When Auditing Financial Instruments, Analytical Procedures Can Be Used to

question 63

Multiple Choice

When auditing financial instruments, analytical procedures can be used to

• A) test the reasonableness of interest and dividend income.
• B) test the year-end balance.
• C) determine if the financial instruments were properly valued.
• D) determine if the gain or loss on the sales were properly computed.

Recognize the importance of equitable principles in contract law, including undue influence, misinterpretation, and the unconscionable bargain doctrine.

Understand the main sources of household income.

Describe the impact of economic conditions on transfer payments.

Identify the primary components of personal income in the United States.