Carrying amount of a client investments

Assignment Help Accounting Basics

Reference no: EM13139491

If the auditor discovers that the carrying amount of a client's investments is overstated because of a loss in value that is other than a temporary decline in market value, the auditor should insist that:

a. The approximate market value of the investments be shown in parentheses on the face of the balance sheet.

b. The investments be classified as long term for balance sheet purposes with full disclosure in the footnotes.

c. The loss in value is recognized in the financial statements.

d. The equity section of the balance sheet separately shows a charge equal to the amount of the loss.

Reference no: EM13139491

Questions Cloud

Find margin of error to find confidence level : The mean score on a quantitative literacy test was 310 with a standard deviation of 114. Find the margin of error for this estimate at a confidence level of 95%.

How the adaptation aids digestion : The foregut is the region that begins the digestive process by transforming large food chunks into a smaller chunky soup. The human stomach is a muscular sack of glands that secretes proteases and HCl.

How could a continued depreciation of thai baht affect : How could a continued depreciation of the Thai baht affect Blades? How would it affect Blades relative to US exporters invoicing their roller blades in US Dollars?

Models for understanding the world : Summarize the three other models for understanding the world. Cite examples of how and where the three other models are visible in the world. Summarize how Brueggemann's Covenantal Historical model contrasts with the other three models for understand..

Carrying amount of a client investments : If the auditor discovers that the carrying amount of a client's investments is overstated because of a loss in value that is other than a temporary decline in market value, the auditor should insist that

Explain radio systems : Radio Systems, In design of radio systems that incorporate wireless networks, considerations must be taken such as user access, transmission direction, switching and signal strength.

How is bacterial growth related to controlling microbes : how is bacterial growth related to controlling microbes in public facilities such as restaurants, schools, hospitals, and labs.

What is amount of interest expense from this lease : Its’ annual lease payment is $15,000. What is amount of interest expense from this lease? First Year $ Second Year $

Understanding jesus parables of reversal : How does Jesus' use of parables of reversal challenge the understanding of the kingdom of God among his contemporaries? The Jewish people had their beginning with the patriarch Abraham.

User Account

All Pages