Exam 14: Audit of Longer-Term Liabilities, equity, acquisitions, and Related-Entity Transactions, long-Term Liabilities, and Equity

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Bryce Canyon,CPA is auditing the financing cycle of Top Hat,Inc.He reviews the articles of incorporation and bylaws of Top Hat in relation to the company's common stock to determine proper disclosure of which of the following?

(Multiple Choice)

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Question 101

Examples of evidence typically examined by the audit team in a post-acquisition restructuring include severance agreements with terminated employees.

(True/False)

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Question 102

Once the impairment of goodwill has been signaled,the amount of the impairment loss is calculated as the difference between the implied fair value of the goodwill and its carrying amount.

(True/False)

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Question 103

A possible impairment of goodwill is determined if the fair value of the related reporting unit is less than the book value of the unit,including the goodwill.

(True/False)

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Question 104

The auditors must notify the SEC of any related party transactions discovered during testing.

(True/False)

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Question 105

An example of a restriction in a bond indenture is the use of a trustee to disburse funds.

(True/False)

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Question 106

Companies will not consolidate an entity where ownership is significantly less than 50% because of the variable interest entity rules.

(True/False)

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Question 107

The reporting unit in an acquisition may be which of the following?

(Multiple Choice)

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Question 108

Bonds are reported on the financial statements net of premium or discount.

(True/False)

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Question 109

An auditor must calculate the actuarial estimates for the client to record an accurate pension liability.

(True/False)

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Question 110

Owners of smaller companies often set up related entities to transact with in order to do which of the following?

(Multiple Choice)

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Question 111

A term used to describe a joint business venture with other entities to develop products and services utilizing the technologies of the entities involved is called what?

(Multiple Choice)

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Question 112

Which of the following liabilities does not involve significant subjective judgments?

(Multiple Choice)

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Question 113

Showing 101 - 113 of 113

Bryce Canyon,CPA is auditing the financing cycle of Top Hat,Inc.He reviews the articles of incorporation and bylaws of Top Hat in relation to the company's common stock to determine proper disclosure of which of the following?

Examples of evidence typically examined by the audit team in a post-acquisition restructuring include severance agreements with terminated employees.

Once the impairment of goodwill has been signaled,the amount of the impairment loss is calculated as the difference between the implied fair value of the goodwill and its carrying amount.

A possible impairment of goodwill is determined if the fair value of the related reporting unit is less than the book value of the unit,including the goodwill.

The auditors must notify the SEC of any related party transactions discovered during testing.

An example of a restriction in a bond indenture is the use of a trustee to disburse funds.

Companies will not consolidate an entity where ownership is significantly less than 50% because of the variable interest entity rules.

The reporting unit in an acquisition may be which of the following?

Bonds are reported on the financial statements net of premium or discount.

An auditor must calculate the actuarial estimates for the client to record an accurate pension liability.

Owners of smaller companies often set up related entities to transact with in order to do which of the following?

A term used to describe a joint business venture with other entities to develop products and services utilizing the technologies of the entities involved is called what?

Which of the following liabilities does not involve significant subjective judgments?

Auditing: Integral to the Economy

Corporate Governance and Audits

Judgmental and Ethical Decision-Making Frameworks and Associated Professional Standards

Audit Risk,business Risk,and Audit Planning

Internal Control Over Financial Reporting

Performing an Integrated Audit

A Framework for Audit Evidence

Tools Used in Gathering Audit Evidence

Auditing for Fraud

Auditing Revenue and Related Accounts

Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Ensuring Audit Quality in Completing the Audit

Auditors Reports

Professional Liability

Advanced Topics Concerning Complex Audit Judgments

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