An Auditor Gathers Evidence on Internal Controls for Which Respective

question 4

Multiple Choice

An auditor gathers evidence on internal controls for which respective time periods for the purposes of expressing an opinion on (1) control effectiveness and for (2) testing controls in the financial statement period? Control Effectiveness Financial Statement

• A)(1)As of year-end (2)As of year end
• B)(1)As of year-end (2)Throughout the year
• C)(1)Throughout the year (2)As of year end
• D)(1)Throughout the year (2)Throughout the year

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

Yield to Maturity

The anticipated full income on a bond, provided it is held through to its expiration date.

Interest Rate Risk

The risk of losing money on investments because of changes in interest rates.