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:

Collusion

Collusion refers to a secret or illegal cooperation or conspiracy, especially among firms, to deceive or gain an unfair advantage.

Fraud Committee

A group formed within an organization tasked with overseeing the detection, investigation, and prevention of fraudulent activities and ensuring financial integrity.

Segregation of Duties

An internal control measure that involves dividing responsibilities among different people to reduce the risk of error or inappropriate actions in financial transactions.

Authorize and Pay

The process of approving financial transactions or disbursements and executing the payment accordingly.