An audit firm will test the pension obligation of a client by performing which of the following procedures?
A)calculating the actuarial assumptions and providing a journal entry.
B)evaluating the actuary's independence and competent and sufficiency of the evidence..
C)asking the client to adjust the long-term discount rate to smooth expenses.
D)taking a sample of employees,tracing estimated lives to death certificates.

Question

Quizplus · Accepted Answer

Evaluating the actuary's independence and the competence and sufficiency of the evidence is a standard audit procedure to ensure the reliability of the actuarial calculations related to pension obligations.

An Audit Firm Will Test the Pension Obligation of a Client