Misrepresentation of the Class of Investment of Equity Securities, as Held-To-Maturity

question 88

Multiple Choice

Misrepresentation of the class of investment of equity securities, as held-to-maturity versus available-for-sale :

• A) makes no difference because all marketable equity securities are marked to market.
• B) would be readily detected by standard analytical procedures applicable to investments in equity securities.
• C) would not materially effect presentation and disclosure assertions for investments.
• D) is an important consideration in designing substantive tests of balances of investments in equity securities.
• E) allows management to defer or accelerate the recognition of unrealized gains and losses in income.

---

Definitions:

Organizational Socialization

The process by which new employees learn the values, norms, and required behaviors of an organization.

Shared Assumptions

Common beliefs or ideas implicitly accepted by a group or organization that influence its culture and decision-making processes.

Enacted Values

Represent the values and norms that are actually exhibited or converted into employee behavior within an organization.

Corporate Value Statements

Declarations made by a company to express its core principles and ethical standards intended to guide its practices and decisions.