An Auditor Testing Long-Term Investments Would Ordinarily Use Substantive Analytical

question 45

Multiple Choice

An auditor testing long-term investments would ordinarily use substantive analytical procedures as the primary audit evidence to support the reasonableness of the

• A) valuation of marketable equity securities.
• B) classification of gains and losses on the disposal of securities.
• C) completeness of recorded investment income.
• D) existence and ownership of investments.

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Definitions:

Marcus Buckingham

Known for his work on strengths-based management and leadership, he is an author and business consultant focusing on talent development.

Donald Clifton

A psychologist and business executive known for his work in the field of strengths-based psychology and the development of strengths assessment tools.

Mihaly Csikszentmihalyi

A Hungarian-American psychologist recognized for his work on the concept of “flow,” a state of heightened focus and immersion in activities.

360-degree Feedback

A performance appraisal method where an employee is evaluated by feedback from various sources, including peers, supervisors, subordinates, and sometimes clients.