Chapter 01 An Introduction to Assurance and Financial Statement Auditing True / False Questions 1. | Independence standards are required for audits of public companies, but not for audits of private companies. True False | 2. | Decision makers demand reliable information that is provided by accountants. True False | 3. | Information asymmetry seldom occurs. True False | 4. | Conflicts of interest often occur between absentee owners and managers. True False |
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Code of Professional Ethics and Conduct The AICPA adopted a Code of Professional Ethics and Conduct made up of various rules to provide guidance to members on the performance of their professional responsibilities (Strayer, 2011). All of the rules set forth by the CPA are enforceable under the AICPA bylaws. These bylaws enforced by the Joint Ethics Enforcement Program which is sponsored by the AICPA and individual state societies for CPA’s. For the sake of this paper we
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products, and customers. Answer: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement LO: 1 Level: Easy 2. The plans of management are often expressed formally in: A) financial statements. B) performance reports. C) budgets. D) ledgers. Answer: C AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Measurement LO: 1 Level: Easy 3. The phase of accounting
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Easy OBJ: 10-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Decision Modeling 2. Which of the following costs would not be accounted for in a company's recordkeeping system? a. | an unexpired cost | b. | an expired cost | c. | a product cost | d. | an opportunity cost | ANS: D PTS: 1 DIF: Easy OBJ: 10-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Decision Modeling 3. Which of the following
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process costing is used in service companies. Ans: False AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Easy 2. A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing. Ans: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Easy 3. Normally a job cost sheet is not prepared for a
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Easy AICPA: BB-Legal 2. The federal government and the states have the same constitution. ANSWER: F PAGE: 2 type: N BUSPROG: Analytic LO: 1-1 Bloom’s: Knowledge DIF: Easy AICPA: BB-Legal 3. State constitutions are supreme within their respective borders. ANSWER: T PAGE: 2 type: N BUSPROG: Analytic LO: 1-1 Bloom’s: Comprehension DIF: Moderate AICPA: BB-Legal
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Chapter 01 The Changing Role of Managerial Accounting in a Dynamic Business Environment True / False Questions 1. Controlling involves the coordination of daily business functions within an organization. True False 2. Measuring the performance of managers and subunits is not an objective of managerial accounting. True False 3. Middle-level managers would likely be considered internal users of accounting information rather than external users. True False
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National: AACSB Analytic; Diversity; AICPA BB-Legal 2. Which area of law is most likely to impact directly the finance and accounting departments of a company? a. products liability b. employment discrimination c. credit regulation d. environmental law e. all of these are likely to impact about the same ANSWER: c (page 3) National: AACSB Analytic; AICPA BB-Legal 3.
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community, the AICPA is the certification issuing body for the CPA, and the IMA is the certification issuing body for the CMA. The AICPA stands for the “American Institute of CPA’s”, while IMA stands for the “Institute of Management Accountants”. The AICPA has six major roles in which it contributes to the well-being of accountants (Melancon, 2002). The first role is to obtain a larger involvement from the user’s of financial statements in establishing auditing standards. A second role of the AICPA is to
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Small business owners using certified public accountants, trust the professional to help their small business grow. According to Section 52 Article I Responsibilities in the American Institute of Certified Public Accountants (AICPA) Code of Conduct, members of the AICPA “have responsibilities
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