Which of the Following Services Does the PCAOB Require Auditors

question 38

Multiple Choice

Which of the following services does the PCAOB require auditors of public companies to perform?

• A)A financial statement audit and an attest audit.
• B)A financial statement audit and an assurance audit.
• C)A financial statement audit and agreed upon procedures.
• D)A financial statement audit and an examination of the effectiveness of internal controls.

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Definitions:

Capital Gains

The increase in value of an asset or investment above its purchase price, realized upon the sale of the asset.

Clientele Effect

A theory suggesting that the types of investors attracted to certain stocks or dividends policies can affect the stock price or policy sustainability.

Dividend Policy

Guidelines a company follows to decide how much it will pay out to shareholders in dividends.

Investors

Individuals or institutions that allocate capital to various types of investments with the expectation of earning a financial return.