Which of the following is an underlying condition that in part creates the demand by users for reliable information? a. All of these. b. Decisions that are time-sensitive. c. Economic transactions that are numerous and complex. d. Financial decisions that are important to investors and users. e. Users separated from accounting records by distance and time.

Which of the following is an underlying condition that in part creates the demand by users for reliable information? a. All of these. b. Decisions that are time-sensitive. c. Economic transactions that are numerous and complex. d. Financial decisions that are important to investors and users. e. Users separated from accounting records by distance and time.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 30CYBK

See similar textbooks

Similar questions

Need the right answer dont use AI . . . .
Which of the following is not a major challenge facing the accounting profession? a. Nonfinancial measurements. b. Timeliness. c. Accounting for hard assets. d. Forward-looking information.
Which of the following is NOT a purpose of the Transaction Processing System?a. managing and reporting on the status of financial investmentsb. converting economic events into financial transactionsc. distributing essential information to operations personnel to support their daily operationsd. recording financial transactions in the accounting records
Which of the following is a major challenge facing the accounting profession? O A. Accounting for hard assets O B. Backward-looking information O. Financial measurements O D. Timeliness
1. An accounting information system should be designed to provide information that is useful. To be useful the information must be: a. qualitative rather than quantitative. b. unique and unavailable through other sources. c. historical in nature and not purport to predict the future. d. marginal between two alternatives. e. relevant, accurate, and timely.
TRUE or FALSE Accounting records and statements are based on the most reliable data available so that they will be as accurate and as useful as possible. This is called objectivity principle.
What is information asymmetry? Why is it considered a problem to the financial system?
Companies need to report both monetary and nonmonetary data and information. A. Define these two terms and provide examples of each. B. Discuss what sources are available that provide companies with both types of data and information.
Is it still necessary to record a transaction if it has no net effect on the accounting equation? Explain your answer.
1) Why is it not necessary to model activities such as data entry of information about customers or suppliers, mailing invoices to customers, and recording invoices received from suppliers as events in an REA diagram? 2) How can REA diagrams help an auditor understand a client’s business processes? 3) How would accounts payable be reflected in an REA diagram? Why?
Don't use AI.
1. Which of the following is NOT a financial transaction?a. purchase of productsb. cash receiptsc. update valid vendor filed. sale of inventory 2. The following are subsystems of the Accounting Information System, EXCEPTa. Transaction Processing System.b. Human Resources System.c. General Ledger/Financial Reporting System.d. Management Reporting System. 3. Which of the following is NOT a purpose of the Transaction Processing System?a. managing and reporting on the status of financial investmentsb. converting economic events into financial transactionsc. distributing essential information to operations personnel to support their dailyoperationsd. recording financial transactions in the accounting records 4. The objectives of the data collection activity of the general model for Accounting InformationSystems are to collect data that area. relevant and redundant.b. efficient and objective.c. efficient and redundant.d. efficient and relevant. 5. Which of the following is NOT a…