Which of the Following Would Best Be Described as an Assurance

question 38

Multiple Choice

Which of the following would best be described as an assurance service?

• A)Preparing a report representing a client's position during an IRS audit.
• B)Working with a company to develop a more efficient method of processing financial transactions.
• C)Offering an opinion concerning the accuracy of statements made on an entity's website relating to its online privacy policies.
• D)Assisting a company in identifying potential sources of capital for potential acquisitions.

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Definitions:

Debt SEOs

Secondary Equity Offerings specifically oriented towards raising funds to pay down existing debt, involving the issuance of new stock.

Best Efforts Underwriting

A type of underwriting where the underwriter agrees to sell as much of the offering as possible, but does not guarantee the sale of the entire issue.

Flotation Costs

Costs associated with the issuance of new securities by a firm, including charges for underwriting, legal services, and registration.

Gross Spread

The difference between the underwriting price received by the issuer of securities and the price at which the securities are sold to the public.