An Auditor Determines That There Is an Inherent Risk That

question 31

Multiple Choice

An auditor determines that there is an inherent risk that a company has not included both the basic earnings per share and diluted earnings per share amounts in financial statements even though significant dilutive securities are part of the company's complex capital structure.This determination is most likely tied to which of the following management assertions?

• A)Valuation.
• B)Presentation and disclosure.
• C)Rights and obligations.
• D)Existence.

---

Definitions:

Applied Voltage

The external voltage that is applied to an electrical device or circuit, which drives the current flow through it.

Bandwidth

The range of frequencies within a given band, particularly used in reference to the transmission capacity of a network or the passband of a filter.

Parallel LC Circuit

A circuit configuration that contains both inductance (L) and capacitance (C) in parallel, which can exhibit resonance at a specific frequency where reactive effects cancel each other.

Impedance

A measure of the total opposition that a circuit presents to alternating current, including both resistance and reactance.