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Many financial reports produced by organizations are nondiscretionary - publicly traded
firms have no choice but to prepare income statements, tax returns, etc. Management
reporting is often called discretionary reporting because it is not mandated, as is
financial reporting. Is this a valid statement? Why or why not?
What negative consequences can result from miscalculated depreciation?
Outline the key steps taken in a basic technology payroll system when preparing the
weekly payroll for a manufacturing firm.
What is a disaster recovery plan?
Explain the difference between producing financial statements in a traditional system
and in a REA model.
The text discusses a red-flag checklist of questions regarding personal traits of
executives which might help uncover fraudulent activity. List three of these questions.
Discuss the three types of controls auditors can perform to determine that programs are
free from material errors.
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