Although the quantity and content of audit documentation vary with each engagement, an auditor's permanent files most likely include

a. Schedules that support the current year's adjusting entries
b. Prior years' accounts receivable confirmations that were classified as exceptions
c. Documentation indicating that the audit work was adequately planned and supervised
d. Analyses of capital stock and other equity accounts

Ans: d. Analyses of capital stock and other equity accounts

Business

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The option for a firm to expand future production has value because:

A) the option requires no investment today. B) future production will be profitable. C) today's production costs are lower than in the future. D) the future holds uncertainty.

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Earnings management is a key area of SEC investigation and enforcement.

a. true b. false

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