Accounting Ethics Chapter 5 Learnsmart

Audit committee communications should include critical accounting policies and practices and critical accounting _________

Estimates

In the Unmodified Opinion for Nonpublic Companies, auditors make the following disclosures (select all that apply): Multiple select question. Exercise professional judgment and maintain professional skepticism throughout the audit auditors perform duties in accordance with generally accepted accounting principles Obtain an understanding of internal control relevant to the audit obtain absolute assurance there is no material misstatement in the financial statements.

Exercise professional judgment and maintain professional skepticism throughout the audit Obtain an understanding of internal control relevant to the audit

Unmodified opinions can be given on the audit of the financial statements when Multiple choice question. Auditor is unable to obtain sufficient appropriate evidence on which to base the opinion Differences exist with management on GAAP issues Management has met all of its responsibilities Financial statements fairly present the financial position

Financial statements fairly present the financial position

For each Critical Audit Matter (CAM), the auditor should (select all that apply): Multiple select question. Identify the CAM Disclose which audit partner signed off on the CAM Describe how the CAM was addressed in the audit

Identify the CAM Describe how the CAM was addressed in the audit

Which of the following are objectives when performing an integrated audit? (Select all that apply.) Multiple select question. Obtain sufficient evidence to support the auditor's control risk assessments for audit of financial statements. Obtain sufficient evidence to support auditor's opinion that immaterial errors have been detected. Obtain sufficient evidence to support the auditor's opinion on ICFR at year-end. Obtain sufficient evidence to support auditor's guarantee that financial statements are free of material misstatements.

Obtain sufficient evidence to support the auditor's control risk assessments for audit of financial statements. Obtain sufficient evidence to support the auditor's opinion on ICFR at year-end.

What are the sections of the Unmodified Opinion for Nonpublic Companies? (Select all that apply.) Multiple select question. Opinion Executive compensation Basis for Opinion Key Audit Matters

Opinion Basis for Opinion Key Audit Matters

How should unusual and unexpected relationships be identified? Multiple choice question. Exercising professional skepticism Performing analytical procedures Discussing relationships with other entities with management Communications with the audit committee

Performing analytical procedures

Select all that apply The application of GAAP to the financial statements can lead to mistakes in: (Check all that apply.) Multiple select question. Presentation Classifications Amounts Management representations Auditing

Presentation Classifications Amounts

Discussions with predecessor auditors about accounting and financial reporting differences with management are part of ______ _______

Risk assessment

True or false: Audit committee communications about estimates in the financial statements are based on their reasonableness. True false question. True False

True

True or false: Auditing standards are the steps taken by the auditor during the course of audit to comply with GAAS. True false question. True False

True

True or false: The auditor's assessment of fair presentation depends on whether the information presented in the statements is classified and summarized in a reasonable manner. True false question. True False

True

An example of a direct effect illegal act is: Multiple choice question. Violations of tax laws Errors committed in the statements Operational matters Violations of worker discrimination laws

Violations of tax laws

What is the purpose of the auditor's assessment of the control environment? (Check all that apply.) Multiple select question. assess whether management's operating style is effective assess whether top management ethical values are understood Support the independent auditor's opinion

assess whether management's operating style is effective assess whether top management ethical values are understood

Fraud always entails a(n) ________ decision

deliberate

What should be included in management representations? (Check all that apply.) Multiple select question. Affirmation that management has performed an assessment of the internal controls Confirmation of providing auditor access to relevant information Communications with the audit committee about internal control weaknesses Certifications sent to the SEC Disclosure of any deficiencies in internal controls

Affirmation that management has performed an assessment of the internal controls Confirmation of providing auditor access to relevant information Disclosure of any deficiencies in internal controls

How should auditors obtain needed information to identify the risk of material misstatement due to fraud? (Check all that apply.) Multiple select question. Discuss any concerns with the audit committee Consider information received from the predecessor auditor Consider any unusual or unexpected relationships Inquire of management to assess their views about fraud risks Evaluate fraud risk factors Discuss any concerns with the SEC

Consider information received from the predecessor auditor Consider any unusual or unexpected relationships Inquire of management to assess their views about fraud risks Evaluate fraud risk factors

Auditors should withdraw from the engagement when: (Check all that apply.) Multiple select question. Auditor decides management cannot be trusted Audit report must be modified Significant conflict exists with management Auditor prefers to end the engagement

Auditor decides management cannot be trusted Significant conflict exists with management

Which of the following are elements of the risk assessment done by auditors? (Check all that apply.) Multiple select question. Discuss with management why the previous auditors were fired Communications with the predecessor auditor Contact the SEC about any violations Assessing the integrity of key management personnel Discuss with management any differences of opinion it had with the predecessor auditor on accounting issues

Communications with the predecessor auditor Assessing the integrity of key management personnel

Which of the following procedures should be performed by the audit committee to assess the potential for management override of controls? (Check all that apply.) Multiple select question. Discussions of risk factors with the predecessor auditor Compare reported information to forecasts and industry averages Discuss risk factors with management Discussions with internal auditors

Compare reported information to forecasts and industry averages Discussions with internal auditors

.How does an auditor gather and objectively evaluate audit evidence? Multiple choice question. Consider competency and sufficiency of the evidence Apply fieldwork standards Consider whether internal control are effective By assessing audit risk

Consider competency and sufficiency of the evidence

The Auditors' Unqualified Report Including Critical Audit Matters should have the following sections (check all that apply): Multiple select question. Critical Audit Matters Opinion on the Financial Statements Auditor Responsibilities Basis for Opinion

Critical Audit Matters Opinion on the Financial Statements Basis for Opinion

The objectives of audit procedures and evidence quality standards include (select all that apply): Multiple select question. adequate planning of audit work obtaining sufficient understanding of internal controls gathering sufficient evidence adequate planning of financial statement preparation

adequate planning of audit work obtaining sufficient understanding of internal controls gathering sufficient evidence

The Private Securities Litigation Reform Act (PSLRA) places additional requirements upon public companies and their auditors when (select all that apply): Multiple select question. an illegal act has a material effect on the financial statements management have not taken appropriate remedial action the board of directors have taken appropriate remedial action an illegal act has an immaterial effect on the financial statements

an illegal act has a material effect on the financial statements management have not taken appropriate remedial action

Auditors are responsible for: (Select all that apply.) reporting material errors to the SEC. reporting immaterial errors to the audit committee. detecting material errors in the financial statements. detecting immaterial errors in the financial statements. reporting material errors to the audit committee.

detecting material errors in the financial statements. reporting material errors to the audit committee.

The opinion section of the audit report Multiple choice question. identifies the statements examined. explains the conclusions reached on internal controls. expresses the auditor's conclusions based on the audit. explains the audit procedures used.

expresses the auditor's conclusions based on the audit.

In the Medicis Pharmaceutical Case, the deficiencies in EY's audit were caused by Multiple select question. failure to follow GAAS excessive independent audit evidence failure to follow GAAP over reliance on management representations

failure to follow GAAS over reliance on management representations

The objectives of reporting is to Multiple choice question. assess the qualities of the auditor. assess the quality of internal control. decide on the opinion to be issued. guide auditors in rendering the audit report.

guide auditors in rendering the audit report.

Critical audit matters are required to be communicated to the audit committee if they (select all that apply): Multiple select question. involve especially challenging, subjective, or complex judgments relate to accounts that are immaterial to the financial statements relate to disclosures that are material to the financial statements

involve especially challenging, subjective, or complex judgments relate to disclosures that are material to the financial statements

.Reasonable assurance in an audit Multiple choice question. guarantees management has implemented proper internal controls over financial reporting. guarantees that the financial statements are free of material misstatement. is not an absolute guarantee that the financial statements are free of material misstatement.

is not an absolute guarantee that the financial statements are free of material misstatement.

When the auditor is unable to obtain sufficient audit evidence to conclude the financial statements are free of material misstatement, the auditor should Multiple choice question. issue an unmodified opinion. issue an unqualified opinion. issue a modified opinion. include an emphasis-of-matter paragraph.

issue a modified opinion.

.In the Qwest Communications Case, the fraud was caused by management's Multiple choice question. pressure on employees to meet earnings targets deflating expense amounts failure to follow GAAS lack of professional competence

pressure on employees to meet earnings targets

The Medicis Pharmaceutical Case is a good example of an audit failure caused by a lack of Multiple select question. technical knowledge professional skepticism due care independent auditors

professional skepticism due care

Objectives of audit procedures and evidence establish the criteria for judging whether the audit has met standards for: Multiple choice question. due care materiality quality Transparency

quality

The auditor's assessment of fair presentation includes whether the: (Check all that apply.) Multiple select question. detailed information in the statements is properly disclosed. accounting principles are appropriate even if they lack general acceptance. statements and notes are informative of matters that may affect user understanding of the statements. statements reflect transactions and events within reasonable limits. accounting principles used comply with GAAP.

statements and notes are informative of matters that may affect user understanding of the statements. statements reflect transactions and events within reasonable limits. accounting principles used comply with GAAP.

SOX Section 302 require Multiple choice question. Violations of SOX have been reported to the SEC COSO internal control requirements have been met the CFO and CEO of a public company to certify the financial statements Management has communicated with the auditors about financial statement deficiencies

the CFO and CEO of a public company to certify the financial statements

The conclusion stated in the opinion paragraph of the audit report should state whether Multiple choice question. the auditors raised any matters with the audit committee. internal controls have been evaluated. the financial statements are fair representations. audit procedures have been used.

the financial statements are fair representations.

Which management attitudinal risk factors indicate fraudulent financial reporting may exist? (Check all that apply.) Multiple select question. Ignorance of securities regulations Financial management's participation in selecting accounting principles Excessive interest by management in increasing share prices and earnings Lack of support or enforcement of entity ethical standards Management's unwillingness to correct significant problems with internal controls Committing to overly aggressive financial analysts' earnings estimates

Excessive interest by management in increasing share prices and earnings Lack of support or enforcement of entity ethical standards Management's unwillingness to correct significant problems with internal controls Committing to overly aggressive financial analysts' earnings estimates

How should an auditor meet a level of reasonable assurance? Multiple choice question. Ensure that the independence in fact standard has been met Exercise a level of care to avoid charges of negligence Assess whether the management audited the internal controls

Exercise a level of care to avoid charges of negligence

True or false: Auditing standards are the steps taken by the auditor during the course of audit to comply with GAAS. True false question. True False

False

True or false: Auditors should only communicate material fraud to those charged with governance True false question. True False

False

True or false: Withdrawal from the engagement is not allowed by SEC because the auditor was hired to do an audit and render an opinion. True false question. True False

False

The former CEO at Qwest Communications, Joseph Nacchio, often displayed which red flag in the fraud triangle? Multiple choice question. Had a poor attitude Purchased expensive homes in multiple countries Had a gambling addiction Focused only on meeting revenue targets

Focused only on meeting revenue targets

Why is it important that auditors communicate information about accounting estimates to those in charge of governance? (Select all that apply.) Multiple select question. Accounting estimates are determined by the external auditor. Future events can affect accounting estimates in a significant way. Accounting estimates can be highly significant to the financial statements. Accounting estimates are typically immaterial to the financial statements. Accounting estimates involve subjectivity and assumptions.

Future events can affect accounting estimates in a significant way. Accounting estimates can be highly significant to the financial statements. Accounting estimates involve subjectivity and assumptions.

An auditor's responsibility for detecting illegal acts that have a direct and material effect in the statements is _______ than responsibility to detect indirect effect items.

Greater

Michael Hudson, the former assistant treasurer at Fricsh's Restaurant, exhibited which pressure that should have been a red flag in the fraud triangle? Multiple choice question. Purchased expensive cars Had a gambling problem Had a poor attitude Focused on stock price only

Had a gambling problem

Which financial or profitability risk factors might motivate fraud? (Check all that apply.) Multiple select question. Estimates and judgments are made in the financial statements Inability to generate cash flows Recurring operating losses Unclear accounting or regulatory requirements

Inability to generate cash flows Recurring operating losses

Misstatements can occur because of: (Check all that apply.) Multiple select question. Incorrect estimates Audit assurance Errors or fraud Misapplication of GAAP Omission of financial statement information Audit procedures

Incorrect estimates Errors or fraud Misapplication of GAAP Omission of financial statement information

Materiality is judged both by the relative amount and by the nature of the item. The SEC identifies qualitative factors that may cause quantitatively small misstatements to become material in SAB 99, including (select all that apply): Multiple select question. It masks a change in earnings or other trends. It affects the registrant's compliance with regulatory requirements. It involves concealment of a lawful transaction. It changes a loss into income or vice versa.

It masks a change in earnings or other trends. It affects the registrant's compliance with regulatory requirements. It changes a loss into income or vice versa.

Rationalizations given for fraud include: (Check all that apply.) Multiple select question. Keep the stock price high Shareholders expect us to do it Lack of internal controls It is a temporary fix Aggressive accounting is acceptable

Keep the stock price high It is a temporary fix Aggressive accounting is acceptable

Individuals who are cunning and use charm, friendliness, self-disclosure, guilt, or pressure to get what they want can be described as: Multiple choice question. Machiavellian Utilitarian Narcissistic

Machiavellian

When the computer learns from the auditors clearing and classifying anomalies faster and better than the auditor, this is called: Multiple choice question. Data analytics Machine learning XBRL

Machine learning

To meet the general responsibilities related to the quality of professionals who perform an audit, an auditor should: (Check all that apply.) Multiple select question. Maintain independence in mental attitude Exercise due care in the performance of the audit and preparation of the report Take up the audits of only those businesses whose owners are personally known to the auditor Need not exercise any professional skepticism Have adequate technical training and proficiency

Maintain independence in mental attitude Exercise due care in the performance of the audit and preparation of the report Have adequate technical training and proficiency

Auditors render an independent opinion on the financial statements prepared by Multiple choice question. The audit firm The PCAOB The SEC Management

Management

The appropriateness of estimates in the financial statements depends on ____________ _____________

Management Judgement

Multiple Choice Question Auditors can't guarantee that fraud will be detected because Multiple choice question. Management may hide it from auditors Management prepares the statements Auditors are not always independent of management Audits are not designed to detect fraud

Management may hide it from auditors

.An unintended consequence of the materiality standard is Multiple choice question. Auditors withdraw from the engagement Auditors issue adverse opinions when the opinion should be modified Management might manipulate amounts to fall below the materiality level Items that conform with GAAP may be dismissed

Management might manipulate amounts to fall below the materiality level

What is the most common form of management fraud? Multiple choice question. Auditor deception of client Management's manipulation of financial statements Errors in accounting estimates Theft by employees who handle cash

Management's manipulation of financial statements

The fact that some matters are important to fair presentation of the financial statements, while other matters are not, is recognized by the concept of ________

Materiality

When should a qualified opinion be issued? (Check all that apply.) Multiple select question. Auditor was unable to obtain sufficient appropriate evidence of undetected misstatements that could be both material and pervasive Misstatements in the financial statements are both material and pervasive Misstatements in the financial statements are material but not pervasive Auditor was unable to obtain sufficient appropriate evidence, but the possible effects could be material but not pervasive Modified opinion is appropriate

Misstatements in the financial statements are material but not pervasive Auditor was unable to obtain sufficient appropriate evidence, but the possible effects could be material but not pervasive Modified opinion is appropriate

What rationalization did Dennis Kozlowski use in the Tyco fraud? Multiple choice question. Shareholders sanction it My predecessors did it It was a one-time fix Aggressive accounting is acceptable

My predecessors did it

These individuals may increase audit risk because they are obsessed with power, prestige, and are unable to see the destructive damage they cause to themselves and others may posses which personality type: Multiple choice question. Narcissistic Psychopathy Machiavellian

Narcissistic

What conditions generally exist when fraud occurs by management? (Check all that apply.) Multiple select question. Pressure or incentive to commit fraud Opportunity to commit fraud Failed audit Rationalizing the fraud act Persistent operating losses

Pressure or incentive to commit fraud Opportunity to commit fraud Rationalizing the fraud act

Pervasive effects on the financial statements require Multiple choice question. Professional judgment by the auditor Withdrawal from the engagement An adverse opinion A disclaimer of opinion

Professional judgment by the auditor

How did Michael Hudson, the former assistant treasurer at Frisch's Restaurant commit fraud? Multiple select question. Programmed the company payroll computer to pay himself additional funds Forged vendor statements Recorded revenue for product that never shipped Delayed the recording of expenses

Programmed the company payroll computer to pay himself additional funds Forged vendor statements

What is the purpose of auditing standards? Multiple choice question. Steps taken by the auditor during the course of the audit to comply with GAAS Decide on the opinion on the financial statements Necessary to ensure financial statements are in conformity with GAAP Provide a measure of audit quality and objectives to be achieved in the audit

Provide a measure of audit quality and objectives to be achieved in the audit

Falsification of financial statements and the failure an audit compromises Multiple choice question. Audits The expectation gap Audit independence Public trust of the auditor

Public trust of the auditor

.Auditors should plan and perform the audit to obtain ________ ________ about whether the financial statements are free of material misstatement.

Reasonable assurance

he degree of responsibility that the auditor is taking with respect to the opinion they issue on the financial statements is determined by the objectives of ________

Reporting

Each of the following has a role to play in developing financial statement form and content requirements: (Check all that apply.) Multiple select question. SEC The company under audit PCAOB The audit firm NYSE.

SEC PCAOB NYSE

Internal controls can help to reduce fraud involving cash receipts by Multiple select question. Segregating responsibilities Eliminating opportunities to commit fraud Eliminating pressures to commit fraud Reporting fraud to to the board of directors

Segregating responsibilities Eliminating opportunities to commit fraud

Communications with the audit committee about significant and critical accounting policies and practices should include Multiple choice question. The basis for the auditor's conclusions regarding the reasonableness of critical accounting policies The decision process used by the auditors to assess significant policies and practices Significant modifications to management disclosures recommended by the auditor but not followed by management Quantitative effects of management's disclosures on the financial statements

Significant modifications to management disclosures recommended by the auditor but not followed by management

Multiple Choice Question When should an auditor give an unmodified opinion? Multiple choice question. There are no internal control concerns Statements present fairly financial position, results of operations, and cash flows Statements were prepared by management Differences exist with management over financial reporting issues

Statements present fairly financial position, results of operations, and cash flows

Under the Private Securities Litigation Reform Act (PSLRA), how much time does a public company have to inform the SEC that their auditor has reported to the board of directors that no that remedial action has taken place to correct an illegal act? Multiple choice question. 1 business day 10 business days 5 business days 30 business days

1 business day

An auditor's ability to exercise professional skepticism depends on: (Check all that apply.) Multiple select question. Persistent questioning of management A critical assessment of audit evidence Approaching the audit with a questioning mind The culture of the audit firm

A critical assessment of audit evidence Approaching the audit with a questioning mind

The link between the ICFR and audit of financial statements is Multiple choice question. Audit reports do not have to include any references to ICFR The audit of ICFR should be integrated with the audit of financial statements Assessment of ICFR's is optional while audit opinions are required ICFR is only required when a modified opinion is given

The audit of ICFR should be integrated with the audit of financial statements

Which of the following are factors for disclosing Critical Audit Matters? (Select all that apply). Multiple select question. The degree of auditor judgment related to areas in the financial statements The auditor's assessment of the risk of material misstatement The professional qualifications of the auditor to address the matters The nature and extent of audit effort required to address the matter

The degree of auditor judgment related to areas in the financial statements The auditor's assessment of the risk of material misstatement The nature and extent of audit effort required to address the matter

In communicating with those charged with governance, the auditor should consider the following regarding the reasonableness of accounting estimates (check all that apply) Multiple select question. The degree of subjectivity in assumptions The immateriality of the estimates as a whole The nature of significant assumptions

The degree of subjectivity in assumptions The nature of significant assumptions

When should an auditor give a modified opinion? Multiple choice question. Statements present fairly financial position, results of operations, and cash flows There are no internal control concerns The financial statements are materially misstated Statements were prepared by management

The financial statements are materially misstated

PCAOB Form AP requires disclosure of which of the following? Multiple choice question. The names of junior auditors on the engagement A listing of all Critical Audit Matters The name of network firms that completed work on the audit

The name of network firms that completed work on the audit

The PCAOB Form AP require the disclosure of which of the following? Multiple choice question. The address of the engagement partner The name of the engagement partner The certifications the engagement partner holds

The name of the engagement partner

A common reason why management has the opportunity to commit fraud is Multiple choice question. They can override internal controls The audit committee is ineffective The auditors fail to meet their obligations It only occurs one time

They can override internal controls

The auditor should communicate asset misappropriations to Multiple choice question. The offending employee The SEC Those charged with governance Attorneys to determine legal obligations

Those charged with governance

Dennis Kozlowski's rationalization for committing fraud at Tyco was Multiple choice question. Because he could get away with it To keep up with the masters of the universe The board of directors approved it The auditors didn't care

To keep up with the masters of the universe

Audit committee communications about difficulties encountered during the audit include: (Check all that apply.) Multiple select question. Unreasonable restrictions placed by management during the audit Reluctance of management to provide going concern assessments when requested Changes in audit personnel due to conflicts with management Extensive effort required to obtain adequate audit evidence Conclusion that a modified opinion will be issued Significant delays by management in providing needed audit evidence

Unreasonable restrictions placed by management during the audit Reluctance of management to provide going concern assessments when requested Extensive effort required to obtain adequate audit evidence Significant delays by management in providing needed audit evidence

The financial statements and notes should be informative of matters that may affect: (Check all that apply.) Multiple select question. Internal controls User understandings Materiality The audit opinion

User understandings The audit opinion

When risks of material misstatements due to fraud exist, which of the following audit procedures can be used to demonstrate professional skepticism? (Check all that apply.) Multiple select question. Using specialists Inquiries of the predecessor auditor Examine documents from an independent source Communicate with the audit committee Third-party confirmations Analytical procedures

Using specialists Examine documents from an independent source Third-party confirmations Analytical procedures

There are several concerns over the use of Machine Based Learning Systems including (select all that apply): Multiple select question. AI can work on its own. AI cannot evaluate moral or ethical concerns. AI needs to have controls. AI cannot see the big picture.

AI cannot evaluate moral or ethical concerns. AI needs to have controls. AI cannot see the big picture.

Unexpected extensive effort required by the auditor to obtain sufficient appropriate audit evidence should be communicated to: Multiple choice question. Company management The SEC The audit committee The FASB

The audit committee

How can a risk management culture be improved? (Check all that apply.) Multiple select question. Engage the external auditors to develop the systems Commitment to integrity and ethical values Evaluating the culture of the organization Senior management and the board should adopt internal control procedures

Commitment to integrity and ethical values Senior management and the board should adopt internal control procedures

Audit committee responsibilities for fraud risk assessment include: Multiple choice question. Evaluate management's identification of fraud risks Discuss fraud risk assessment with external auditors Report unresolved matters to the SEC Consider any Dodd-Frank reporting responsibilities

Evaluate management's identification of fraud risks

Which of the following must be considered when considering materiality in financial statements? Multiple choice question. Both quantitative and qualitative factors Qualitative factors but not quantitative factors Quantitative factors but not qualitative factors

Both quantitative and qualitative factors

What is the purpose of assessing audit risk and materiality? Multiple choice question. To draw a conclusion about the proper opinion to issue The conclusion is based on assessment of audit evidence gathered and materiality Evaluate independence issues Evaluate internal controls Determine nature, timing, and extent of auditing procedures

Determine nature, timing, and extent of auditing procedures

Due care requires Multiple choice question. An opinion whether such care has been exercised An opinion whether the statements conform to GAAP Independence in mental attitude Diligence and competence

Diligence and competence

Which of the following are ways to document professional skepticism? (Select all that apply.) Multiple select question. Document additional corroboration of management's views Obtain direct knowledge though observation Maintain a materiality threshold percentage Document discussions with the audit committee Obtain third-party confirmations

Document additional corroboration of management's views Obtain direct knowledge though observation Obtain third-party confirmations

The ethical standard that typically drives fraud is Multiple choice question. Egoism Justice Enlightened egoism Utilitarianism

Egoism

As a part of the oversight responsibility of the audit committee, which procedures strengthen internal controls? (Check all that apply.) Multiple select question. Encourage employees to report concerns about unethical behavior A summary of unethical conduct, follow-up and disposition is provided to those charged with governance. Discussions of risk factors with shareholders Periodic reports describing fraud and unethical conduct are sent to the SEC

Encourage employees to report concerns about unethical behavior A summary of unethical conduct, follow-up and disposition is provided to those charged with governance.

What is the goal of the audit committee's evaluation of fraud risk and management's oversight responsibilities? (Check all that apply.) Multiple select question. Support communications with the external auditor about fraud Ensure that management fulfills its responsibilities Serve as a deterrent to senior management engaging in fraud Meet SEC reporting requirements

Ensure that management fulfills its responsibilities Serve as a deterrent to senior management engaging in fraud

Misappropriation of assets can be reduced by: Multiple choice question. Reporting fraud to the auditors Eliminating the opportunity to commit fraud Establishing internal controls to safeguard assets Creating ethical standards to prevent it

Establishing internal controls to safeguard assets

Which estimates should be communicated to the audit committee in addition to critical accounting estimates? Multiple choice question. Estimates that were used by the auditor to form an opinion Estimates with a high degree of subjectivity Estimates that create changes in accounting policies Estimates that have been changed by management

Estimates with a high degree of subjectivity