Which Items Are Matters of Governance Interest That an Auditor

question 43

Multiple Choice

Which items are matters of governance interest that an auditor would wish to discuss with those charged with governance?

• A) the general approach and overall scope of the audit
• B) the potential effect on the financial statements of any material risks and exposures
• C) material uncertainties related to events and conditions that may cast significant doubt on the entity's ability to continue as a going concern
• D) all of the above

---

Definitions:

Intrinsic Value

The inherent worth of an asset, distinct from its market value, based on its fundamental characteristics.

ROE

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Required Return

The minimum expected return an investor demands for holding a particularly risky investment.

Plowback Ratio

The percentage of profits a company keeps instead of paying out to shareholders in the form of dividends.