The Incorrect Statement in Relation to Measurement Issues for Auditors

question 9

Multiple Choice

The incorrect statement in relation to measurement issues for auditors is:

• A)It is easier for the auditor to gather evidence if profit is measured by changes in fair value than when it is determined by matching revenue and expense transactions.
• B)ISA 540 is the international auditing standard that provides guidance for auditing impairment losses.
• C)Under the international auditing standard on impairment losses auditors are required to judge if the amount recognised as an impairment loss is reasonable
• D)Auditors must assess whether the asset or liability values are properly determined from management's significant assumptions.

Understand the procedures and dates relevant to dividend payment and entitlement.

Analyze the strategic reasons for share repurchases and their impact on firm value.

Comprehend the tax considerations affecting investor preferences regarding dividends and capital gains.

Understand the concept of overconfidence in judgments and its exceptions among professionals.