When Using Confirmations with Outside Parties,the Auditor Must Assure Which

question 100

Multiple Choice

When using confirmations with outside parties,the auditor must assure which of the following about the outside party?

• A)The outside party exists.
• B)The outside party is able to respond objectively and independently.
• C)The outside party is unbiased in responding.
• D)All the above.

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Definitions:

Deferred Tax Asset

An accounting term representing taxes that have been overpaid or deferred for future periods, potentially reducing future tax liabilities.

Pretax Accounting Income

The income of a business before any tax is deducted, often used in financial reporting and analysis.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, varying according to income level and tax laws.

Tax Credit

An amount that taxpayers can subtract directly from taxes owed to the government.