FAR — Financial Accounting & Reporting — Quiz 87

Questions in this quiz (10)

1. Which of the following is an example of an internal control activity?

   • Segregation of duties
   • Increasing marketing expenses
   • Recording additional sales
   • Issuing new shares

2. Which internal control principle assigns different responsibilities for transactions?

   • Segregation of duties
   • Cost allocation
   • Budgeting
   • Performance evaluation

3. Which of the following helps reduce fraud risk in organizations?

   • Internal controls
   • Increasing inventory
   • Issuing debt
   • Expanding operations

4. Which of the following best describes an audit opinion?

   • Financial statements prepared by management
   • Auditor's conclusion on financial statements
   • Company performance summary
   • Statement of assets

5. Which audit opinion indicates financial statements are fairly presented?

   • Qualified opinion
   • Adverse opinion
   • Unqualified opinion
   • Disclaimer of opinion

6. Which audit opinion is issued when financial statements contain material misstatements?

   • Unqualified opinion
   • Qualified opinion
   • Adverse opinion
   • Disclaimer of opinion

7. Which audit opinion is issued when auditors cannot obtain sufficient evidence?

   • Qualified opinion
   • Disclaimer of opinion
   • Unqualified opinion
   • Adverse opinion

8. Which of the following best describes a qualified audit opinion?

   • Financial statements are misleading
   • Financial statements fairly presented except for specific issue
   • No opinion is provided
   • Financial statements are incomplete

9. Which document reports the results of an external audit?

   • Audit report
   • Income statement
   • Balance sheet
   • Statement of equity

10. Which of the following is a major component of an audit report?

    • Auditor's opinion
    • Payroll records
    • Purchase orders
    • Sales invoices