Roll-Forward Procedures Are Performed

question 41

Multiple Choice

Roll-forward procedures are performed:

• A) to update the audit findings from the time of the interim procedures through to year-end.
• B) to detect fraud in various balance sheet accounts.
• C) after the end of the financial year.
• D) None of the above

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Definitions:

Required Rate

The minimum expected rate of return on an investment, necessary to compensate for the risk taken.

Floating Rate Bond

A type of bond whose interest payments vary with changes in market interest rates, also known as a floater or variable rate bond.

Variable Amount

A sum that can change over time or depending on conditions, in contrast to a fixed amount.

Coupon Interest

The fixed interest rate paid by a bond, typically annually or semi-annually.