Which of the Following Statements Regarding the Reporting of Critical

question 50

Multiple Choice

Which of the following statements regarding the reporting of critical audit matters (CAMs) under PCAOB guidance is incorrect?

• A)Matters that are material to the financial statements but do not relate to accounts or disclosures are not CAMs.
• B)If no CAMs arose during the audit,the audit report should not contain any reference to CAMs.
• C)The disclosure of CAMs under PCAOB guidance is similar to disclosure of KAMs under IAASB guidance.
• D)All of the above are incorrect.

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Definitions:

Date of Issue

The date on which a financial instrument, such as a bond or stock, is made available for sale or issued.

Redemption

The process of paying off or buying back securities or debts by the issuer before their maturity date, often at a predetermined price.

Carrying Value

The book value of an asset, reflecting its original cost minus any depreciation, amortization, or impairment charges.

Bonds Maturity

The date at which a bond's principal amount is due to be paid back to the bondholder, terminating the bond's existence.