An Auditor Determines That There Is an Inherent Risk That

question 35

Multiple Choice

An auditor determines that there is an inherent risk that stock options exercised or expired remain on the organization's books.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:

Subsidence

The sinking or settling of the Earth's surface, often due to natural geological processes or human activities.

Uplift

A process that causes regions of the Earth's surface to rise due to structural changes in the Earth's crust or mantle.

Continental Crust

The thick, buoyant part of the Earth's crust that forms the continents, contrasted with the denser oceanic crust.

Thickness

The measurement from one surface of an object or material to the opposite surface.