In Auditing Investments, Auditors May Compare Current-Year and Prior-Year Balances

question 73

Multiple Choice

In auditing investments, auditors may compare current-year and prior-year balances or compare actual results for the amount of investments and investment income with budgets or the documentation of management's plans. Unexpected differences would would be least likely to pertain to assertions about:

• A) existence of occurrence.
• B) completeness.
• C) rights and obligations.
• D) valuation or allocation.
• E) presentation and disclosure.

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Definitions:

Connotations

The array of emotions, associations, or additional meanings that a word or phrase evokes, beyond its literal definition.

Informant

A person who provides valuable information or intelligence, often for research or investigative purposes.

Utilitarianism

An ethical theory that emphasizes the greatest good for the greatest number, focusing on outcomes rather than rules or duties.

Categorical Imperative

A central philosophical concept in the ethics of Immanuel Kant, stating an action is morally right if it can be universally applied.