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.

---

Definitions:

New Career Paradigm

A contemporary approach to careers characterized by flexibility, self-employment, and changing roles rather than the traditional stable, lifelong positions within a single organization.

Project Team

A group of individuals assembled to work collaboratively on a specific project, pooling their skills and resources to achieve shared objectives.

Corporate Policy

Guidelines and rules set by a company to dictate behavior and decision-making processes within the corporate structure.

Work Group

A collection of individuals who come together to achieve a specific goal or task, often characterized by less structured interactions than in formal teams.