Performing Numerical Accuracy Tests for Foreign Currency Translation, Payroll Taxes

question 30

Multiple Choice

Performing numerical accuracy tests for foreign currency translation, payroll taxes, interest on loans outstanding, and depreciation calculations ________.

• A)is the role of the internal audit function
• B)is the responsibility of management
• C)is referred to as recalculation
• D)is unnecessary if the client is assessed as having low control risk

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Definitions:

Copper Futures

Contracts to buy or sell copper at a predetermined price on a specified future date.

Futures Price

The agreed-upon price for the future sale or purchase of an asset in a futures contract, determined in the futures market.

Counterparty Risk

The risk that the counterparty to a transaction will not be able to make required payments when due.

Derivatives Contract

A financial agreement between parties whose value is based on, or derived from, an underlying financial asset, rate, or index.