An Audit Firm Will Test the Pension Obligation of a Client

question 57

Multiple Choice

An audit firm will test the pension obligation of a client by performing which of the following procedures?

• A)calculating the actuarial assumptions and providing a journal entry.
• B)evaluating the actuary's independence and competent and sufficiency of the evidence..
• C)asking the client to adjust the long-term discount rate to smooth expenses.
• D)taking a sample of employees,tracing estimated lives to death certificates.

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Definitions:

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The belief in the inherent superiority of one's own ethnic group or culture, often resulting in prejudice and discrimination.

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