Chapter 3 Quiz

Chapter 3 Quiz - Q uiz (See related pages) Results Reporter...

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Quiz (See related pages) Results Reporter Out of 10 questions, you answered 10 correctly with a final grade of 100% 10 correct (100%) 0 incorrect (0%) 0 unanswered (0%) Your Results: The correct answer for each question is indicated by a . 1 CORRECT Which of the following may cause management to intentionally understate profits? A) Management wants to create "cookie jar" reserves for a rainy day. B) The company is under scrutiny by tax authorities. C) The company is suffering a large loss and wants to take a "big bath." D) All of the above. Feedback: Correct. All of these are motivations to intentionally understate profits. 2 CORRECT Which of the following is true. A) Auditors are responsible for detecting all fraudulent financial reporting. B) Auditors must specifically consider fraud risk from overstating liabilities. C) Auditors must specifically consider fraud risk from management override of controls. D) All of the above are true. Feedback: Correct. This is a specific requirement of SAS 99. 3 CORRECT Auditors would perform the following steps in which order? A) Set audit risk; assess risk of material misstatement; calculate detection risk. B) Set audit risk; determine detection risk, assess risk of material misstatement. C)
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Chapter 3 Quiz - Q uiz (See related pages) Results Reporter...

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