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NEW QUESTION: 1
After determining that a related party transaction has, in fact, occurred, an auditor should:
A. Substantiate that the transaction was consummated on terms equivalent to an arm's-length
transaction.
B. Add a separate paragraph to the auditor's standard report to explain the transaction.
C. Perform analytical procedures to verify whether similar transactions occurred, but were not recorded.
D. Obtain an understanding of the business purpose of the transaction.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. After identifying the occurrence of a related party transaction, the auditor should
apply the procedures considered necessary to obtain satisfaction concerning the purpose and nature of
the transaction and its effect on the financial statements.
Choice "A" is incorrect. While an extra paragraph may be added to emphasize a matter, there is no
requirement that related party transactions be disclosed via explanatory language added to the auditor's
report.
Choice "B" is incorrect. Analytical procedures are generally not effective in the identification of related party
transactions.
Choice "D" is incorrect. It will generally not be possible to substantiate representations that the transaction
was consummated on terms equivalent to those that would have prevailed in an arm's-length transaction.
NEW QUESTION: 2
What are three valid Job Plan task components?
A. Routes
B. Tools
C. Contracts
D. Labor
E. Schedules
F. Materials
Answer: D,E,F
NEW QUESTION: 3
Which of the following commands set the sticky bit for the directory /tmp? (Choose TWO correct answers.)
A. chmod +s /tmp
B. chmod 4775 /tmp
C. chmod +t /tmp
D. chmod 2775 /tmp
E. chmod 1775 /tmp
Answer: C,E