Risks and Uncertainties Flashcards Preview

FAR CPA Custom > Risks and Uncertainties > Flashcards

Flashcards in Risks and Uncertainties Deck (7)
1

What are some sources of risk and uncertainty?

The nature of the entity's ops, use of estimates, market vulnerabilities, going concern issues

2

Management has to continually assess its own ability to continue as a going concern. TF

True

3

Nature of operations risk includes an assessment of a knowledge of the firms products and services, geographical locations, and _____ _____.

Principal markets

4

Material estimates may or may not need to be disclosed. TF

False, must be

5

Significant concentrations are aspects with _______ diversification.

Insufficient, these must be disclosed if they exist at the balance sheet date, make the entity vulnerable, and is "reasonably possible"

6

Government regulations are a source of risk needed in disclosures. TF

False

7

The new and old estimates in quantitative terms are required to be disclosed. TF

False