Which of the following would provide the best form of evidential matter pertaining to the annual valuation of a long-term investment in which the entity owns a 45 percent voting interest?

Question

Quizplus · Accepted Answer

The audited financial statements of the investee company would provide the best form of evidential matter as they are prepared using generally accepted accounting principles and are audited by an independent auditor. This would provide reasonable assurance about the reliability of the financial information presented in the statements. Market quotations, fair value, and historical costs may not necessarily reflect the true value of the investment and may not be directly relevant to the specific investment in question.

Which of the Following Would Provide the Best Form of Evidential