For Each Test of Transactions and Each Test of Account

question 41

Essay

For each test of transactions and each test of account balances for investments listed below,identify the assertion for which the test provides evidence.
1.Determine whether there has been any permanent impairment in the value of the cost basis of an individual security.
2.Inspect securities if they are maintained by the client or obtain a confirmation from an independent custodian.
3.Search for purchases of securities by examining transactions for a few days after year-end.
4.Examine brokers' advices for a sample of securities purchased during the year.

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Definitions:

Degree Of Variation

Degree Of Variation refers to the extent to which values of a particular variable or trait differ from each other in a set of data or population.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, often used in statistics.

Distribution Of Scores

Refers to the way in which scores are spread out or distributed across a range in a dataset.

Extreme Scores

Describes unusually high or low measurements in data, often considered outliers in statistical analyses.