To Satisfy the Valuation Assertion When Auditing an Investment in Another

question 9

Multiple Choice

To satisfy the valuation assertion when auditing an investment in another company that is publicly and actively traded, an auditor most likely would seek to:

• A)inspect the stock certificates evidencing the investment.
• B)examine the audited financial statements of the investee company.
• C)review the broker's advice or canceled check for the investment's acquisition.
• D)obtain market quotations from The Wall Street Journal or another independent source.

---

Definitions:

Cello

A string musical instrument with four strings, played with a bow, and known for its deep, rich tones.

Bales of Hay

Compact bundles of hay, typically bound with twine or wire, and used primarily for feeding livestock.

Horse Stable Inc.

A hypothetical or specific company involved in maintaining buildings or establishments for the care, feeding, and training of horses.

Fully Integrated

A term indicating that all components of a system, process, or agreement are completely unified and functioning as a single entity.