Problem - An attestation engagement is one in which a CPA is engaged to
- provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.
- issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party.
- assemble pro forma financial statements based on the representations of the entity's management without expressing any assurance.
- testify as an expert witness in accounting, auditing, or tax matters, given certain stipulated facts.
A marketable equity security is transferred from the available-for-sale portfolio to the trading securities portfolio. At the transfer date, the security's cost exceeds its market value. What amount is used at the transfer date to record the security in the trading portfolio?
- Cost, regardless of whether the decline in market value below cost is considered permanent or temporary
- Cost, if the decline in market value below cost is considered temporary
- Market value, only if the decline in market value below cost is considered permanent
- Market value, regardless of whether the decline in market value below cost is considered permanent or temporary