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  • Exam Code: DCP-111C
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NEW QUESTION: 1
Which of the following characteristics most likely would heighten an auditor's concern about the risk of
material misstatements in an entity's financial statements?
A. Employees who handle cash receipts are not bonded.
B. Bank reconciliations usually include in-transit deposits.
C. The entity's industry is experiencing declining customer demand.
D. Equipment is often sold at a loss before being fully depreciated.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. In assessing the risk related to material misstatements in an entity's financial
statements, the auditor would consider situations that threaten financial stability or profitability, since such
situations might provide an incentive to fraudulently misstate the financial statements. Included as one of
these characteristics is declining customer demand.
Choice "B" is incorrect. Even though the bonding of employees who handle cash is recommended, it is not
a significant characteristic in assessing the risk related to material misstatement in an entity's financial
statements.
Choice "C" is incorrect. Bank reconciliations with in-transit deposits are not unusual and would not
heighten the auditor's concern about the risk of material misstatement. In-transit deposits can be verified
with the bank at a later date.
Choice "D" is incorrect. Since depreciation does not adjust an asset to market value, the sale of equipment
at a loss before being fully depreciated is not unusual and would not heighten an auditor's concern.

NEW QUESTION: 2
ITサービスの管理にとって重要な状態変化とは何ですか?
A. イベント
B. インシデント
C. 既知のエラー
D. 問題
Answer: A

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