AASB 110 Specifies That Adjusting Events Should Be Considered Against

question 49

Multiple Choice

AASB 110 specifies that adjusting events should be considered against two criteria to determine their treatment.The two criteria are:

• A) (a) provides an indication that conditions may have existed at reporting date; or (b) reveals additional solid evidence of a condition that existed at reporting date.
• B) (a) provides additional evidence of conditions that existed at the date the audit report was signed; or (b) reveals for the first time a condition that existed at date of completion.
• C) (a) provides an indication that conditions may have existed at date of completion; or (b) reveals additional solid evidence of a condition that existed at date of completion.
• D) (a) provides additional evidence of conditions that existed at reporting date; or (b) reveals for the first time a condition that existed at reporting date.

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Definitions:

Explicit Knowledge

Information or knowledge that is easily articulated, codified, accessed, and verbalized, typically found in documents or databases.

Observation

The action or process of closely monitoring or noting something or someone in order to gain information.

Johari Window

A model used to understand and improve self-awareness, interpersonal relationships, and mutual understanding within groups.

Disclosure

The act of revealing personal information to others, which can influence social dynamics and trust building.