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NEW QUESTION: 1
An audit scope statement defines the limits and outcomes from an audit. Which of the following would NOT be included as part of an audit scope statement?
A. Reports
B. Exclusions
C. Certification
D. Billing
Answer: D
Explanation:
Billing for an audit, or other cost-related items, would not be part of an audit scope statement and would instead be handled prior to the actual audit as part of the contract between the organization and auditors.
Reports, exclusions to the scope of the audit, and required certifications on behalf of the systems or auditors are all crucial elements of an audit scope statement.
NEW QUESTION: 2
Which of the following events or transactions would require the recognition of deferred income tax consequences?
A. fines paid by a company as a result of law violations
B. life insurance proceeds received by a company as beneficiary of a policy on an officer
C. warranty expense accrued for financial accounting purposes but deducted as paid for tax purposes
Answer: C
Explanation:
The difference caused by the differences in recognition of warranty expense is the only item that is a timing difference. The others are all permanent differences.
NEW QUESTION: 3
When a medical office would like to exchange critical information such as a credit card number, which of the following protocols can establish secure communication?
A. HTTPS
B. SFTP
C. HTTP
D. Telnet
Answer: A