Which of the Following Would Provide the Auditor the Best

question 67

Multiple Choice

Which of the following would provide the auditor the best evidence of the Rights assertion for bitcoin recorded as an asset by a client?

• A)Inspection of purchase records maintained by the client.
• B)Confirmation of the bitcoin from a third party.
• C)Execution of a small bitcoin transaction from a digital wallet to demonstrate control of the private key.
• D)Verification of the price of the bitcoin in the Wall Street Journal as of the balance sheet date.

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Definitions:

Cash Acquisition

A method of purchasing a company or asset where the buyer uses cash as the form of payment rather than stocks or other forms of payment.

Equity-Financed

Refers to the way of raising funds for business activities by selling ownership stakes in the company, rather than borrowing money.

Post-Merger

The period following the completion of a merger or acquisition, during which integration and restructuring processes occur.

Purchase Accounting Method

An accounting method used in mergers and acquisitions to allocate the purchase price to the acquired assets and liabilities.