Which of the Following Best Describes Assurance Services

question 84

Multiple Choice

Which of the following best describes assurance services?

• A)Auditors are desperate to offer assurance services so that they will still have business in the future
• B)Assurance and auditing are closely related
• C)Assurance is a guarantee that there is no fraud in a company
• D)Assurance services usually require expertise in information technology

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Definitions:

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating inter-company transactions.

Non-Controlling Interest

This refers to the portion of equity in a subsidiary not owned by the parent company, representing minority shareholders' rights in the subsidiary's net assets.

Marketable Securities

Financial instruments that can be easily converted into cash at market value, such as stocks, bonds, and treasury bills.

Fair Value

An estimated market value of an asset or liability based on current market conditions and mutually informed parties' transactions.