9) Which of the following statements is FALSE? A) Financial accounting information only serves a purpose if it is useful for decision making. B) Information quality is the suitability of information for a particular purpose in a specific task. C) Understandability and timeliness of data has a higher priority than relevance. D) Relevance of information carries more priority than consistency and verifiability.

9) Which of the following statements is FALSE? A) Financial accounting information only serves a purpose if it is useful for decision making. B) Information quality is the suitability of information for a particular purpose in a specific task. C) Understandability and timeliness of data has a higher priority than relevance. D) Relevance of information carries more priority than consistency and verifiability.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 3CYBK

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Similar questions

What is the most important quality for accounting information as identified in the conceptual framework? Explain why it is the most important. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Assuming that the data collected in the accounting information system is free from material errors but the processing of such data is inappropriate, would it still be possible to generate correct accounting information under these circumstances? If yes, how? If no, why?
An assurance service is defined as a service thata. Provides auditing services to nonfinancial information.b. Reviews unaudited financial information.c. Improves the quality of information for decision makers.d. Reduces the risk in management decision making.
dentify the statement that is incorrect regarding relevance and faithful representation. Select one: a. Financial information without both relevance and faithful representation is useful. b. Financial information without both relevance and faithful representation cannot be made useful by being more comparable, verifiable, timely or understandable. c. Financial information without both relevance and faithful representation is not useful. d. Financial information that is relevant and faithfully represented may still be useful even if it does not have any of the enhancing qualitative characteristics
Which is not a Risk Assessment Procedure? a. Ratio Analysis b. Observation of Activities c. Account Receivable confirmations d. Inspection of Documents e. Inquiry of Internal Auditors
S1. Operational risk, as opposed to efficiency, is the risk of loss resulting from inadequate internal processes, people, and systems or from external events. S2. FS audit is concerned on to see that the credit control has been strictly followed while operational audit is concerned on to study the credit control system for suggesting better measures as necessary. Which of the following statements is/are false?
What are the challenges and risks associated with implementing control procedures in accounting, and how can they be mitigated?
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Which statement is incorrect concerning the constraint on relevant and reliable information? * A. Information may be relevant but so unreliable in nature or representation that its recognition may be potentially misleading. B. The balance between benefit and cost is a pervasive constraint which means that the benefits derived from the information should exceed the cost of providing it. C. If there is undue delay in the reporting of information, it may lose its relevance and reliability. D. In achieving a balance between relevance and reliability, the overriding consideration is how best to satisfy the economic decision-making needs of users.
What is the term given for information that should NOT be taken from one source as the collectors of the information may have collected this for a specific purpose? a. Accuracy b. REliability c. Completeness d. Bias
Providing timely information about transactions in sufficient detail to permit proper classification and financial reporting is an example of a. the control environment. b. risk assessment. c. information and communication. d. monitoring.
From the options given below which of the following is not the reason of inherent limitation of audit? a. Limitation in accounting system O b. Use of human judgment O c. Poor planning O d. Human errors