Which of the Following Would Not Be Included as Part

question 91

Multiple Choice

Which of the following would not be included as part of the documentation related to the substantive procedures for marketable securities?

• A)A schedule of marketable securities prepared by the client.
• B)Reports of any outside valuation experts.
• C)Calculation of any potential impairments.
• D)Policies over purchase or sale of marketable securities.

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders, usually in the form of cash.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of an acquired company's identifiable assets and liabilities.

Fair Value

The estimated market value of an asset or liability in an arm's length transaction between informed and willing parties.

Investment Income

Income received from the assets invested in, such as dividends, interest, or rental income.