When Auditing the Market Value of an Investment, an Auditor

question 95

Multiple Choice

When auditing the market value of an investment, an auditor would be least likely to:

• A)examine quoted market prices.
• B)evaluate management's procedure for determining market prices.
• C)make his or her own determination of market prices.
• D)confirm market prices with a broker.

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Definitions:

Adjusting Entries

Journal entries used to adjust the accounting records for events that have occurred but not yet recorded in the financial statements at the end of the accounting period.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent accounts, thus preparing the accounts for the next period.

Work Sheet Heading

The title section of a work sheet that typically includes the company name, title of the document, and the period covered.

Adjusted Trial Balance

A list of all the accounts of a company, showing the balances after adjustments, used to prepare financial statements.