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NEW QUESTION: 1
When a client engages in transactions involving derivatives, the auditor should:
A. Notify those charged with governance about the risks involved in derivative transactions.
B. Confirm with the client's broker whether the derivatives are for trading purposes.
C. Add an explanatory paragraph to the auditor's report describing the risks associated with each
derivative.
D. Develop an understanding of the economic substance of each derivative.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. In auditing investments in securities and derivatives, the auditor must assess the
reasonableness and appropriateness of assumptions, market variables, and valuation models. In order to
do this, the auditor must consider whether the substance of transactions or events differs materially from
their form. Remember that generally accepted accounting principles require transactions and events to be
reported in accordance with their economic substance, even if this differs from their form.
Choice "B" is incorrect. While the auditor might confirm settled and unsettled transactions with the broker,
whether a security is held for trading purposes is based on management intent and would not be
confirmed with the broker.
Choice "C" is incorrect. There is no requirement that the auditor notify those charged with governance
about the risks involved in derivative transactions.
Choice "D" is incorrect. There is no requirement that the auditor add an explanatory paragraph to the
auditor's report describing the risks associated with each derivative.
NEW QUESTION: 2
You are implementing a data entry screen to include an asset ID field to track company equipment. All asset IDs are eight characters in length. The first three characters are letters followed by a five-digit number.
Which validation approach restricts entries for the asset ID field to the required format?
A. Validate rule
B. Text data type
C. Min/Max characters
D. Edit Validate rule
Answer: D
NEW QUESTION: 3
DRAG DROP
You plan to use Configuration Manager to deploy Microsoft Office 365 ProPlus to client computers that run Windows 10.
You need to ensure that the source files for Office 365 ProPlus are available on your network.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Answer:
Explanation:
Explanation:
References:
https://docs.microsoft.com/en-us/deployoffice/deploy-office-365-proplus-with-system-center- configuration-manager
https://docs.microsoft.com/en-us/deployoffice/configuration-options-for-the-office-2016-deployment- tool