ACC 311 MIDTERM MCQS

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Why is there a need for an audit?

The problem is always present when the manager reports to the owners:
Will the owners believe this statement or not? Because, can report:

  1. there is a bug
  2. Fraud not disclosed
  3. be a reckless cheater
  4. The fly is intentionally deceiving
  5. Unable to publish relevant information
  6. Could not follow the rules

The solution to this credibility problem in the statements and accounts depends on the appointment of an independent person.
Call an auditor to review the financial statements and report your findings.
An additional point is that modern companies can be high on many national activities. the product
Integration of accounts of such groups and more complex operations.

Summarize the accounts of various agreements, legal entities and subsidiaries with accounting
Control System. Analysis of such accounts by trained independent experts Useful for those who control and operate companies, such as analyzing financial information as well as for owners and outsiders.

Many financial statements must comply with legal or other requirements. Most notably, all corporate accounts must comply with the requirements of the 1984 Directive, but many organizations (charities, construction associations, financial services businesses, etc.) have extensive accounting.

requirements required by relevant laws. In addition, all accounts must comply with the requirements of International Financial Reporting Standards (IFRS). The financial statements must be audited to ensure compliance with these requirements.

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