An Auditor Determines That There Is an Inherent Risk That

Multiple Choice

An auditor determines that there is an inherent risk that a company has not included both the basic earnings per share and diluted earnings per share amounts in financial statements even though significant dilutive securities are part of the company's complex capital structure.This determination is most likely tied to which of the following management assertions?

A) Valuation.
B) Presentation and disclosure.
C) Rights and obligations.
D) Existence.