COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The difference in conditions between the Transaction Affected by a Related Party and the Independent Transaction being compared
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The advantages and disadvantages of each method that can be applied
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The availability of independent transactions that provide a reliable comparison
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The degree of comparability between the Transactions Affected by a Related Party and the Independent Transactions that are being compared
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Detailed explanation-1: -AU DITING 5. Management is responsible for the identification and disclosure of related parties and transactions with such parties.
Detailed explanation-2: -Procedures to identify related parties and transactions include inquiry, examination, and review procedures. Identifying and evaluating significant unusual transactions and transactions with executive officers can identify previously undisclosed related party relationships and transactions.
Detailed explanation-3: -The PCAOB makes it clear that the CEO and CFO are responsible for the internal control over financial reporting and the preparation of the statements.
Detailed explanation-4: -Attribute sampling is a statistical process used in audit procedures that aims to analyze the characteristics of a given population. This practice is often used to test whether or not a company’s internal controls are being correctly followed.