Pro forma statements are generally prepared six months to a year into the future. True or False True False

An example of a Type I subsequent event would be  A. a sudden change in senior management after the financial statement date B. a filing with the Securities and Exchange Commission (SEC) of an amended form 10K after the financial statement date C. the bankruptcy of a client’s customer after year-end as a result of poor financial condition that existed as of the balance sheet date D. the bankruptcy of a client’s customer after year-end as a result of poor financial condition that existed after the balance sheet date

A client uses percentages of aging categories to calculate the allowance for doubtful accounts.  When auditing the allowance for doubtful accounts, the auditor must…   Question 4 options:   Ensure that the client’s aging categories are consistent with industry averages.   Ensure that the client has calculated the allowance for the current and all prior years using the same percentages for uncollectible accounts.   Perform tests to ensure that the aging categories are accurate.   Perform tests to ensure that management has not exercised judgment when calculating the allowance for doubtful accounts.

Current Attempt in Progress GAAP requires that all companies that issue an annual report should issue interim financial reports. O the three basic financial statements should be presented each time an interim period is reported upon. O the discrete view is the most appropriate approach to take in preparing interim financial reports. O the same accounting principles used for the annual report should be employed for interim reports.