An auditor generally uses analytical procedures to obtain evidence regarding estimates. Question 29 options: True False

Which of the following presumptions is correct about the reliability of evidential matter? a. To be reliable, evidential matter should be convincing rather than persuasive. O b. Reliability of evidential matter refers to the amount of corroborative evidence obtained. O c. Effective internal control provides more assurance about the reliability of evidential matter. O d. Information obtained indirectly from outside sources is the most reliable evidential matter.

Risk of incorrect rejection is defined as _______.      the risk that the auditor concludes that a material misstatement does not exist when it does exist     the risk that the auditor concludes that a material misstatement exists when it does not exist     the risk that an auditor incorrectly rejects a client     the risk that management may reject the audit opinion issued by the auditor   An advantage of statistical sampling _______.     is that it allows an auditor to measure control risk     is that it allows an auditor to measure sampling risk     is that it allows an auditor to measure inherent risk     is that it is cheaper to perform, resulting in lower audit fees for the client

FASB ASC 715–60: Compensation–Retirement Benefits–Defined Benefit Plans–Other Postretirement (previously Statement of Financial Accounting Standards No. 106) establishes accounting standards for postretirement benefits other than pensions, most notably postretirement health care benefits. Essentially, the standard requires companies to accrue compensation expense each year employees perform services, for the expected cost of providing future postretirement benefits that can be attributed to that service. Typically, companies do not prefund these costs for two reasons: (a) unlike pension liabilities, no federal law requires companies to fund nonpension postretirement benefits and (b) funding contributions, again unlike for pension liabilities, are not tax deductible. (The costs aren’t tax deductible until paid to, or on behalf of, employees.) Required: 1. As a result of being required to record the periodic postretirement expense and related liability, most companies now report lower…