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ACC 562 Final Exam Guide

ACC 562 Final Exam Guide

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1 . Developing an understanding of the client ' s business and industry is essential to proficiency as discussed in the general standards of GAAS . ( Points : 4 ) True False
2 . Ratio analysis only involves a year-to-year comparison of account balances . ( Points : 4 ) True False
3 . Control is considered to be part of corporate governance . ( Points :
4 ) True False
4 . When control risk is assessed at a maximum level , the auditor assumes that the internal controls are reliable in preventing or detecting material misstatements . ( Points : 4 ) True False