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NEW QUESTION: 1
In testing long-term investments, an auditor ordinarily would use analytical procedures to ascertain the
reasonableness of the:
A. Classification between balance sheet portfolios.
B. Completeness of recorded investment income.
C. Valuation of marketable equity securities.
D. Existence of unrealized gains or losses in the portfolio.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. In testing long-term investments, an auditor ordinarily would use analytical
procedures to ascertain the reasonableness of the completeness of recorded investment income. These
procedures would probably include a comparison of the recorded investment income with the expected
amount (based upon the related interest rate, dividends declared, etc.) and the income balance audited in
the prior year.
Choice "B" is incorrect. Classification between balance sheet portfolios would most likely be tested by
confirming the terms of the investment and making inquiries of management regarding how long they
intend to hold the securities.
Choice "C" is incorrect. To test the valuation of marketable equity securities an auditor would most likely
compare to market quotations (cost method) or examine the audited financial statements of the investee
company (equity method).
Choice "D" is incorrect. To identify and quantify the existence of unrealized gains and losses in the
portfolio, an auditor would examine the trading prices in the Wall Street Journal (or other source) for those
long-term investments carried under the cost method. For those carried under the equity method, an
auditor would review the audited financial statements of the investee company.
NEW QUESTION: 2
Click on the exhibit.
If the primary path goes down, which secondary LSP path will the head-end router select first?
A. Secondary_Path-4
B. Secondary_Path-3
C. Secondary_Path-1
D. Secondary_Path-2
Answer: B
NEW QUESTION: 3
What information may be updated on the Company Profile?
A. Primary Contact and Address Information
B. Fiscal Year
C. Language, Locale, and Time Zone
D. All of the above
E. Forecasting
Answer: A,B,C
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