When the Auditor Examines the Minutes of Board of Directors

question 4

Multiple Choice

When the auditor examines the minutes of board of directors' meetings for the amount of the dividend per share and the dividend date,the auditor is checking for

• A)completeness.
• B)valuation.
• C)understandability.
• D)existence.

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Definitions:

Real Option

A choice available to companies involving business decisions on investments, which use the concept of option valuation in financial markets.

Scenario Analysis

A process of analyzing future events by considering alternative possible outcomes (scenarios), often used in the assessment of risk or strategic planning.

NPV

Net Present Value, a calculation used to estimate the profitability of an investment or project by summing the present values of all expected future cash flows.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 indicates certainty.