B the landlord has weak internal controls over billings C a related party

B the landlord has weak internal controls over

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B) the landlord has weak internal controls over billings.C) a related party transaction in which a major shareholder owns the office tower.D) Matthews Company is engaging in fraudulent activities.5) An official record of meetings of the board of directors and stockholders is included in the corporateA) bylaws.B) charter.C) minutes.D) license.6) A related party transaction may be indicated when another companyA) subsidizes certain operating expenses of the company.B) purchases its securities at their fair value.C) loans to company at market rates.D) has had a distributor relationship with the company for 10 years.7) Which of the following is an accurate statement regarding a public company's code of ethics?A) A code of ethics is required under The Foreign Corrupt Practices Act.B) A code of ethics is required only for mid-level managers and below.C) The SEC requires companies to disclose amendments and waivers to the code of ethics for the CEO, CFO and principal accounting officer.D) The PCAOB requires companies to review their code of ethics every five years.8) An auditor should examine minutes of the board of directors' meetingsA) through the date of the financial statements.B) through the date of the audit report.C) only at the beginning of the audit.D) on a test basis.9) Which of the following would most likely notbe classified as a related-party transaction?A) an advance of one week's salary to an employeeB) sales of merchandise between affiliated companiesC) loans or credit sales to the principal owner of the client companyD) exchanges of equipment between two companies owned by the same person10) Which of the following best describes the corporate minutes of an entity?A) official record of the meetings of the board of directors and the stockholdersB) unofficial record of the meeting of the board of directorsC) official record of management meeting with investors and creditors of the companyD) unofficial record of the board of directors meetings 11) Related partyA) transactions must be disclosed in the footnotes even if the amounts are immaterial.B) disclosures include the nature of the related party relationship and a description of the 60
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transaction.C) transactions are considered arm's-length transactions.D) disclosures are required only for public companies.12) Auditors should understand client objectives related toA) reliability of financial reporting.B) effectiveness and efficiency of operations.C) compliance with laws and regulations.D) all of the above.13) When analyzing a client's performance measurement system,A) ratio analysis and benchmarking against key competitors are utilized.B) only income statement numbers are used.C) inherent risk of financial statement misstatements may be decreased if the performance measurement system encourages aggressive accounting.
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