An Auditor Testing Long-Term Investments Would Ordinarily Use Analytical Review

question 254

Multiple Choice

An auditor testing long-term investments would ordinarily use analytical review as the primary audit procedure to ascertain the reasonableness of the:

• A) Valuation of marketable equity securities.
• B) Classification of gains and losses on the disposal of securities.
• C) Completeness of recorded investment income.
• D) Existence and ownership of investments.

---

Definitions:

Consumer

An individual who purchases goods or services for personal use and not for manufacture or resale.

Statute of Limitations

Legislation that defines the ultimate deadline for initiating legal action, varying by the specifics of the claim or case involved.

UCC

All kinds of commercial dealings within the United States fall under the regulations of the expansive Uniform Commercial Code.

Breach of Contract

The failure to perform any term of a contract, agreement, or promise without a legitimate legal excuse.