Which are the types of misstatements relevant to the auditor’s consideration of fraud in a financial statement audit?A . misstatements arising from fraudulent financial reportingB . misstatements arising from misappropriations of assetsC . Both...
Which of the following is NOT the interrelated component of internal control?A . Control environmentB . Risk assessmentC . Control activitiesD . Planning controlView AnswerAnswer: D
Adjusting and Others (AO) reserves are often provided for by using the calendar year paid-to-paid method rather than the accident year paid-to-paid method used for Inflation in Defense & Cost Containment (DCC) reserves.A ....
Which investments held by life insurance enterprises should be carried in the balance sheet at amortized cost?A . Appraisal-term actsB . Variable-term portfolioC . Fixed-term portfolioD . Revenue-earned portfolioView AnswerAnswer: C
A premium deficiency relating to which insurance contracts indicate a probable loss on premiums yet to be earned.A . long durationB . premium policyC . short durationD . None of the aboveView AnswerAnswer: C
The pro rata portion of premiums written allocable to unexpired policy periods represents unearned premiums, which are reflected as in the balance sheet.A . LiabilitiesB . ExpensesC . RevenuesD . None of the aboveView...
The agents submit to the insurance entity a statement of all policies issued or due during the current month, and the net amount of the statement is subsequently to be paid in accordance with...
The adjustments of the premium during the period of coverage based on actual experience during that same period are called:A . Policy ratingB . Schedule ratingC . Experience ratingD . Retrospective Experience ratingView AnswerAnswer:...
For immediate annuities, this is the ______________, defined by the sequence of periodic annuity benefit payments the policyholder is promised.A . maximum credited rateB . minimum credited rateC . implicit interest rateD . explicit...
An attitude that includes a questioning mind and a critical assessment of audit evidence is called:A . Operational skepticismB . Audit skepticismC . Professional skepticismD . None of the aboveView AnswerAnswer: C
