ACC 562 Course Great Wisdom / tutorialrank.com ACC 562 Course Great Wisdom / tutorialrank.com | Page 17

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.