Physical Examination Is the Inspection or Count by the Auditor

question 29

Multiple Choice

Physical examination is the inspection or count by the auditor of items such as:

• A) cash, inventory, cancelled cheques and sales documents.
• B) cash or inventory only.
• C) cash, inventory, securities, notes receivable and tangible fixed assets.
• D) cash, inventory, cancelled cheques and tangible fixed assets.

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Definitions:

Constructive Eviction

Occurs when a landlord's failure to maintain the leased premises effectively forces the tenant to leave due to uninhabitable conditions.

Implied Warranty

An assurance, not explicitly stated, that a product meets certain quality and reliability standards.

Remedy

Legal means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Tenancy At Sufferance

The leasehold interest that occurs when a tenant remains in possession of property after the expiration of a lease.