A PA Firm Is Conducting an Audit of a Public

question 76

Multiple Choice

A PA firm is conducting an audit of a public company that has operations in both Canada and Finland.There is a conflict between ISAs (International Statements on Auditing) and CASs (Canadian Auditing Standards) for the foreign operations that will be consolidated with the Canadian operations.Which reporting standards should the PA firm follow?

• A)Finnish reporting standards
• B)Canadian reporting standards
• C)international financial reporting standards
• D)the best of Canadian or international standards

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Definitions:

Passively Managed

Investment strategies that aim to replicate the performance of a specific index or benchmark as closely as possible, without active decision-making by managers.

Equity Index

A benchmark that represents the performance of a group of stocks, indicating the overall trend in the equity market.

Portfolio Manager

A professional responsible for making investment decisions and overseeing a portfolio of assets to achieve the investor's objectives.

Asset Universe

The full range of investment options available for asset allocation.