The Audit Approach for Level 2 Requires the Auditor to Determine

question 29

Multiple Choice

The audit approach for Level 2 requires the auditor to determine which of the following?

• A)the correspondence of the client's assets to similar assets in an active market.
• B)contingent liabilities.
• C)sensitivity of model.
• D)the performance of tests of controls.

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Definitions:

Air Masses

Large volumes of air defined by their temperature and humidity characteristics, forming the basis of weather patterns.

Equator

The Equator is an imaginary line around the Earth's surface located equidistant from the North and South Poles, dividing the Earth into the Northern and Southern Hemispheres.

Latitude

A geographic coordinate that specifies the north-south position of a point on the Earth's surface.

Permafrost

Of arctic tundra, a perpetually frozen layer of soil that prevents water from draining.