Which of the Following Would Provide the Best Form of Evidential

question 12

Multiple Choice

Which of the following would provide the best form of evidential matter pertaining to the annual valuation of a long-term investment in which the independent auditor's client owns a 45 percent voting interest?

• A) Market quotations of the investee company's stock.
• B) The current fair value of the investee company's assets.
• C) Historical costs of the investee company's assets.
• D) Audited financial statements of the investee company.

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Definitions:

Organisational Strengths

The unique resources, capabilities, or competencies that an organization possesses, which can be leveraged to achieve competitive advantage and fulfill its mission effectively.

SWOT Analysis

SWOT analysis is a strategic planning tool used to identify the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Environmental Opportunities

Situations or conditions in the external environment that an organization can leverage for its strategic advantage.

Organisational Strengths

The unique capabilities or advantages that distinguish an organization and contribute to its performance and success.