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:

Purchasing Power Parity

A theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Exchange Rate

The price at which one country's currency can be exchanged for another country's currency.

Basket of Goods

A representative collection of products and services used to monitor price changes and inflation over time.

Interest Rates

A finance charge expressed as an annual rate of return or the annual cost of credit or loan, which reflects the time value of money.