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NEW QUESTION: 1

A. Option B
B. Option A
C. Option C
D. Option D
Answer: C

NEW QUESTION: 2
During the planning stage of compliance audit, an IS auditor discovers that the bank's inventory of compliance requirements does not include recent regulatory changes related to managing data risk. What would the auditor do FIRST?
A. Report the missing regulatory updates to the chief information officer (CIO)
B. Exclude recent regulatory changes from the audit scope
C. Ask management why the regulatory changes have not been included
D. Discuss potential regulatory issues with the legal department
Answer: C

NEW QUESTION: 3
According to the FASB conceptual framework, the objectives of financial reporting for business
enterprises are based on:
A. The needs of the users of the information.
B. Reporting on management's stewardship.
C. Generally accepted accounting principles.
D. The need for conservatism.
Answer: A
Explanation:
Choice "d" is correct. The FASB conceptual framework states that the objectives of financial reporting
stem from the informational needs of the external users of the information. SFAC 1 para. 28 Choice "a" is
incorrect. Generally accepted accounting principles (GAAP) are derived from and based on the objectives
of financial reporting, not the other way around. Choice "b" is incorrect. Information concerning
management's stewardship is only one aspect of the information financial statements are intended to
provide. SFAC 1 para. 50 Choice "c" is incorrect. Conservatism is an underlying concept for financial
accounting but is not the basis for the objectives. SFAC 2 para. 91-97