1.The following items are included in the 10K EXCEPT which of the following?
b. Financial statements
c. Auditor's letter of opinion
d. Required Supplemental Information (RSI)
e. Notes to accompany the financial statements
2.The following items are included in the CAFR EXCEPT which of the following?
a. Required Supplemental Information (RSI)
c. Basic Earnings Per Share (EPS)
d. Government-wide financial statements
e. Fund statements
3. Guidance for not-for-profit organizations comes from which of the following?
d. All of the above
e. None of the above
4.Which of the following would not be an important factor in understanding an entity's industry, regulatory environment and other external factors?
a. The competitive environment.
b. The political environment.
c. Relevant accounting pronouncements.
d. Technological developments.
e. The nature of the entity.
5. Which of the following would not be an important aspect of basic financial statement assertions about presentation and disclosure:
a. Occurrence and rights and obligations.
d. Internal control.
6. Which of these is not a risk factor?
a. Inherent risk.
b. Control risk.
c. Detection risk.
d. Assurance risk.
e. All of the above are risk factors.
7. Which of the following statements about understanding internal control is not true:
a.The auditor uses the knowledge of the system of internal control to design further audit procedures to collect evidence.
b.In the presence of a strong system of internal control, the auditor may choose to collect less evidence about transactions or balances.
c.In the audit of a private company, it is necessary to express an opinion on the system of internal control over financial reporting.
d.A thorough understanding of the system of internal control assists the auditor in identifying potential types of misstatements.
e.A thorough understanding of the system of internal control assists the auditor in understanding the risk of material misstatements.
The solution answer various multiple choice finance related questions.