Why would B be the answer?
1-Which of the following is the most important internal control activity over acquisitions of property, plant, and equipment?
B. Using a budget to forecast and control acquisitions and retirements.
2- In which of the following circumstances would an auditor expect to find that an entity implemented automated controls to reduce risks of misstatement?
D.
When transactions are high-volume and recurring
3- Accepting an engagement to compile an entity’s financial projection most likely would be inappropriate if the projection is to be included in a(n)
A. Offering statement of the entity’s initial public offering of common stock.
4-Feedback, feedforward, and preventive controls are important types of control systems and procedures for an accounting information system. Which of the following is in the correct order of feedback, feedforward, and preventive control systems?
D.
Cost accounting variances, cash budgeting, and organizational independence
5-When a practitioner examines a financial forecast that fails to disclose several significant assumptions used to prepare the forecast, the practitioner should describe the assumptions in the practitioner’s report and express
A. An adverse opinion.
6- When an accountant compiles a financial forecast, the accountant’s report should include a(n)
A. Caveat that the prospective results of the financial forecast may not be achieved.
.