The Use of Variable Interest Entities Increase Inherent Risks

question 28

Multiple Choice

The use of variable interest entities increase inherent risks:

• A) with respect to presentation and disclosure of shareholders' equity.
• B) when they are included in the client's consolidated financial statements
• C) except when authorized by the board of directors.
• D) as to the completeness assertions for investing and financing.
• E) with respect to the rights and obligations assertions for shareholders' equity.

---

Definitions:

Discipline Problems

Issues related to maintaining order and adherence to rules within an organization, often requiring corrective action.

Leadership Performance

The effectiveness and outcomes of a leader's actions in guiding and managing an organization or team towards achieving its goals.

Statesmanship

The skill, wisdom, and practices of a statesman, typically involving diplomacy, wise governance, and leadership in public affairs.

Requirements for Statesmanship

The qualities, skills, and experience deemed necessary for an individual to be considered a skilled and respected political leader.