To Satisfy the Valuation Assertion When Auditing an Investment in Another

question 116

Multiple Choice

To satisfy the valuation assertion when auditing an investment in another company that is publicly and actively traded,an auditor most likely would seek to

• A) Inspect the stock certificates evidencing the investment.
• B) Examine the audited financial statements of the investee company.
• C) Review the broker's advice or canceled check for the investment's acquisition.
• D) Obtain market quotations from The Wall Street Journal or another independent source.

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Definitions:

Inter-Organizational

Relating to the relationship, interaction, or cooperation between different organizations.

Sponsoring Organization

An entity that supports a project, event, or program, often providing resources such as funding, legitimacy, or expertise.

Self-Observations

The practice of attentively monitoring one's own thoughts, feelings, and behaviors, often for personal development purposes.

Self-Anchored Rating

A subjective assessment method where individuals rate concepts or objects based on personal criteria or benchmarks.