When an Auditor Performs a Review of an Interim Financial

question 19

Multiple Choice

When an auditor performs a review of an interim financial report which of the following steps would not be part of the review?

• A) testing of the computer controls.
• B) inquiry of management.
• C) review of ratios and trends.
• D) reading the minutes of the shareholders' meetings.

Analyze the daily movement of stock prices and compute net changes.

Compute the amount allocated to preferred stockholders when a company declares dividends.

Calculate the gain or loss from the sale of stocks, considering purchase and sale prices along with commission charges.

Determine the total amount paid to common stockholders when dividends are declared.

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Definitions:

Oceanic Crust

The part of the Earth's crust that underlies the ocean basins, composed primarily of basalt and gabbro, and is denser than continental crust.

Reversed Magnetic Polarity

A condition where the magnetic north and south poles swap positions, a phenomenon observed in the Earth's geological history.

Compass Needle

The magnetized pointer on a compass that aligns itself with the Earth's magnetic field to indicate the direction of magnetic north.

Seamounts

Underwater mountains formed by volcanic activity, not reaching the ocean's surface, and often a hotspot of marine life.