Which of the following statements regarding users of financial information is correct? Managers of an entity are considered to be internal decision Accounting information is prepared for and useful to only outside decision External decision makers can obtain whatever financial data they need and whenever they need it. The members of the Board of Directors are not internal rather than external users of financial

Which of the following statements regarding users of financial information is correct? Managers of an entity are considered to be internal decision Accounting information is prepared for and useful to only outside decision External decision makers can obtain whatever financial data they need and whenever they need it. The members of the Board of Directors are not internal rather than external users of financial

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 3CYBK: Which of the following are affected by the quality of an organization’s internal controls? a....

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Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.
The primary objective of management accounting is to provide thea.shareholders with useful information for decision makingb. creditors with useful information for decision makingc. management with information useful for planning and control of operationsd. government agencies with information for tax and other compliance purposes
Which of the following parties is responsible for the fairness of the representations made in financial statements? * O Audit committee. Client's management. AICPA. OIndependent auditor. TOSHIBA
Which of the following is more likely to occur when an entity has effective internal controls? Select all that apply. unreliable financial reporting O effectiveness of operations O compliance with laws O achieve strategic objectives O achieve operating objectives
Who uses information from an accounting system? A. Stockholders, investors, taxing authorities, government regulators, and other interested parties use internal reporting for investment and long-range planning. Managers use external reporting for planning and controlling operations and long-range planning. B. Managers use internal reporting for planning and controlling operations, special decision-making, and long-range planning. Stockholders, investors, taxing authorities, government regulators, and other interested parties use external reporting. C. Managers, stockholders, and taxing authorities use internal reporting for planning and controlling operations. Investors, government regulators, and other interested parties use external reporting. D. Managers use internal reporting for planning and controlling operations, special decision-making, and long-range planning. Suppliers and customers use external reporting to plan for…
Which of the following parties is responsible for the fairness of the representations made in financial statements? * O AICPA. Independent auditor. O Audit committee. O Client's management.
What is involved in the legal requirements of financial governance? Select an answer: having a process in place for internal and external auditing of financial records collecting, managing, monitoring, and controlling financial information holding accountants legally responsible for the accuracy of financial reports
Who is responsible for the Governance function? a. Board of Directors b. Internal Auditors c. None of the choices d. Management e. Process Owners
Which is correct about financial information? a. Financial information’s purpose is only to comply with needs external users such as the government, investors and external stakeholders. b. Financial information can be used for forecasting and budgeting. c. Financial information deviates from the actual thus it justifies erroneous management decisions. d. Financial information is used by line managers to evaluate performance of staff positions. e. b & d f. All of the above g. None of the above
Under the Conceptual Framework of Financial Reporting, users of financial information may be classified into? Heavy users (management) and slight users (public, government). Primary users (existing and potential investors and creditors) and other users. Internal users (employees, customers) and external users (investors, creditors). Main users (existing investors, creditors) and incidental users (potential investors, creditors)
37. The following are value the auditors provide EXCEPT Group of answer choices Internal auditors serve the public and common interests by making sure that owners receive the return on their investments that they are entitled to, and that the means of generating those profits are within the confines of the law. Internal auditors contribute to the principal-agent relationship by making sure that these duties are defined, that structures are set to ensure behaviors are aligned with these objectives and making recommendations to the board and senior management when there are discrepancies jeopardizing the success of these arrangements. None of the choices Internal Auditors can help management identify, plan for, and respond effectively to the primary and secondary stakeholders, the organization will encounter less pushback and it will likely be able to operate with fewer disruptions. Internal Auditors are change catalyst.
The objective of general-purpose financial reporting is? to provide users with financial information that implies total freedom from error to provide companies with the option to select information that favors one set of interested parties over another O to provide financial information about the reporting entity that is useful to present and potential equity investors, lender and other creditors in making decisions in their capacity as capital providers to provide a metric for financial information used to determine when the boundary between two or more entities should disregarded and the entities considered to be a licensing arrangement