FOLLOWING
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
IDENTIFY THE EFFECT OF THE FOLLOWING
TRANSACTIONS TO THE RISK OF MATERIAL
MISSTATEMENT TO FINANCIAL STATEMENTS.
(INCREASE, DECREASE, NO EFFECT)
1.The company has shown an ability to
generate a positive cash flow from
operations, while reporting earnings and
earnings growth.
2.The employees of the company are being
paid on a weekly basis.
3. The internal audit reports to the chairman of
the board who is a minority stockholder.
4. The company recently opened up its new
international branch in HongKong, catering
to OFWs in that location.
5. The accounting department has experienced
a low turnover rate of key personne
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