If More Than One Component Auditor Was Used to Audit

question 83

Multiple Choice

If more than one component auditor was used to audit multiple subsidiaries, _______.

• A)then the audit report should not be relied upon
• B)then the portion of the client audited by all component auditors can be aggregated together and expressed as one-dollar amount or percentage
• C)then the portion of the client audited by all prior auditors can be aggregated together and expressed as one-dollar amount or percentage
• D)control risk will increase accordingly

Grasp the concepts and financial implications of issuing bonds at a premium or discount.

Recognize the methods and reasons for early retirement of bonds.

Comprehend the mechanics and effects of bond conversion on company finances.

Learn the impact of bond issuance on company cash flows and ownership control.

---

Definitions:

Inflation

The pace at which prices for general goods and services escalate, causing a decline in buying power.

GDP Price Index

A measure that tracks changes in prices of all goods and services produced within a country and is used to calculate real GDP.

Base Year

A specific year chosen as a reference point for financial or economic data comparison over time.

Inflation

The speed at which prices for goods and services generally ascend, wearing away the power to purchase.