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NEW QUESTION: 1
Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent
financial reporting?
A. An overly complex organizational structure involving unusual lines of authority.
B. Financial management's participation in the initial selection of accounting principles.
C. Low growth and profitability as compared to other entities in the same industry.
D. Large amounts of liquid assets that are easily convertible into cash.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. The auditor identifies factors indicative of potential fraud ("fraud risk factors") as part
of assessing the risk of material misstatement. An overly complex organization structure involving unusual
lines of authority provides an opportunity for fraudulent financial reporting that would heighten the auditor's
concern.
Choice "A" is incorrect. Large amounts of liquid assets that are easily convertible into cash would heighten
an auditor's concern about misappropriation of assets, not about fraudulent financial reporting.
Choice "B" is incorrect. Low growth and profitability might heighten an auditor's concern if it became
severe or if management faced excessive pressure to meet financial expectations, but would not
necessarily in and of itself heighten an auditor's concern.
Choice "C" is incorrect. Nonfinancial management's participation in the selection of accounting principles
might heighten the auditor's concern; financial management is expected to participate in such activities.
NEW QUESTION: 2
Is this a building block in HPE Workload and Density Optimized (WDO) Reference Architectures to deploy HADOOP, Spark, and SAP HANA Vora? HPE Synergy Composable compute and storage nodes.
A. Yes
B. No
Answer: B
NEW QUESTION: 3
A. Option B
B. Option A
C. Option C
D. Option D
Answer: A
NEW QUESTION: 4
During the iteration planning of a newly onboarded agile team, the product owner adds a set of high priority user stones into the iteration backlog What should the team do first to define the tasks needed to implement the user stories?
A. Identify the Scrum Master
B. Assign tasks to each team member
C. Meet with me customer
D. Self-organize
Answer: D
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