The Working Papers Contain Data Useful for Evaluating the Adequacy

question 15

Multiple Choice

The working papers contain data useful for evaluating the adequacy of the audit scope and the fairness of the financial statements.These data help the auditor to conclude whether

• A)control risks were accurately identified and tested.
• B)inherent risks were set as low as possible.
• C)an unmodified audit report can be issued.
• D)the current files properly contain copies of client contracts and agreements.

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Definitions:

Par Value

A nominal value assigned to a share of stock in the charter of the corporation, often used to determine legal capital.

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholder a proportion of the company's profits.

Treasury Stock

Stocks that the issuing corporation has distributed and then bought back, diminishing the number of shares available for trade on the public market.

Market Value

The present cost at which a product or service is available for purchase or sale in an open market.