Professional Scepticism Donot Involve

question 28

Multiple Choice

Professional scepticism donot involve:

• A) the professional requirement that all management representations be substantiated with supporting documentation.
• B) seeking independent evidence to corroborate information provided by their client
• C) being suspicious when evidence contradicts documents held by their client or enquiries made of client personnel
• D) none of the above.

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Definitions:

Equivalent Annual Cost

A financial analysis approach to compare the cost-effectiveness of different assets with differing lifespans by calculating their annual costs.

CCA Class

In Canada, Capital Cost Allowance Classes refer to categories under which business assets are placed for the purpose of depreciation calculation for tax purposes.

Maintenance Costs

Expenses incurred to keep an asset in good working condition or to repair it so it continues to operate effectively.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment.