Which of the Following Would an Auditor Least Likely Consider

question 104

Multiple Choice

Which of the following would an auditor least likely consider with respect to fair values?

• A) Segregation of duties between those committing the entity to certain transactions and those responsible for undertaking the valuations related to those transactions.
• B) The effect on fair value measurement and disclosures of information available subsequent to the audit.
• C) The role of information technology in determining fair value measurements and disclosures.
• D) Whether the valuation methods used are appropriate in relation to the industry in which the entity operates.

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Definitions:

Legal Position

A statement or principle of law that pertains to a particular factual situation, representing an argument or standpoint in legal proceedings.

Principal's Right

The authority or entitlements a principal has in a legal or contractual relationship, especially in relation to an agent acting on their behalf.

Ratify

To formally confirm or approve an act, agreement, or treaty, making it officially valid.

Fiduciary Duty

An obligation to act in the best interest of another party, typically in financial or trust relationships.