Certain characteristics or circumstances may increase the susceptibility of assets to misappropriation. Opportunities to misappropriate assets increase due to the following except: a. Inventory items that are small in size, of high value, or in high demand. b. Known or anticipated future employee layoffs. c. Easily convertible assets, such as bearer bonds, diamonds, or computer chips. d. Fixed assets which are small in size, marketable, or lacking observable identification of ownership.

Certain characteristics or circumstances may
increase the susceptibility of assets to
misappropriation. Opportunities to
misappropriate assets increase due to the
following except:
a. Inventory items that are small in size, of
high value, or in high demand.
b. Known or anticipated future
employee layoffs.
c. Easily convertible assets, such as bearer
bonds, diamonds, or computer chips.
d. Fixed assets which are small in size,
marketable, or lacking observable
identification of ownership.
by

1 Answer

Answer :

Certain characteristics or circumstances may
increase the susceptibility of assets to
misappropriation. Opportunities to
misappropriate assets increase due to the
following except:
a. Inventory items that are small in size, of
high value, or in high demand.
b. Known or anticipated future
employee layoffs.
c. Easily convertible assets, such as bearer
bonds, diamonds, or computer chips.
d. Fixed assets which are small in size,
marketable, or lacking observable
identification of ownership.
by

Related questions

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Last Answer : An overly complex organizational structure involving unusual lines of authority.

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A 65 years-old woman arrived for dental therapy. The answered questionnaire shows that she is suffering from severe cirrhosis. The problem that can be anticipated in the routine dental therapy is: A. Extreme susceptibility to pain B. Tendency towards prolonged haemorrhage C. Recurring oral infection D. Increased tendency to syncope E. Difficulty in achieving adequate local anaesthesia

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Which of the following is not an inherent risk that is common to all clients in certain industries? a. Accounts receivable collection in the consumer loan industry. b. Potential inventory obsolescence in the fashion clothes industry. c. Brand loyalty in the cosmetics industry. d. Reserve for loss in the casualty insurance industry

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Description :  If the break-even point lies ____ anticipated demand, implying a loss on the product, and then the product may be discontinued or, may receive additional advertising and/or be re- priced to increase demand.

Last Answer : Ans. Above

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Which of the following statements would least likely appear in an auditor's engagement letter? a. Our engagement is subject to the risk that material errors, fraud, and defalcations, if they exist, will not be detected. b. During the course of our audit we may observe opportunities for economy in, or improved controls over, your operations. c. After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement. d. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses

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Last Answer : After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement.

Which of the following statements concerning the intended user of a professional accountant's report is incorrect? a. The responsible party and the intended user may both be within the same organization. b. The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner. c. In some circumstances, the intended user may be established by law. d. The responsible party may also be one of the intended users

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Examples of circumstances that may create self-interest threat include: a. Contingent fees relating to assurance engagements. b. A direct financial interest or material indirect financial interest in an assurance client. c. A loan or guarantee to or from an assurance client or any of its directors or officers. d. All of the above

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Last Answer : All of the above

Which of the following statements concerning the intended user of a professional accountant's report is incorrect? a. The responsible party and the intended user may both be within the same organization. b. The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner. c. In some circumstances, the intended user may be established by law. d. The responsible party may also be one of the intended users.

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Last Answer : The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner

Should the auditor uncover circumstances during the audit that may cause suspicions of management fraud, the auditor must a. Withdraw from engagement. b. Issue an adverse opinion. c. Issue a disclaimer. d. Evaluate their implications and consider the need to modify audit evidence

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Last Answer : Evaluate their implications and consider the need to modify audit evidence

Examples of circumstances that may create self-interest threat include: a. Contingent fees relating to assurance engagements. b. A direct financial interest or material indirect financial interest in an assurance client. c. A loan or guarantee to or from an assurance client or any of its directors or officers. d. All of the above

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Last Answer : All of the above

Which of the following is correct? a. The evidence which the auditor accumulates remains the same from audit to audit, but the general objectives vary, depending on the circumstances. b. The general audit objectives remain the same from audit to audit, but the evidence varies, depending on the circumstances. c. The circumstances may vary from audit to audit, but the evidence accumulated remains the samed. The general audit objectives may varyfrom audit to audit, but thecircumstances remain the same.

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Last Answer : The general audit objectives remain the same from audit to audit, but the evidence varies, depending on the circumstances

A CPA who has been retained by a client that operates in an industry totally new to him a. May not accept such an engagement. b. May accept the engagement only if the accounting firm specializes in the audit of commercial banks. c. May accept the engagement after attaining a suitable level of understanding of the transactions and accounting practices unique to commercial banking. d. May accept the engagement because training as a CPA transcends unique industry characteristics

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