When Positive Confirmations Have Been Used, It Is Normally Desirable

question 12

Multiple Choice

When positive confirmations have been used, it is normally desirable to account for unconfirmed balances with alternative procedures:

• A) even if the amounts are small.
• B) if it does not increase the audit firm's costs.
• C) only if the amounts are large.
• D) only if the amounts are material.

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Definitions:

Corporate Raiders

Investors who acquire a large stake in a corporation to effect significant changes, often with the goal of increasing shareholder value.

Hostile Takeovers

A type of acquisition where the target company does not want to be purchased and is taken over against its will by the acquiring company.

Premium Price

A price that is higher than the regular or standard price, often associated with goods of higher quality or insurance costs.

Forward Rate

is a financial term referring to a predetermined interest rate or currency exchange rate agreed upon for a transaction that will occur at a future date.