Under the AICPA Code of Professional Conduct, a CPA may express an unmodified opinion on financial statements that contain a departure from GAAP if (s)he can demonstrate that because of unusual circumstances the financial statements would be misleading if the departure were not made. Which of the following is an example of unusual circumstances that could justify such a departure?
a. The evolution of a new form of business
b. An unusual degree of materiality
c. Conflicting industry practices
d. A theoretical disagreement with a standard issued by the FASB
Ans: a. The evolution of a new form of business
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Which of the following is a key difference between financial accounting information and management accounting information?
(a) The information is produced from different accounting records. (b) Only financial accounting information is produced by a professionally qualified accountant. (c) Financial accounting reports on historical events, management accounting is more concerned with future events. (d) The characteristics of reliability, relevance and timeliness do not apply to management information.
Tasks that are ________ in scope will provide a clear sense of the status of the project or of the interdependencies between tasks
A) Short B) Medium C) Long D) Optimal