Exam 6: The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Larry is concerned that the company won't meet expected earnings,so he overstates revenues,telling himself "it's for a good reason!" This is an example of,respectively:

Which of the following items is NOT a limit to the effectiveness of internal controls?

An employee's moral beliefs make it impossible to commit a fraud.This best relates to which part of the Fraud Triangle?

IFRS is considered a principles-based system,while U.S.GAAP is considered a rules-based system.

The Public Company Accounting Oversight Board (PCAOB)reports to the SOX.

Another name for a "clean" audit opinion is a(n):

Internal control systems:

The goal of overstating earnings by using fraud is to:

Using U.S.GAAP,book value typically ________ market value.

Which of the following would NOT be considered a control activity?

Overbilling the company for parking fees or cab fare would be examples of:

Ensuring compliance with laws and regulations is an example of what following GAAP can do for a company.

The process CPAs use to confirm that financial reports conform to GAAP is known as a(n):

The audit opinion that all companies try to achieve is a(n):

An organization's employees are responsible for the design and implementation of the internal control system.

U.S.GAAP's overriding principles of accounting are written by the:

The government agency that approves U.S.GAAP is the:

The Fraud Triangle is used to show the connection of the factors necessary to commit fraud by or against an organization.

Brian is stealing money because the cash registers are not always locked away at night.This is an example of: