When Using Confirmations with Outside Parties,the Auditor Must Assure Which

question 100

Multiple Choice

When using confirmations with outside parties,the auditor must assure which of the following about the outside party?

• A)The outside party exists.
• B)The outside party is able to respond objectively and independently.
• C)The outside party is unbiased in responding.
• D)All the above.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Partial Equity Method

An accounting method used when an investing entity holds significant influence but not full control over an investee, and recognizes its share of profits or losses.

Initial Value Method

An accounting approach where investments are recorded at their purchase cost without subsequent adjustment for market changes.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after eliminating the effects of intercompany transactions.