Unformatted text preview: 38. Auditor switching and financial condition of a company are not correlated. a. True b. False 42. Falling reserves for bad debts in relation to accounts receivable may falsely boost revenues. a. True b. False 43. Analytics can tell you where to go to audit and for what to search. a. True b. False 44. Ratio analysis is a subset of trend analysis that can be used to compare relationships among financial statements accounts over time to find the fakes. a. True b. False 46. A significant deficiency or material weakness that is corrected before the balance sheet date does not need to be reported in the external auditor's report. a. True b. False 48. When using round‐robin brainstorming, everyone in the room sits in a circle and shouts out ideas while someone writes them down. a. True b. False 49. The equity method is a technique used to hide debts or liabilities from the balance sheet. a. True b. False 50. An interview and an interrogation are the same thing. a. True b. False 51. Two‐thirds of interviewees who cross their legs are lying. a. True Page 16 of 44 ...
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This note was uploaded on 07/16/2010 for the course ACCOUNTING 2301 taught by Professor Norton during the Summer '10 term at Academy of Design Tampa.
- Summer '10