An Auditor Determines That There Is an Inherent Risk That

question 31

Multiple Choice

An auditor determines that there is an inherent risk that a company has not included both the basic earnings per share and diluted earnings per share amounts in financial statements even though significant dilutive securities are part of the company's complex capital structure.This determination is most likely tied to which of the following management assertions?

• A)Valuation.
• B)Presentation and disclosure.
• C)Rights and obligations.
• D)Existence.

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Definitions:

Cause Célèbre

A controversial issue or incident attracting a great deal of public attention.

Ethiopia

A country located in the Horn of Africa, known for its rich history, diverse cultures, and as one of the oldest locations of human life known to scientists.

Franz Boas

Known as the "father of American anthropology," Boas was a German-American anthropologist who developed the foundation for the culture concept and advocated for cultural relativism.

Social Construct

An idea or notion that has been created and accepted by the people in a society but is not based on natural laws.