Acct 460 Exam 3
EXAM COVERAGE
Acct. 460 - Exam 3
Revenue Recognition - 5-step ASC 606 model,
performance obligations, transaction price allocation
Long-Term Contracts - Percentage-of-completion vs
completed-contract method
Leases (ASC 842) - Operating vs finance leases,
lessee/lessor accounting
Income Taxes - Deferred tax assets/liabilities, temporary
,vs permanent differences
Pensions & Postretirement Benefits - Defined benefit vs
defined contribution plans, funded status
Accounting Changes & Error Corrections - Changes in
estimate, principle, prior period adjustments
Earnings Per Share (EPS) - Basic vs diluted EPS,
convertible securities
Statement of Cash Flows - Indirect method adjustments,
non-cash transactions
Contingencies & Commitments - Loss contingencies,
warranty liabilities
Disclosure Requirements - Footnote disclosures, reporting
standards
,The likelihood of assessing control risk too high is the risk
that the sample selected to test controls
a. Does not support the auditor's planned assessed level
of control risk when the true operating effectiveness of
the control justifies such an assessment.
b. Does support the auditor's planned assessed level of
control risk when the true operating effectiveness of the
control does not justify such an assessment.
c. Contains misstatements that could be material to the
financial statements when aggregated with misstatements
in other account balances or transaction classes.
d. Contains proportionately fewer monetary errors or
, deviations from prescribed internal controls than exist in
the balance or class as a whole.
a. Does not support the auditor's planned assessed level
of control risk when the true operating effectiveness of
the control justifies such an assessment.
EXAM COVERAGE
Acct. 460 - Exam 3
Revenue Recognition - 5-step ASC 606 model,
performance obligations, transaction price allocation
Long-Term Contracts - Percentage-of-completion vs
completed-contract method
Leases (ASC 842) - Operating vs finance leases,
lessee/lessor accounting
Income Taxes - Deferred tax assets/liabilities, temporary
,vs permanent differences
Pensions & Postretirement Benefits - Defined benefit vs
defined contribution plans, funded status
Accounting Changes & Error Corrections - Changes in
estimate, principle, prior period adjustments
Earnings Per Share (EPS) - Basic vs diluted EPS,
convertible securities
Statement of Cash Flows - Indirect method adjustments,
non-cash transactions
Contingencies & Commitments - Loss contingencies,
warranty liabilities
Disclosure Requirements - Footnote disclosures, reporting
standards
,The likelihood of assessing control risk too high is the risk
that the sample selected to test controls
a. Does not support the auditor's planned assessed level
of control risk when the true operating effectiveness of
the control justifies such an assessment.
b. Does support the auditor's planned assessed level of
control risk when the true operating effectiveness of the
control does not justify such an assessment.
c. Contains misstatements that could be material to the
financial statements when aggregated with misstatements
in other account balances or transaction classes.
d. Contains proportionately fewer monetary errors or
, deviations from prescribed internal controls than exist in
the balance or class as a whole.
a. Does not support the auditor's planned assessed level
of control risk when the true operating effectiveness of
the control justifies such an assessment.
