Which of the Following Is Not a Key Type of Evidence

question 123

Multiple Choice

Which of the following is not a key type of evidence that the auditor needs to examine with respect to pensions and postemployment benefits?

• A)Whether the actuarial firm hired by management is independent,capable,and objective.
• B)The appropriateness of the actuarial firm's work.
• C)The reasonableness of significant interest rate assumptions.
• D)The length of illnesses that pension recipients contract.

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Definitions:

Internal Rate Of Return

A metric used in financial analysis to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.

Initial Cost

Initial cost refers to the expense incurred to purchase an asset or start a project, including the acquisition price and any additional costs necessary to bring the asset to a usable state.

Ether

A class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups, often used as solvents or anesthetics.

Air Intake System

The system in a vehicle or engine that allows external air to be drawn in, filtered, and then mixed with fuel for combustion.