Which of the Following Is a Factor That the Auditor

question 18

Multiple Choice

Which of the following is a factor that the auditor should consider as they affect the reliability and relevance of information produced by a management's specialist?

• A)Competence,capabilities,and objectivity of that specialist.
• B)Work performed by that specialist.
• C)Appropriateness of that specialist's work as audit evidence for the relevant assertion.
• D)All of the above.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings as decided by the board of directors.

Fair Value Method

An accounting approach wherein assets and liabilities are priced at their current market value to provide a more accurate valuation on financial statements.

Stock Investments

Investments in shares of public companies, aiming to generate income through dividends or capital gains.

Consolidation

Consolidation is the process of combining the financial statements of several subsidiaries or companies into the combined financial statements of the parent company to present as a single economic entity.