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:

Retirement Account

Financial accounts that offer tax advantages for saving for retirement, including IRAs, 401(k)s, and pension plans.

Specialty Product

High-quality, unique, or luxury items that consumers make special efforts to purchase, often involving extensive search and higher expenditure.

Industrial and Farm Equipment

Machinery and tools used in industrial operations and agriculture, such as tractors, harvesters, and assembly lines, to enhance productivity and efficiency.

Market Coverage

focuses on the extent to which a product or brand is recognized and available to customers within a market, affecting its overall market share.