Management can override controls by
A)recording fictitious journal entries (particularly at year end)
B)appropriately changing assumptions and methods used to estimate account balances
C)omitting,advancing,or delaying recognition of events that occurred during the reporting period
D)disclosing facts that could affect the amounts recorded in the financial statements
E)engaging in complex transactions designed to represent the financial condition of the company
F)both A and B
G)both A and C
H)both D and E

Question

Quizplus · Accepted Answer

Management can override controls by recording fictitious journal entries (choice A) or omitting, advancing, or delaying recognition of events (choice C), but changing assumptions and methods used to estimate account balances (choice B) is not an override of controls. Disclosing facts that could affect the amounts recorded (choice D) and engaging in complex transactions (choice E) are not necessarily overrides of controls. Therefore, the best choice is G, which includes the actions identified in choices A and C as ways management can override controls.

Management Can Override Controls by