuedoperations:Resultsofoperationsthathavebeen(orareintheprocessofbeing)soldorotherwisedisposedofExtraordinaryitems:Gainsandlossesthatarebothunusualandnonrecurring
UChicago - ACCT - 116
Fair Value andOtherComprehensiveIncomeInvestmentsDerivativesandHedgingContractsFair Value Has Crept in over TimeLowerofcostormarketforinventoryandfixedassets WritedownsbutnowriteupsinUSSFAS115(1993)fairvaluesfor Passiveequityinvestments Debtnotc
UChicago - ACCT - 116
Retirementplantypes Retirementplanfunding Retirementplanaccounting Financialstatementanalysisimplications1Defined contribution:EmployerContributionsTrustBenefitsRetireesDefined benefit pension and funded OPEB plans:EmployerContributionsTrust
UChicago - ACCT - 116
CHANGESINACCOUNTINGMETHODSANDESTIMATESANDRESTATEMENTSTOCORRECTERRORS1ACCOUNTINGCHANGES Accountingchangesincludeadoptionsofnewaccountingprinciples,either voluntarily,OR asresultofanewstandard Donotincludechangesinestimates Whatarethetransitionru
UChicago - ACCT - 116
FASB AgendaStatus of Convergence1LeasesOriginallyproposedlesseestocapitalizeallleases,withonlydeminimusexceptions,basedonarightofusemodelLaterindicatedthereisadichotomybetweenfinanceandotherthanfinanceleases,withthelatterhavinganexpensepatternsim
UChicago - ACCT - 116
ReviewPostMidtermMaterialDiscontinuedoperationsExtraordinaryitemsFairvaluemodelandOCIInvestmentsDerivativesandhedgingRetirementplansAccountingchangesandrestatementsProformasfortransactionsDiscontinuedOperations Criteriafordiscontinuedoperation
UChicago - ACCT - 116
Pro Formas for TransactionsProTodetermine potential nearness todebt covenant violationsTo anticipate financing needsresulting from a transactionTo anticipate financial statementeffects and communicate toshareholders (e.g. EPS dilution)1Pro Form
UChicago - ACCT - 116
19519919019418518918018417517917017416516916016415515915015414514914014413513913013412512912012411511911011410510910010495999094858980847579707465696064B30116Spring2012FinalExam12N=93Range =60194/199Mean=145.2Median=15010
UChicago - ACCT - 116
1711751661701611651561601511551461501411451361401311351261301211251161201111151061101011059610091958690818576807175667061655660515546504145B30116Spring2012MidtermExam10N=93Range =44172/175Mean=120.6Median=1259876543
UChicago - ACCT - 116
Exam # _University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30116) Spring 2012Midterm Exam AddendumCVS Caremark InformationProf. L. SofferContents (all from 2011 Form 10-K):1. Consolidated Statements of Income2. Con
UChicago - ACCT - 116
Exam # _Name:_Section in which enrolled (circle one): Tue Wed SatUniversity of Chicago Booth School of BusinessAccounting and Financial Analysis I (30116) Spring 2012Midterm ExamProf. L. SofferGENERAL INSTRUCTIONSThis is a closed book exam except
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016)Case 1: Acme United CorporationSelected ComputationsProf. L. SofferThe journal entry summarizing the 2008 activity in the first table in the tax footnote is:In
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016) Spring 2012Case 1: Acme United Corporation (Income Taxes and Pro Formas)Prof. L. SofferThe following exhibits appear after the case requirements:1. Acme United
UChicago - ACCT - 116
SWA CONSTRUCTIVE CAPITALIZATION - Revsine Method($ millions)As RptdCap OL ProFormaCurrent assets2,8932,893PP&E, net11,0401,53312,573Other assets37537514,3081,53315,841Current maturities of long-term debtOther current liabilitiesLong-ter
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016) Spring 2012Case 2: Southwest Airlines (Leasing)Prof. L. SofferAs an analyst at a credit rating agency, you have been asked to assess the financialleverage of S
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016)Case 3: Oracle Corporation Employee Stock OptionsSelected ComputationsIn order to ensure your answer satisfies both of the conditions described in the case, you
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016) Spring 2012Case 3: Oracle Corporation (Employee Stock Options)Prof. L. SofferNOTE TO STUDENTS: You should hand in your responses to Requirements 1, 2 and3. You
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016)Case 4: Coca-Cola Companys Equity Method Investments Selected ComputationsCCE net incomeOther investees net incomeTotal investee incomeCoke equity method incom
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016) Spring 2012Case 4: Coca-Cola Companys Equity Method InvestmentsProf. L. SofferThe following documents are available in the exhibits after the requirements:1. C
UChicago - ACCT - 116
University of Chicago Booth School of BusinessAccounting and Financial Analysis I (B30016) Spring 2012Case 5: Pension Accounting Honeywell, Inc. Selected ComputationsProf. L. SofferUS Plans ReconciliationBalance 12/ 31/ 09ContributionsService cos