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:

Undervalued

Describes a security or other type of investment that is selling for a price presumed to be less than its true intrinsic value.

Overvalued

A term describing a situation in which a security or an asset is trading at a price exceeding its intrinsic value.

Noncontrolling Interest

Noncontrolling interest, also known as minority interest, represents the portion of a subsidiary company’s equity that is not owned by the parent company.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group of companies when one acquires control over the other.