During Final Review of Working Papers and Financial Statements,possible Oversights

question 12

Multiple Choice

During final review of working papers and financial statements,possible oversights in the audit can be identified by

• A)the partner's knowledge of the client's business combined with effective analytical procedures.
• B)conducting a closing interview with management of the client.
• C)conducting a meeting with the audit team.
• D)reviewing the minutes from the board meetings.

---

Definitions:

Stockholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company, thus having a claim to a part of the company's assets and earnings.

Acquiring Company

A company that purchases more than 50% of the shares of another company, making the latter its subsidiary.

Tender Offer

A public, open offer or invitation (usually announced in a newspaper) by a prospective acquirer to all stockholders of a publicly traded corporation to tender their stock for sale at a specific price during a specified time.

Book Value

The net value of a company's assets minus its liabilities, as shown on its balance sheet, often used to estimate the company's value.