Physical Examination of Assets Is NOT a Sufficient Form of Evidence

question 23

Multiple Choice

Physical examination of assets is NOT a sufficient form of evidence when the auditor wants to determine the:

• A) ownership of the asset.
• B) condition or quality of the asset.
• C) existence of the asset.
• D) quantity and description of the asset.

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Definitions:

RMSE

Root Mean Square Error, a measure of the magnitude of differences between values predicted by a model or an estimator and the values observed.

Industrial Lathe Sales

The commercial activity involving the buying and selling of industrial lathes, which are machines used for shaping metal, wood, or other materials.

Regression Method

A statistical approach for determining the relationship between a dependent variable and one or more independent variables.