In Determining the Quantity and Quality of Evidence to Gather,the

question 56

Multiple Choice

In determining the quantity and quality of evidence to gather,the auditor will be satisfied when the evidence is

• A)irrefutable.
• B)conclusive.
• C)highly persuasive.
• D)sufficiently convincing.

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Definitions:

Step Acquisition

The process where a company gradually increases its investment in another company over time, potentially gaining control or significant influence.

Consolidated Income Statement

A Consolidated Income Statement is a financial report that combines the income, expenses, and profits of a parent company and its subsidiaries, showing the overall performance as a single entity.

Acquisition Method

The Acquisition Method is an accounting technique used in consolidating the financial statements of a group where one entity controls others.

Noncontrolling Interest

The share of ownership in a subsidiary that cannot be directly or indirectly linked to the parent company.