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ACC 562 Final Exam Guide
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1.Developing an understanding of the client's business and industry is
essential to proficiency as discussed in the general standards of
GAAS. (Points: 4)
True
False
2. Ratio analysis only involves a year-to-year comparison of account
balances. (Points: 4)
True
False
3. Control is considered to be part of corporate governance. (Points:
4)
True
False
4. When control risk is assessed at a maximum level, the auditor
assumes that the internal controls are reliable in preventing or
detecting material misstatements. (Points: 4)
True
False
5. Accounting subsystems are accounting cycles composed of one or
more accounting applications. (Points: 4)

True
False
6. Presentation and disclosure assertions imply that all transactions
and balances are properly presented, disclosures represent what
actually happened, and the footnote disclosures are appropriate and
adequate. (Points: 4)
True
False
7. Vouching recorded transactions involves taking a sample from the
journal and tracing them back to the source documents to ensure they
occurred. (Points: 4)
True
False
8. Audit documentation serves as support for the financial statements.
(Points: 4)
True
False
9. In analysis of the results of audit sampling, an auditor may
determine that the sample size must be increased. (Points: 4)
True
False
10. The revenue cycle considered by auditors includes the sales
process but not collections. (Points: 4)
True
False
11. Inventory is complex and typically considered a high-risk area in
audits of service firms. (Points: 4)
True
False

12. An auditor can utilize a cross-sectional analysis for a client
operating in multiple locations to identify areas of further inventory
testing. (Points: 4)
True
False
13. Legal expenses are reviewed by auditors for possible litigation
and related FAS 5 treatment. (Points: 4)
True
False
14. An imprest payroll account will never reach a zero balance.
(Points: 4)
True
False
15. A turnaround document is an effective completeness control
because they list essential information for further processing of the
collection on account. (Points: 4)
True
False
16. Auditors will perform an analysis of leases using SFAS 13 criteria
and other EITF statements to substantiate the accounting treatment.
(Points: 4)
True
False
17. Contingencies are considered by the auditor in relation to the
SFAS No. 5 criteria to determine whether material contingencies exist
with the client and, if so, that they are properly accrued or disclosed.
(Points: 4)
True
False

18. An example of a Type II Subsequent Event includes the
settlement two months after year-end of a liability for an amount well
in excess of the amount that was accrued at year-end. (Points: 4)
True
False
19. A report on agreed-upon procedures issued by accountants
provides the lowest form of attestation assurance. (Points: 4)
True
False
20. The need for assurance services arises for all of the following
reasons EXCEPT: (Points: 4)
potential bias in providing information.
closeness between a user and the organization.
complexity of the processing systems.
remoteness between a user and the organization.
21. Which one of the following is not part of the attest process?
(Points: 4)
evaluating evidence against objective criteria
gathering evidence about assertions
proving the accuracy of the books and records
communicating the conclusions reached
22. Users can reasonably expect audited financial statements to be
(Points: 4)
complete and contain all important financial disclosures, be free
from material misstatements and be presented fairly.
complete and contain all-important financial disclosures, be free
from material misstatements and be presented fairly according to
GAAP.
complete, be accurate and be presented fairly according to
GAAP.

complete and contain all-important financial disclosures, be free
from all misstatements and be presented fairly according to the
substance of GAAP.
23. Which one of the following is not a provider of assurance
services? (Points: 4)
CPAs
internal auditors
governmental auditors
AICPA
24. The primary governing board that performs quality reviews on
registered CPA firms that audit public companies is the (Points: 4)
PCAOB
GAO
AICPA
FASB
25. Management of an organization has the responsibility for all of
the following except: (Points: 4)
accounting principles used in financial reporting
engagement of a qualified auditor
internal control over financial reporting
financial statements and disclosures
26. The financial statement auditor must understand the client's
internal control as a component of the fieldwork standards. The one of
the reason for this understanding is so that the auditor may (Points: 4)
provide individual comments on internal control non-compliance.
become comfortable that the client will pay its audit bills.
assess materiality.
assess the risk of possible misstatements in the financial
statements.
27. For an auditor to be independent, he or she must be independent in
(Points: 4)

fact.
appearance.
fact and appearance.
either fact or appearance.
28. An auditor is concerned with materiality for which of the
following reasons? (Points: 4)
to assess internal control
to comply with the quality assurance standards of GAAS
to determine the effects of misstatements on the users of financial
information
to cut down on audit procedures and testing
29. A proper system of corporate governance is one that demands
(Points: 4)
decision making by auditors in place of management.
internal audit representation on the board of directors.
audit planning to obtain competent and sufficient audit evidence.
accountability back through the system to the shareholders.
30. In determining the types of activities, engagements and
interactions an auditor should have with a client, the CPA and the
audit firm must (select the best answer) (Points: 4)
follow the rules exactly as they are written.
assess all of their relationships with every client to ensure that
independence is intact.
focus on client satisfaction above all other considerations
realize that ethics are only guidelines and a matter of personal
judgment.
31. The AICPA Principles of Professional Conduct include (Points: 4)
due professional care and supervision.
scope and nature of services and adequate training.
integrity and independence
public interest, integrity and objectivity.

32. A public client is required to report material changes in internal
control (Points: 4)
monthly.
quarterly.
annually.
never.
33. Programs written to accomplish specific processing tasks, such as
computing payroll, are (Points: 4)
application programs.
operating system programs.
Java scripts.
access control programs.
34. The combination of which functions in an information technology
environment are not necessarily a control weakness? (Points: 4)
user and programming functions
database administrator and data input functions
programmers and authorization of changes
users and certain data access
35. Backup controls, used to prevent data and software loss would
include procedures to: (Points: 4)
load balance in the event of heavy traffic across the network.
constantly monitor the network for intrusion and attack.
provide an alternate form of electricity to the corporate facilities.
fail-over to a mirrored storage device in the event of interruption
or loss.
36. Which one of the following is an example of an edit test for
limits? (Points: 4)

Only numbers are allowed to be input into the social security
number field and dashes are pre-formatted.
Each sales order is given an identifier that is also tagged to the
receipt of goods record, the customer invoice record and the cash
receipts record
The purchasing department may order materials up to $5,000 in
total before a second electronic authorization is required.
Supplies may not be purchased from any vendor not authorized
and existing in the vendor table.
37. The control totals used to ensure the completeness of processing
in a batch processing environment include (Points: 4)
record count.
control totals.
hash totals.
all of the above.
38. The type of test used to check that no hourly employee is paid
more than $400.00 in one week is: (Points: 4)
an edit test.
a batch control test.
an output control test.
none of the above.
39. Tagging and tracing might best be used to test which of the
following? (Points: 4)
The number of confirmations returned compared to the number of
confirmations sent out.
The corporate credit card is only being used for business
transactions.
All customer orders shipped were also invoiced and that cash was
received.
Quantities of product F411029 have been accurately counted in
the warehouse.

40. Which one of the following would be the least persuasive type of
evidence? (Points: 4)
Confirmations returned by bank directly to the auditor.
Letters of communication from the Securities Exchange
Commission.
Physical examination of perpetual inventory.
General ledger in a newly developed information system.
41. The primary support of an audit is (are) (Points: 4)
the financial statements.
the audit working papers.
the audit report.
the confirmation documentation.
42. The primary assertion that is satisfied by physically observing the
client's count of inventory is (Points: 4)
existence.
rights.
valuation.
completeness.
43. The audit team asks the client to pull a sample vendor files and
examines the invoices supporting the purchases of inventory items
during the year. What is the most probable reason for the use of this
evidence? (Points: 4)
Confirmation of vendors supplying inventory for existence.
Analytical procedures to determine completeness of inventory.
Testing for the valuation of inventory using the FIFO cost flow
assumption.
Reading the terms of the arrangements with vendors for
disclosure.
44. The extent of procedures is affected mostly by: (Points: 4)
the sheer volume of procedures to be applied by the auditor.

the time of year in which the client takes a physical inventory in
the warehouse.
the auditor's judgment that misstatements are probable in certain
balances.
the availability of the client's staff at or near the balance sheet
date.
45. An audit program is created to specify: (Points: 4)
the type of audit opinion to be rendered based upon procedures
performed.
the audit procedures that will be performed each year for the
client.
how an auditor should think while performing audit procedures.
objectives and procedures to be followed during the audit
process.
46. Which one of the following is primary reason for documenting
audit work? (Points: 4)
to prevent litigation by other parties that question the audit
performance.
to provide a stand-alone medium that gives audit conclusions and
supports the opinion.
to supply a point of reference for all auditors performing the work
subsequently.
to supply a point of reference for all auditors performing the work
subsequently.
47. Which of the following would most likely be considered
intentional misapplication of accounting principles on financial
statements? (Points: 4)
A capital lease is presented as periodic rent expense rather than
interest and depreciation.
A deferred tax asset is reduced to zero with a valuation
allowance.

A stock option is expensed even though the fair value of the
underlying stock on the date of grant was the same as the option's
exercise price.
Revenues for up-front fees are deferred rather than recognized
immediately.
48. The audit of financial statements includes the initial approach of
addressing fraud. How must an auditor address fraud in the planning
stage? (Points: 4)
The auditor must test for fraud in the planning stage by sampling
accounts.
The auditor must consider the likelihood of fraud existing in the
company in the planning stage.
The auditor must realize that most people are honest and not
automatically assume that fraud exists when planning the audit.
The auditor must not be aggressive in its initial approach to fraud
as trust may be lost by the client.
49. Which of the following creates an opportunity for fraud to be
committed in an organization? (Points: 4)
Management demands financial success.
Poor internal control.
Commitments tied to debt covenants.
Management is aggressive in its application of accounting rules.
50. Sam Jones, controller of Mitnikco, spends three days researching
the accounting statements to find loopholes in the "rules" and to make
a case for recognizing revenue earlier, rather than in later years. In the
end, Sam and the other members of management determine that they
will reduce the company's deferred revenue accounts and begin
accounting for all revenues as agreements are signed. What are the
motivations of Mitnikco management based solely on the information
above? (Points: 4)
Pressures

Opportunity
Rationalization
Skepticism
51. Sampling risk is the risk that (Points: 4)
the sample will not contain characteristics representative of the
population such that inferences made about that population will be
incorrect.
the population will not contain characteristics representative of
the sample such that inferences made about that sample will be
incorrect.
Neither A nor B is correct.
Both A and B are correct.
52. The sample size varies directly with (Points: 4)
the expected failure rate.
the tolerable error rate.
the allowable risk of assessing control risk too low.
the nonsampling risk
53. The steps used in sampling during substantive testing includes the
determination of each of the following except (Points: 4)
the audit objective.
the method of selecting a sample.
expected misstatement conditions
control failure risk.
54. The design of a PPS sample requires the auditor to determine all
of the following except (Points: 4)
detection risk.
inherent risk.
tolerable misstatement.
expected misstatement in the account balance.

55. Which of the following is the best example of the control
objective in the revenue cycle that all transactions are recorded
accurately? (Points: 4)
Sales are recorded at the invoice price expected to be collected
from customers.
Sales orders have sequential numbering.
Recorded sales transactions are evidenced by valid invoices and
shipping documents.
Credits to customer accounts are classified as liabilities.
56. In an audit of financial statements, the risk of the high rate of
return of products sold includes that of (Points: 4)
sales that are recorded improperly.
an estimate of accrued returns that reduces net income.
a reduction of net sales for an increase to the sales returns and
allowance account.
consignment goods that are returned and forwarded to third
parties.
57. Confirmations that are sent to select customers asking them to
review the current balance due the client as shown on the client's
statement and return the letters directly to the auditor indicating
whether they agree with the indicated balance, are known as (Points:
4)
direct confirmations.
indirect confirmations.
positive confirmations.
negative confirmations.
58. Which of the following is an example of the type of analytics that
an auditor would use for inventory? (Points: 4)

Number of day's sales in receivables compared to industry
averages.
Inventory turnover for the previous five years.
Number of obsolete units this period compared to last.
Salaries of marketing personnel as a percent of total inventory.
59. Which one of the following accounts would an auditor most likely
test by performing analytical procedures? (Points: 4)
Sales commissions expense.
Legal expenses.
Repairs and maintenance expense.
Travel expense.
60. Operational audits of cash management seek to identify areas in
which cash management may be improved to contribute to the overall
profitability and effectiveness of the organization. The internal auditor
would use which of the following procedures on an operational audit
of cash? (Points: 4)
determine the compliance of treasury activities with company
policy
review procedures for identifying and investing excess funds
review procedures for handling cash receipts
all of the above
61. Which represents the most significant risk associated with
restructuring liabilities on the financial statements? (Points: 4)
Future smoothing of income by releasing the reserves.
Related party transactions that are not recorded at arms-length.
Understatement of assets in the period of recording the liabilities.
Payroll liabilities that are not disclosed in the notes.
62. All of the following are significant issues for consideration when
auditing for the impairment of goodwill, except (Points: 4)
timing of the assessment by management.

amortization in years of the goodwill.
clear objective evidence supporting the assessment.
understanding the client's business and its risks.
63. Simco's shaving products division was acquired over ten years ago
in a purchase transaction by BlizzardCraft. The related goodwill was
amortized until 2002 and $4.5 million remained on the books
thereafter. In 2008, Simco's production machinery was assessed for
impairment as a long-lived asset because of obsolescence issues.
What relationship will the auditors most likely make between the
facts stated above? (Points: 4)
BlizzardCraft erroneously treated the acquisition of Simco as a
purchase transaction when it should have been a pooling of interests.
Simco should not have amortized goodwill previous to 2002.
Simco's goodwill should have been written off when purchased
by BlizzardCraft in a one-time transaction.
The goodwill related to Simco may have been impaired during
2008.
64. All of the following represent a related entity to an organization
except (Points: 4)
the president's son.
an affiliate with common ownership.
customers.
primary owners.
65. All of the following represent equity issuance requiring prominent
accounting, presentation and disclosure treatment, except (Points: 4)
stock with beneficial conversion features.
Warrants issued to a consultant for services performed.
Preferred stock that is cumulative and par value is $0.50 per
share.
Dividends have not been paid on common stock since inception.

66. The auditor will examine proceeds and trace them to recorded
amounts of the par value of common stock to determine that (Points:
4)
shares exist and have valid stock certificates.
proceeds have been properly distributed between common stock
and additional paid-in capital.
dividends have been issued in accordance with the stock
indenture agreement as approved by the board.
shareholders actually have the rights to shares issued by the
company in exchange for subscribed funds.
67. Which of the following is a tool that is best used by the audit team
to determine if the client has included all disclosures? (Points: 4)
Management representation letter.
GAAS.
Inquiry of the CFO.
Checklists.
68. The auditor is responsible for evaluating the likelihood of a client
continuing as a going concern for a reasonable period of time. A
reasonable period of time is (Points: 4)
one year from the audit report date.
one year from the last day of field work.
one year from the balance sheet date.
two years from the balance sheet date.
69. Rock School, Inc. has a matter of material litigation that is
threatened, but that has not gone to trial. The auditor's consideration
of such a matter will most likely include all of the following except
(Points: 4)
sending a letter to the client's attorneys for more information
discussions of the matter with the client and the client's insurance
adjuster.
confirmation with the harmed party regarding the amount that
will be claimed.

assessment of proper accrual or disclosure by the client in
accordance with SFAS No. 5.
70. When the financial statements contain a material departure from
GAAP that the auditor believes is justified, justification (Points: 4)
should appear in a footnote.
should appear in a paragraph added before the scope paragraph.
should appear in the opening paragraph.
should appear in a paragraph added before the opinion paragraph.
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ACC 562 Midterm Exam Guide
Question 1
CPAs are licensed by the
Question 2
The Certified Internal Auditor program is administered by the
Question 3
The objective of an operational audit is to
Question 4
As it relates to an audit, materiality is
Question 5

Independent professional services that are provided on
financial or other information that improve the quality of decision
making are known as
Question 6
An expectation of the public is that the auditor will recognize
that the primary users of audit assurance are
Question 7
The primary governing board that performs quality reviews on
registered CPA firms that audit public companies is the
Question 8
An audit which has as its purpose the evaluation of the
economy and efficiency with which resources are employed is known
as a(n)
Question 9
Management of a company is responsible for
Question 10
The audit agency for the U. S. Congress is the
Question 11
An audit committee must be comprised of outside directors
and at least one outside financial expert. Which of the following is
considered an outside director?
Question 12

A proper system of corporate governance is one that demands
Question 13
Section 304 of the Sarbanes-Oxley Act requires executives to
forfeit any bonus or incentive-based pay or profits (including stock
options) from the sale of stock received in the twelve months prior to
an earnings restatement. This is often referred to as:
Question 14
Which one of the following will provide auditing standards of
public companies?
Question 15
The responsibility for operating an enterprise is delegated to
the:
Question 16
The Sarbanes-Oxley Act of 2002 requires which of the
following?
Question 17
The audit client of the CPA firm is:
Question 18
The Public Company Accounting Oversight Board was
established by:
Question 19
Audit committees are required to have what person in its
composition?
Question 20

Corporate governance is a process by which the owners and
creditors of an organization
Question 21
In determining the types of activities, engagements and
audit firm must do which of the following?
Question 22
Independence is not required for which of the following types
of services?
Question 23
The AICPA Principles of Professional Conduct include which
of the following?
Question 24
An auditor that has an attitude that includes a questioning
mind and a critical assessment of audit evidence is considered which
of the following?
Question 25
A CPA firm is considered independent when it performs
which of the following services for a publicly traded audit client?
Question 26
Information about a client that cannot be subpoenaed by a
court of law is referred to as what type of information?
Question 27
Members of the AICPA are required to act with integrity and
objectivity for which of the following engagements?
Question 28

Which one of the following is an example of a conflict of
interest for a CPA?
Question 29
A CPA may only practice public accounting in which of the
following forms?
Question 30
Which of the following describes a situation in which moral
duties or obligations conflict and one action is not necessarily the
correct action?
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ACC 562 Week 1 DQs
Question 1
CPAs are licensed by the
Question 2
The Certified Internal Auditor program is administered by the
Question 3
The objective of an operational audit is to
Question 4
As it relates to an audit, materiality is

Question 5
Independent professional services that are provided on
financial or other information that improve the quality of decision
making are known as
Question 6
An expectation of the public is that the auditor will recognize
that the primary users of audit assurance are
Question 7
The primary governing board that performs quality reviews on
registered CPA firms that audit public companies is the
Question 8
An audit which has as its purpose the evaluation of the
economy and efficiency with which resources are employed is known
as a(n)
Question 9
Management of a company is responsible for
Question 10
The audit agency for the U. S. Congress is the
Question 11
An audit committee must be comprised of outside directors
and at least one outside financial expert. Which of the following is
considered an outside director?

Question 12
A proper system of corporate governance is one that demands
Question 13
Section 304 of the Sarbanes-Oxley Act requires executives to
forfeit any bonus or incentive-based pay or profits (including stock
options) from the sale of stock received in the twelve months prior to
an earnings restatement. This is often referred to as:
Question 14
Which one of the following will provide auditing standards of
public companies?
Question 15
The responsibility for operating an enterprise is delegated to
the:
Question 16
The Sarbanes-Oxley Act of 2002 requires which of the
following?
Question 17
The audit client of the CPA firm is:
Question 18
The Public Company Accounting Oversight Board was
established by:
Question 19
Audit committees are required to have what person in its
composition?

Question 20
Corporate governance is a process by which the owners and
creditors of an organization
Question 21
In determining the types of activities, engagements and
audit firm must do which of the following?
Question 22
Independence is not required for which of the following types
of services?
Question 23
The AICPA Principles of Professional Conduct include which
of the following?
Question 24
An auditor that has an attitude that includes a questioning
mind and a critical assessment of audit evidence is considered which
of the following?
Question 25
A CPA firm is considered independent when it performs
which of the following services for a publicly traded audit client?
Question 26
Information about a client that cannot be subpoenaed by a
court of law is referred to as what type of information?
Question 27
Members of the AICPA are required to act with integrity and
objectivity for which of the following engagements?

Question 28
Which one of the following is an example of a conflict of
interest for a CPA?
Question 29
A CPA may only practice public accounting in which of the
following forms?
Question 30
Which of the following describes a situation in which moral
duties or obligations conflict and one action is not necessarily the
correct action?
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ACC 562 Week 2 DQs
Analyze the changes made to corporate governance rules since the
implementation of the Sarbanes–Oxley Act of 2002. Based on your
analysis, formulate an opinion on whether or not these changes are
sufficient in preventing financial fraud. Provide a rationale for your
response.
Debate it! Audit committees are an effective tool for detecting and
preventing fraud. Provide a rationale for your response.
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ACC 562 Week 3 Assignment 1 Madoff
Securities (2 Papers)

Determine the regulatory oversight that was in place while the Ponzi
scheme was operating, and speculate on the main reasons why they
did not discover the scheme.
Assume you are an auditor for a firm that had $10 million dollars
invested in Madoff Securities.
Determine the fundamental audit procedures that you should have
applied to this investment.
Predict the way in which a peer review of Friehling and Horowitz
would have uncovered the scheme related to Madoff Securities.
Pretend you are Harry Markopolos and suggest one (1) strategy,
different from that of the case study, to expose the potential fraud.
Provide a rationale to support the suggestion.
Analyze the role of the audit committee for Madoff Securities in
regard to the discovery of Ponzi scheme, and suggest one (1) action
the audit committee could have taken in order to prevent or detect the
fraud. Provide a rationale to support the suggestion
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ACC 562 Week 3 DQs

From the case study, use the ethical framework to propose a course of
action that you would take concerning the audit. Provide a rationale
for your response.
Imagine that you work for an audit firm and the firm selected you to
assess its auditor independence and the potential threats to the firm.
Determine at least two (2) potential threats to auditor independence
and recommend one (1) strategy for the firm to eliminate or mitigate
those threats you determined.
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ACC 562 Week 4 DQs
From the first e-Activity, determine at least two (2) AICPA
Professional Conduct principles that are most likely to be violated.
Provide a rationale to support your response.
•From the second e-Activity, recommend at least two (2) additional
responsibilities that the audit committee should take in order to
improve its effectiveness in detecting or preventing financial fraud.
Provide a rationale to support your recommendation.
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ACC 562 Week 5 DQs

Imagine you work for an auditing firm. Your most recent task is to
determine whether or not your firm should bid to perform the auditing
services of a public company. Determine the fundamental kind of
information that you need in order to make an informed decision as to
whether or not to bid on the audit. Provide a rationale to support your
response.
From the case study, analyze the key risk areas associated with an
audit of Lincoln Federal Savings and Loan. Next, recommend at least
two (2) risk areas that should be included in the audit plan. Provide a
rationale to support your recommendation
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ACC 562 Week 6 DQs
From the e-Activity, support or critique the idea that the Committee
of Sponsoring Organization of the Treadway Commission (COSO)
transition would strengthen internal controls over financial reporting
in publicly traded companies. Provide a rationale to support your
response.
From the case study, determine the fundamental control deficiencies
associated with the credit function. Next, propose at least one (1)
control improvement that the credit department management could
make in the process. Provide a rationale to support your response.
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ACC 562 Week 7 Assignment 2 Cardillo Travel
Systems, Inc. (2 Papers)
Review the Cardillo Travel Systems case, located in Chapter 6 of
your textbook.
Write a four to five (4-5) page paper in which you:
Explain the Securities and Exchange Commission’s rationale to
charge Cardillo executives with each of the following violations:
a. making false representations to outside auditors
b. failing to maintain accurate financial records
c. failing to file prompt financial reports with the SEC
d. violating the insider trading provisions of the federal securities laws
Determine who was in violation or compliance of the AICPA’s Code
of Professional Conduct in this case study and analyze the key reasons
why they were or were not in compliance. Provide support for the
rationale.
Analyze the actions taken by Cardillo’s outside auditors and evaluate
the level of efficiency of the audit risk management in this case study.
Provide support for the rationale.
Determine whether or not the five (5) components of internal control
were being followed. Support the response with at least two (2)
examples.
Create an argument for or against whether auditors have a
responsibility to assess the judgment of the decisions made by
Cardillo’s management. Support the argument.

Use at least two (2) quality academic resources in this assignment.
Note: Wikipedia and similar type Websites do not qualify as
academic resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size 12),
with one-inch margins on all sides; citations and references must
follow APA or school-specific format. Check with your professor for
any additional instructions.
· Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the date.
The cover page and the reference page are not included in the required
assignment page leng
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ACC 562 Week 7 DQs
From the e-Activity, determine the main reasons why several
members of top management in Phar-Mor perpetrated the financial
statement fraud. Next, recommend one (1) strategy that the auditors
might have taken to detect or prevent the fraud. Provide a rationale to
support your recommendation.
From the case study, analyze the financial data as presented. Next,
choose at least one (1) pattern within the data that appears to be
inconsistent, and propose one (1) strategy that one could use to audit
this pattern. Provide a rationale to support your response
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ACC 562 Week 9 DQs
From the case study, determine the main potential ethical dilemmas.
Next, use the seven (7) steps in the ethical decision-making
framework to recommend one (1) course of action you would take in
order to avoid the ethical dilemmas. Provide a rationale to support
your recommendation.
1. Identify the ethical issue
2. Determine who are the affected parties and identify their rights
3. Determine the most important rights
4. Develop alternative courses of action
5. Determine the likely consequences of each proposed course of
action
6. Assess the possible consequences including an estimation of the
greatest good for the greatest number
From the case study, based on your recommendation in Part I of this
discussion, suggest one (1) strategy that would support you making
the right decision without undermining the manager’s confidence in
your problem-solving ability in a difficult situation. Provide a
rationale to support your response.
*******************************************************
ACC 562 Week 9 DQs

From the case study, determine the main potential ethical dilemmas.
Next, use the seven (7) steps in the ethical decision-making
framework to recommend one (1) course of action you would take in
order to avoid the ethical dilemmas. Provide a rationale to support
your recommendation.
1. Identify the ethical issue
2. Determine who are the affected parties and identify their rights
3. Determine the most important rights
4. Develop alternative courses of action
5. Determine the likely consequences of each proposed course of
action
6. Assess the possible consequences including an estimation of the
greatest good for the greatest number
From the case study, based on your recommendation in Part I of this
discussion, suggest one (1) strategy that would support you making
the right decision without undermining the manager’s confidence in
your problem-solving ability in a difficult situation. Provide a
rationale to support your response.
*******************************************************
ACC 562 Week 10 Assignment 3 Freescale
Semiconductors, Inc (2 PPT)
Review the Freescale Semiconductor case, located in Chapter 9 of
your textbook.

Prepare a twelve to twenty (12-20) slide PowerPoint presentation with
speaker notes in which you:
1. Give your opinion as to whether or not additional laws and harsher
penalties on financial fraud can eliminate or mitigate financial fraud.
Support the rationale.
2. Suggest three (3) new strategies that you believe the government
can implement to eliminate or mitigate insider trading. Provide a
rationale to support the suggestion.
3. In this case study, leaked merger and acquisition information was
used to enable the fraud. Determine the key internal controls needed
over the communication of confidential information to outside parties,
and analyze the manner in which these controls act as a deterrent to
fraudulent activities.
4. Pretend you are Donna Murdoch in this case study and propose an
alternative plan to act on the leaked information. Next, recommend
one (1) strategy to communicate the alternative plan and determine
whom the plan should be communicated with. Justify the response.
5. In this case study, E&Y was providing a consulting service to The
Blackstone Group related to its planned acquisition of Freescale
Semiconductor. Compare and contrast the different auditor’s
professional responsibilities between consulting engagements and
audit engagements.
6. Take a position on whether more legislative and / or regulatory
agency oversight will increase or decrease corporate fraud. Provide a
rationale to support the position.
7. Use at least two (2) quality academic resources in this assignment.
Note: Wikipedia and similar type Websites do not qualify as
academic resources.
Your assignment must follow these formatting requirements:

Apply APA standards to citation of sources
No more than four (4) bullets per slide
No more than six (6) words per bullet
Headings – Times New Roman Font – 36 Points
Bullets – Times New Roman Font – 24 Points
Add bulleted speakers notes
Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the date.
*******************************************************
ACC 562 Week 10 DQs
From the case study, evaluate the quality of REDTOP’s internal audit
function. Based on your evaluation, recommend at least two (2)
changes that you would make in order to improve the quality of
REDTOP’s internal audit function. Provide a rationale to support your
response.
From the case study, give your opinion as to whether or not your
external audit engagement team could use REDTOP’s internal audit
function in another fashion, as opposed to merely relying on existing
internal audits in order to perform the overall audit of REDTOP
Sports Company. Recommend one (1) alternative to using the work

that the internal audit has already yielded as part of your external
audit. Provide a rationale to support your response.
*******************************************************
ACC 562 Week 11 DQs
Discuss one (1) way in which you anticipate using what you have
learned from this course in your current or future career. Provide one
(1) specific example to support your response.
Speculate on one (1) specific auditing area presented in this course
that you believe may be eliminated, added, or changed in the next ten
(10) years. Provide a rationale to support your response.
*******************************************************

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