ACC 231 Chapter 6 HW Question and
answers 100% correct 2025/2026
Unqualified opinion - correct answer ✔An audit opinion that states that financial statements are fairly
presented
Audit - correct answer ✔An examination of financial statements
IFRS - correct answer ✔International accounting standards issued by the IASB
GAAP - correct answer ✔Accounting standards issued by FASB and used in the United States
External audit - correct answer ✔An audit performed by an independent CPA
CPA - correct answer ✔An accountant licensed to practice by one of the states
FASB - correct answer ✔Issues accounting standards used in the United States
Qualified opinion - correct answer ✔An audit opinion that brings attention to special circumstances
IASB - correct answer ✔Issues accounting standards used internationally
GAAS - correct answer ✔Auditing standards developed by the AICPA
Which of the following is necessary for fraud to occur?
A. Perceived opportunity
, B. Perceived pressure
C. Rationalization
D. All three are necessary - correct answer ✔D. All three are necessary.
Internal control is
A. the act of stealing a business's assets.
B. the process that helps a business achieve its objectives, such as operating efficiently and effectively.
C. the reconciliation of the bank's cash balance to the book's cash balance.
D. the preparation of fraudulent financial statements. - correct answer ✔B. the process that helps a
business achieve its objectives, such as operating efficiently and effectively.
Internal auditors focus on ______________ ; external auditors are more concerned with
______________.
A. financial statements; laws and regulations
B. e-commerce; fraud
C. company policies and procedures; financial statements
D. financial statements; risk assessment - correct answer ✔C. company policies and procedures;
financial statements
Identify each of the following as an example of a perceived pressure (P), perceived opportunity (O), or
rationalization (R) in the fraud triangle:
1. Job dissatisfaction
2. Greed
3. "It's for a good purpose."
4. Weak internal control
5. Gambling addiction - correct answer ✔1. P
2. P
answers 100% correct 2025/2026
Unqualified opinion - correct answer ✔An audit opinion that states that financial statements are fairly
presented
Audit - correct answer ✔An examination of financial statements
IFRS - correct answer ✔International accounting standards issued by the IASB
GAAP - correct answer ✔Accounting standards issued by FASB and used in the United States
External audit - correct answer ✔An audit performed by an independent CPA
CPA - correct answer ✔An accountant licensed to practice by one of the states
FASB - correct answer ✔Issues accounting standards used in the United States
Qualified opinion - correct answer ✔An audit opinion that brings attention to special circumstances
IASB - correct answer ✔Issues accounting standards used internationally
GAAS - correct answer ✔Auditing standards developed by the AICPA
Which of the following is necessary for fraud to occur?
A. Perceived opportunity
, B. Perceived pressure
C. Rationalization
D. All three are necessary - correct answer ✔D. All three are necessary.
Internal control is
A. the act of stealing a business's assets.
B. the process that helps a business achieve its objectives, such as operating efficiently and effectively.
C. the reconciliation of the bank's cash balance to the book's cash balance.
D. the preparation of fraudulent financial statements. - correct answer ✔B. the process that helps a
business achieve its objectives, such as operating efficiently and effectively.
Internal auditors focus on ______________ ; external auditors are more concerned with
______________.
A. financial statements; laws and regulations
B. e-commerce; fraud
C. company policies and procedures; financial statements
D. financial statements; risk assessment - correct answer ✔C. company policies and procedures;
financial statements
Identify each of the following as an example of a perceived pressure (P), perceived opportunity (O), or
rationalization (R) in the fraud triangle:
1. Job dissatisfaction
2. Greed
3. "It's for a good purpose."
4. Weak internal control
5. Gambling addiction - correct answer ✔1. P
2. P
