An Auditor Verifies Amounts Recorded in Their Client's Records Using

question 25

Multiple Choice

An auditor verifies amounts recorded in their client's records using

• A) electronic evidence.
• B) verbal evidence.
• C) confirmations.
• D) all of the above

---

Definitions:

Parent-Company Extension Method

An accounting approach used in consolidation, where the parent company's financial statements extend to include the subsidiary's transactions and balances.

Goodwill

Goodwill is an intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets.

NCI

Non-Controlling Interest, which refers to the equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Common Shares

Equity securities representing ownership in a company, giving holders voting rights and a share in the company's profits via dividends.