Analytical Procedures Used in Planning an Audit Should Focus on Identifying

question 22

Multiple Choice

Analytical procedures used in planning an audit should focus on identifying:

• A)the predictability of financial data from individual transactions.
• B)the various assertions that are embodied in the financial report.
• C)areas that may represent specific risk relevant to the audit.
• D)material weaknesses in internal control.

Understand the treatment of realized gains from the sale of FVTOCI investments.

Comprehend different valuation and reporting methods for investments and their implications on financial statement analysis.

Know the prospective and retrospective handling of changes in ownership interests causing a switch between equity method and fair value accounting.

Understand and apply the equity method of accounting for investments in associates.

---

Definitions:

Conversational Phrase

A sequence of words used in spoken or written language within a dialogue context.

To Text Box

A function in document and presentation software that allows users to input text within a designated box.

Columnar Style

Refers to a layout or format where data or information is organized in vertical columns, often used in spreadsheets or reports.

Alert Window

A pop-up notification that appears on a computer screen to inform the user about a system event, error, or other important message.