The Review Service Provided by the CPA Firm Requires the CPA

question 62

Multiple Choice

The review service provided by the CPA firm requires the CPA to

• A)make inquiries concerning matters affecting the financial statements.
• B)confirm accounts receivable.
• C)test internal controls.
• D)provide reasonable assurance.

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Definitions:

Fair Value

The amount one would expect to receive from selling an asset or the cost to transfer a liability in a smooth transaction among market players on the date of valuation.

Non-Controlling Interest (NCI)

The portion of equity ownership in a subsidiary not attributable to the parent company, reflecting the minority shareholders' share of the subsidiary's net assets and profits.

Statement Of Financial Position

A financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time, also known as a balance sheet.

IFRS 3

An International Financial Reporting Standard that deals with the accounting treatment for all business combinations.