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NEW QUESTION: 1
After determining that a related party transaction has, in fact, occurred, an auditor should:
A. Perform analytical procedures to verify whether similar transactions occurred, but were not recorded.
B. Obtain an understanding of the business purpose of the transaction.
C. Substantiate that the transaction was consummated on terms equivalent to an arm's-length
transaction.
D. Add a separate paragraph to the auditor's standard report to explain the transaction.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. After identifying the occurrence of a related party transaction, the auditor should
apply the procedures considered necessary to obtain satisfaction concerning the purpose and nature of
the transaction and its effect on the financial statements.
Choice "A" is incorrect. While an extra paragraph may be added to emphasize a matter, there is no
requirement that related party transactions be disclosed via explanatory language added to the auditor's
report.
Choice "B" is incorrect. Analytical procedures are generally not effective in the identification of related party
transactions.
Choice "D" is incorrect. It will generally not be possible to substantiate representations that the transaction
was consummated on terms equivalent to those that would have prevailed in an arm's-length transaction.
NEW QUESTION: 2
John works as a professional Ethical Hacker. He has been assigned the project of testing the security of www.we-are-secure.com. He is using a tool to crack the wireless encryption keys. The description of the tool is as follows:
Which of the following tools is John using to crack the wireless encryption keys?
A. PsPasswd
B. AirSnort
C. Cain
D. Kismet
Answer: B
NEW QUESTION: 3
Life-cycle phase definitions are different in different industries. For example, all of the following are terms that could be used in the closing phase of a project EXCEPT______________
A. Conversion
B. Final audit
C. Testing and commissioning
D. Implementation
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Regardless of the many terms used across many industries, implementation would be considered a term used in the executing phase in which the work is carried out and done. Kerzner 2009, 69
NEW QUESTION: 4
Who are the two primary technology decision makers andinfluencersfor Content Manager OnDemand solutions?
A. Chief Credit Officer and Chief Audit Executive
B. Chief Information Officer and IT Director
C. Chief Marketing Officer and Chief Compliance Officer
D. Chief Customer Officer and CFO
Answer: B